Title
Does Intellectual Capital Foster Deposit Growth in Banking System? Empirical Evidence from a Developing Economy
Authors
Abstract
Objective: This study investigates the relationship between intellectual capital (IC) efficiency and deposit growth in Vietnamese banks. IC refers to intangible knowledge-based assets like employee competencies, processes, and customer relationships.
Methodology: The paper analyzes a sample of 26 commercial banks in Vietnam over the period 2006-2020 and using the Value-added Intellectual Coefficient model for measuring IC efficiency.
Findings: The results indicate a positive influence of overall IC on deposit growth. However, the effect of individual IC components varies, with human and structural capital enhancing deposits while capital employed efficiency reducing deposits. The findings suggest smaller banks leverage IC more effectively for deposit mobilization compared to larger banks.
Implications: The research offers insights for bank executives on utilizing IC to attract deposits and for policymakers on regulating IC investment. Practical strategies for developing IC and theoretical directions for future research are discussed.
Novelty: The study contributes by providing the first empirical evidence on the linkage between IC and deposit growth in banks.
Keywords
Knowledge-based Management; Intellectual Capital; Deposit Growth; Banking Industry; Developing Country.
Classification-JEL
G21, G28, O31
Pages
93-115