Nouvelles exigences en capital des banques de l'UEMOA, concentration bancaire et coût du crédit au Togo
[New capital requirements of WEAMU banks, banking concentration and cost of crédit in Togo]
This paper analyzes the potential effects of new capital requirements of banks in the WAEMU countries on the cost of credit in Togo. The influence on lending rates is examined through the channel of the of banking concentration. We show from generalized additive models (GAM) and generalized method of moments (GMM) in dynamic panel models that banking concentration is associated with higher lending rates. In other words, the more the banking activity is concentrated in a small number of banks, the more the cost of credit is high. Without compromising the expected benefits of the new minimum capital requirements, the results support the hypothesis that they can cost to the economies of the union by strengthening the oligopolistic nature of the banking market and by increasing the cost of credit which is harmful to the economic growth. It is therefore necessary to support the new capital requirements with measures that can increase competition between banks and and promote the entry of new banks in the market.
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