Banking market integration in the SADC countries: evidence from interest rate analyses
AbstractThis study investigates the state, development and drivers of banking market integration in the member countries of the Southern African Development Community (SADC). A Principal Component Analysis (PCA) of national retail interest rates indicates increasing integration in loan and deposit markets. These integration processes are not developing uniformly and we can identify a convergence club. When investigating the interest rate pass-through from central bank onto retail rates for this convergence club, we find both, genuine and monetary-integration driven processes though the latter dominate. We thus conclude that a selective expansion of the Common Monetary Area (CMA) is possible.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 44 (2012)
Issue (Month): 29 (October)
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Other versions of this item:
- Aziakpono, Meshach & Kleimeier, Stefanie & Sander, Harald, 2007. "Banking Market Integration in the SADC Countries: Evidence from Interest Rate Analyses," Research Memoranda 047, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization.
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