Access to financial services in Zambia
AbstractDespite the deep financial sector reforms undertaken in Zambia in the early 1990s, the expected benefits of establishing a market-based banking system has not materialized. In 2005 the banking system continued to be small and underdeveloped. Credit to the private sector by banks represented only 8 percent of GDP in 2005, which is slightly lower than the level registered in 1990. As in the early 1990s, only large corporations and a few small- and medium-size enterprises have access to credit in 2006. Moreover, less than 8 percent of Zambia's adult population had a bank account in 2005. And despite the open door policy to foreign financial institutions, which has been in place since Zambia's independence, only a few new banking products have been introduced by foreign banks to serve the needs of households and firms. This paper analyzes the factors that have prevented the development of a large and inclusive banking system in Zambia and highlights possible actions that may help improve access to finance in Zambia in both the short and long terms.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 4061.
Date of creation: 01 Nov 2006
Date of revision:
Banks&Banking Reform; Financial Intermediation; Financial Crisis Management&Restructuring; Corporate Law; Banking Law;
This paper has been announced in the following NEP Reports:
- NEP-AFR-2006-11-18 (Africa)
- NEP-ALL-2006-11-18 (All new papers)
- NEP-BAN-2006-11-18 (Banking)
- NEP-DEV-2006-11-18 (Development)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- de la Torre, Augusto & Gozzi, Juan Carlos & Schmukler, Sergio L., 2007. "Innovative experiences in access to finance : market friendly roles for the visible hand ?," Policy Research Working Paper Series 4326, The World Bank.
- Enrica Detragiache & Poonam Gupta & Thierry Tressel, 2006. "Foreign Banks in Poor Countries," IMF Working Papers 06/18, International Monetary Fund.
- Anjali Kumar, 2005. "Access to Financial Services in Brazil," World Bank Publications, The World Bank, number 13821, October.
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