Banking Efficiency and Financial Development in Sub-Saharan Africa

This study assesses the determinants of banking system efficiency in sub-Saharan Africa (SSA) and asks what, besides the degree of efficiency, explains the low level of financial development in the region. It uses stochastic frontier analysis to measure efficiency and a generalized method of moments system to explain financial development. SSA banks are found to be generally cost-efficient, but nonperforming loans undermine efficiency, which suggests that improvement in the regulatory and credit environments should improve efficiency. The political and the economic environment have held back financial development in SSA.

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Year of publication:	2010-06-01
Authors:	Kablan, Sandrine
Institutions:	International Monetary Fund (IMF)
Subject:	Banking systems \| Banks \| Economic models \| Financial management \| banking \| banking system \| foreign banks \| foreign bank \| financial institutions \| financial services \| financial sector \| bank ownership \| banking sector \| banking technology \| bank performance \| bank size \| domestic banks \| bank entry \| banking supervision \| banking reforms \| banking services \| market structure \| bank assets \| macroeconomic stabilization \| bank operations \| services providers \| return on equity \| macroeconomic stabilization policy \| structural adjustment \| bank behavior \| banking crises \| foreign ownership \| working capital \| bank regulation \| banking units \| automated teller \| bank lending \| banking product \| bank capitalization \| information services \| bank_size \| increasing costs \| banking system assets \| bank privatization \| banking crisis \| technological progress \| prudential regulations \| bank credit \| services industry \| bank deposits \| bank failures \| bank use

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Extent:	application/pdf
Series:	IMF Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	The text is part of a series IMF Working Papers Number 10/136 2 pages long
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008542987