Bank Efficiency in Sub-Saharan African Middle Income Countries / Chuling Chen.

Format:

Book

Government document

Author/Creator:

Chen, Chuling.

Contributor:

International Monetary Fund.

Series:

IMF Working Papers; Working Paper ; No. 2009/014

IMF Working Papers

Language:

English

Subjects (All):

Banks and banking--Africa, Sub-Saharan.

Banks and banking.

Economic development--Africa, Sub-Saharan.

Economic development.

Physical Description:

32 p. : ill.

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2009.

Language Note:

English

Summary:

We use bank level data to study the efficiency of banks in Sub-Saharan African middle-income countries and provide possible explanations for the difference in the efficiency levels of banks. We find that banks, on average, could save 20-30 percent of their total costs if they were operating efficiently, and that foreign banks are more efficient than public banks and domestic private banks. Among the factors that could affect the efficiency levels are macroeconomic stability, depth of financial development, the degree of market competition, strong legal rights and contract laws, and better governance, including political stability and government effectiveness. Our findings point to the importance of policies that aim to build stronger institutions, promote more competition, and improve governance.

Contents:

Intro

Contents

I. Introduction

II. Literature Review

III. Overview of the Banking Sectors

IV. Efficiency Analysis

A. Methodology

B. Data and Results

V. Determining Efficiency Factors

A. Bank-Specific Factors

B. Macroeconomic Conditions

C. Market Structure

D. Legal Framework

E. Political Environment

F. Robustness Checks

VI. Conclusion

Figures

Figure 1. Sub-Saharan African Middle-Income Countries' Financial Development

Indicators, 2000-7

Figure 2. Banking Sector Concentration: Middle-Income Countries, 2000-06

Figure 3. Foreign Ownership: Selected Sub-Saharan African Middle-Income Countries

Figure 4. Efficiency Estimates by Country

Figure 5. Efficiency Estimates by Bank Ownership

Tables

Table 1. Summary Statistics of Major Variables Used in Cost Efficiency Estimates

Table 2. Correlation Between Major Variables in Cost Efficiency Estimates

Table 3. Cost Efficiency Estimation

Table 4. Efficiency Estimates

Table 5. H-statistics for Sub-Saharan African Middle-Income Countries

Table 6. Correlation Between Cost Efficiency and Determinants

Table 7. Second Stage Regression

Table 8. Second Stage Regression-Legal Framework and Political Environment

Table 9. Second Stage Regression (South Africa excluded)

Table 10. Second Stage Regression-Legal Framework and Political Environment (South Africa excluded)

Table 11. Second Stage Regression-Macroeconomic Conditions and Financial Depth

References.

Notes:

Bibliographic Level Mode of Issuance: Monograph

Includes bibliographical references.

Description based on print version record.

ISBN:

9786612842368

9781462333585

1462333583

9781282842366

1282842366

9781451871616

1451871619

9781451984248

1451984243

OCLC:

436305761