engleski

Demand Deposit Projection Model: Case of Croatia

The aim of this paper is the demand deposit projection model development and testing. The model would project the movement of aggregate demand deposits for the following year in Croatia. This model is a multiple regression model where the dependent variable is the movement of demand deposits, while explanatory variables are expected currency exchange rate and gross domestic product. The regression effects will be projected elasticity values of explanatory variables in regard to the movement of demand deposits. Model for projection of demand deposits movement represents solid solution in the period where there is a stable growth. It is not suited to use in periods of high deviations which occurred after 2007.

Demand deposit; Projection model; Croatia; Loan potential.

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