Abstract: Commercial banks in Nigeria adopted many strategies
to attract fresh deposits including the use of high deposit rate.
However, pricing of banking services moved in favor of the banks at
the expense of customers, resulting in their seeking other investment
alternatives rather than saving their money in the bank. Both deposit
and lending rates were greatly influenced by the Central Bank of
Nigeria (CBN) decision on interest rate. Therefore, commercial bank
effort to attract deposits via manipulation of her rates was greatly
limited, otherwise the banks will be giving out more than it earned.
The study aimed at examining the relationship between interest rate
and fixed fund deposit of commercial banks, how policy-controlled
interest rate affected commercial bank’s fixed fund deposit The
researcher employed ordinary least square technique, using, multiple
linear regression, unrestricted vector auto-regression, correlation
matrix test, granger causality and impulse response graph in the
analysis. Commercial bank’s interest rates affected commercial
bank’s fixed fund deposit significantly while policy-controlled
interest rate did not significantly transmit through the commercial
bank’s interest rates to affect fixed fund deposit. While commercial
banks seek creative ways to expand their fixed fund deposit, policy
authorities in Nigeria should better coordinate interest rate fluctuation
and induce competition in the entire financial sector.
Abstract: Three service providers in competition, try to optimize
their quality of service / content level and their service access
price. But, they have to deal with uncertainty on the consumers-
preferences. To reduce their uncertainty, they have the opportunity
to buy information and to build alliances. We determine the Shapley
value which is a fair way to allocate the grand coalition-s revenue
between the service providers. Then, we identify the values of β
(consumers- sensitivity coefficient to the quality of service / contents)
for which allocating the grand coalition-s revenue using the Shapley
value guarantees the system stability. For other values of β, we prove
that it is possible for the regulator to impose a per-period interest rate
maximizing the market coverage under equal allocation rules.