Search Results

You are looking at 1 - 7 of 7 items for :

  • "banking systems in SSA" x
Clear All
Mr. Montfort Mlachila and Mr. Masafumi Yabara
Many countries in sub-Saharan Africa (SSA) have seen accelerated growth for an extended period of time since the mid-1990s, making a clear break with their long stagnant growth during the previous two decades. That said, the region faces significant challenges over the medium to long term, including reducing poverty, overcoming infrastructure bottlenecks, enhancing productivity and skill levels, and improving the business climate, among others. The banking sector remains underdeveloped in SSA, thus reducing its contribution to growth, although its limited integration with global financial markets helped countries weather adverse effects of the global financial crisis. It is imperative that the banking sector plays a more active role in SSA, in order to achieve sustainable growth led by the private sector. This paper, building on the recent literature on SSA, discusses the main features of the region’s growth and macroeconomic performance in recent years and the outlook for the coming years; it then reviews the main features of SSA banking systems and how they were affected by the global economic crisis, while flagging some factors that could influence financial sector developments in SSA in the period ahead.
Mr. Montfort Mlachila, Seok Gil Park, and Mr. Masafumi Yabara

institutions ( Čihák et al., 2012 ). Figure 8 . Financial Depth and Access to Financial Services Source: World Bank, World Development Indicators and Global Fiancial Development Database. Note: Zimbabwe is excluded from Panels A and B. High-income countries are excluded from Panel C. LICs = low-income countries; SSA = sub-Saharan Africa. Most banking systems in SSA are small in absolute and relative size. 12 They are characterized by low loan-to-deposit ratios ( Figure 9 , Panel A) and, as a corollary, large shares of assets held in the form of government

Mr. Mauro Mecagni, Daniela Marchettini, and Mr. Rodolfo Maino

Beck and Cull (2013) , banking in SSA has undergone dramatic changes over the past 20 years. Financial liberalization and related reforms, upgrades in institutional and regulatory capacity, and more recently the expansion of cross-border banking activities with the rapid development of pan-African banking group networks have significantly changed the African banking and financial landscape. Once dominated by state-owned institutions and distorted in their operations by restrictive regulations, banking systems in SSA are now deeper and more stable, and the incidence

Mr. Mauro Mecagni, Daniela Marchettini, and Mr. Rodolfo Maino
Banking in SSA has undergone very significant changes over the last two decades. Financial liberalization and related reforms, upgrades in institutional and more recently the expansion of cross-border banking activities and the rapid development of Pan-African banking groups are signaling greater financial integration and significant changes in the African banking and financial landscape. Nonetheless, excess liquidity in many countries reflects limited lending opportunities and, despite improvements, asset quality and provisioning remain comparatively low. Dollarization has also been a persistent characteristic in several natural resource-dependent economies. This paper discusses key stylized facts and trends of banking development in SSA, looking at a variety of dimensions such as size, depth, soundness, and efficiency. It also assess the rapid expansion of pan-African banking groups, which have overtaken the role of the European and U.S. banks that had traditionally dominated banking activities in SSA, creating significant cross-border networks and becoming the largest participants in new syndicates and large bilateral loans to finance infrastructure development.
Ms. Catherine A Pattillo, Ms. Anne Marie Gulde, Mr. Kevin J Carey, Ms. Smita Wagh, and Mr. Jakob E Christensen

banking systems are exposed. Also, while banking systems are profitable, they are less efficient than elsewhere in the world . Banking Sector Soundness The overall soundness of banking systems in SSA is now generally stronger than in the 1990s, when the continent experienced a number of banking crises. The share of nonperforming loans (NPLs) in total loans was over 30 percent in the early 1990s but has fallen since then in most countries as a result of resolution measures, improved macroeconomic conditions in the region, and reduced government interference with

Mr. Magnus Saxegaard
This paper examines the pattern of excess liquidity in sub-Saharan Africa and its consequences for the effectiveness of monetary policy. The paper argues that understanding the consequences of excess liquidity requires quantifying the extent to which commercial bank holdings of excess liquidity exceed levels required for precautionary purposes. It proposes a methodology for measuring this quantity and uses it to estimate a nonlinear structural VAR model for the CEMAC region, Nigeria and Uganda. The study suggests that excess liquidity weakens the monetary policy transmission mechanism and thus the ability of monetary authorities to influence demand conditions in the economy.
Mr. Magnus Saxegaard

market and open market-type monetary policy instruments, has forced central banks to rely on increases in the rule-based instruments, such as the reserve requirement, to combat inflation. This is particularly true given the move away from other rule based instruments such as interest rate controls. Second, the increasing concern with maintaining the stability of financial system is likely to have caused increases in the required reserve ratio for prudential reasons. 10 Thirdly, it reflects the development of a modern fractional reserve banking system in SSA countries