An Improvement on An Interest Rate Commission Agent Banking System Model (AIRCABS Model)

Ameha Tefera Tessema and Jan Kruger
Additional contact information
Ameha Tefera Tessema: Doctor of Business Leadership Candidate, School of Business Leadership, University of South Africa, South Africa,

International Journal of Economics and Financial Issues, 2017, vol. 7, issue 4, 685-705

Abstract: This paper sought to test An interest rate commission agent banking model's viability and reliability. An interest rate commission agent banking system (AIRCABS) increased the investor loan funding agent bank's profitability and sustainability by shifting credit risk and liquidity crunch to investors and entrepreneurs. The bank increases stable deposit by applying discrete market deposit interest rate incentive into depositors' accounts and by letting depositors latter to shift to investor position having the bank as an agent to collect proportionate credit price instead of deposit interest rate on the portion of the fund the bank has already invested. Therefore, an interest rate commission agent bank found viable and reliable.

Keywords: Agent Bank Model; Agent Bank's Profitability and Sustainability; Stable Deposit (search for similar items in EconPapers)
JEL-codes: E21 E22 E40 G01 G21 G32 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econjournals.com/index.php/ijefi/article/download/5039/pdf (application/pdf)
https://www.econjournals.com/index.php/ijefi/article/view/5039/pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2017-04-80

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().