Information, Institutions and Banking Sector Development in West Africa
AbstractUsing a new panel dataset for banks in eight West African countries, we explore the factors that exacerbate or alleviate excess liquidity, and the factors that promote or retard the rate of growth of banks' assets. Loan default rates in the region are high, and variations in the rate impact on liquidity and asset growth. However, the size of this effect is very sensitive to bank age. Some types of improvement in the quality of governance reduce excess liquidity and promote asset growth. However, the impact of other types of improvement, particularly with regard to corruption, is ambiguous. We uncover evidence that provides an explanation for this ambiguity.
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Bibliographic InfoPaper provided by University of Otago, Department of Economics in its series Working Papers with number 0902.
Length: 26 pages
Date of creation: Jan 2009
Date of revision: Jan 2009
Africa; Banking; Default; Institutions; Liquidity;
Other versions of this item:
- Panicos Demetriades & David Fielding, 2012. "Information, Institutions, And Banking Sector Development In West Africa," Economic Inquiry, Western Economic Association International, vol. 50(3), pages 739-753, 07.
- Panicos Demetriades & David Fielding, 2009. "Information, Institutions and Banking Sector Development in West Africa," Discussion Papers in Economics 09/4, Department of Economics, University of Leicester.
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
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