Financial Depth in the WAEMU

Financial depth in Sub-Saharan Africa (SSA) has been uneven over the last two decades.

Author: Mr.Calixte Ahokpossi

Publisher: International Monetary Fund

ISBN: 9781484309391

Category: Business & Economics

Page: 23

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Financial depth in Sub-Saharan Africa (SSA) has been uneven over the last two decades. The WAEMU countries are lagging behind other regions, particularly the High Growth Non-oil Exporters (HGNOEs) group. We use two complementary methodologies to compare the two groups of countries. In a panel of 16 countries over 1997–2009, we find that the financial gap between the two groups of countries can be explained by institutional factors. In a benchmarking exercise comparing the major economy in the WAEMU (Côte d’Ivoire) with the most structurally similar in the control group (Mozambique), we show that Côte d’Ivoire underperformed relative to Mozambique and to its estimated potential. We then identify policy and institutional asymmetries between the two countries that could explain the gap in performance.
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West African Economic and Monetary Union

The financial system in the WAEMU remains largely bank-based.

Author: Patrick A. Imam

Publisher: International Monetary Fund

ISBN: 9781484348222

Category: Business & Economics

Page: 45

View: 958

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The financial system in the WAEMU remains largely bank-based. The banking sector comprises 106 banks and 13 financial institutions, which together hold more than 90 percent of the financial system’s assets (about 54 percent of GDP at end-2011). Five banks account for 50 percent of banking assets. The ownership structure of the sector is changing fast, with the rapid rise of foreign-owned (pan-African) banks. This contributes to higher competition but also rising heterogeneity in the banking system, with large and profitable cross-country groups competing with often weaker country-based (and sometime government-owned) banks. Nonbank financial institutions are developing quickly, notably insurance companies, but remain overall small. This paper presents a detailed analysis of the banking system.
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Senegal

This enhanced review of Senegal’s financial sector is one of several pilot reviews called for by the Executive Board in May 2012.

Author: Patrick A. Imam

Publisher: International Monetary Fund

ISBN: 9781475534139

Category: Business & Economics

Page: 39

View: 643

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This enhanced review of Senegal’s financial sector is one of several pilot reviews called for by the Executive Board in May 2012. The purpose of the reviews is to go beyond the traditional surveillance focus on banking system soundness and solvency by analyzing in more depth the interplay between financial development, macroeconomic and financial stability, and effectiveness of macroeconomic policies in low-income countries. Senegal is a member of the West African Economic and Monetary Union; a number of key macroeconomic and financial policies are designed and implemented at the union level. This study focuses on Senegal-specific issues. Another pilot study, to be prepared in the context of the next annual consultation on regional policies in early 2013, will focus on union-wide issues.
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Financial Depth in the WAEMU

Financial depth in Sub-Saharan Africa (SSA) has been uneven over the last two decades.

Author: Calixte Ahokpossi

Publisher:

ISBN: OCLC:1305541968

Category:

Page: 23

View: 490

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Financial depth in Sub-Saharan Africa (SSA) has been uneven over the last two decades. The WAEMU countries are lagging behind other regions, particularly the High Growth Non-oil Exporters (HGNOEs) group. We use two complementary methodologies to compare the two groups of countries. In a panel of 16 countries over 1997-2009, we find that the financial gap between the two groups of countries can be explained by institutional factors. In a benchmarking exercise comparing the major economy in the WAEMU (Côte d'Ivoire) with the most structurally similar in the control group (Mozambique), we show that Côte d'Ivoire underperformed relative to Mozambique and to its estimated potential. We then identify policy and institutional asymmetries between the two countries that could explain the gap in performance.
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Achieving Financial Stability and Growth in Africa

This book explores how the financial system should be regulated and structured to achieve the twin goals of inclusive growth and financial stability, with a focus on African low-income countries (LICs).

Author: Stephany Griffith-Jones

Publisher: Routledge

ISBN: 9781317301691

Category: Business & Economics

Page: 186

View: 631

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This book explores how the financial system should be regulated and structured to achieve the twin goals of inclusive growth and financial stability, with a focus on African low-income countries (LICs). The subject and content of this book is original in that it attempts to draw on the lessons and radical rethinking on the financial sector in developed and middle income countries, arising in the wake of the international financial crisis. It includes four in- depth country case studies, of Kenya, Ghana, Nigeria and Ethiopia, but also analyses the empirical evidence for Sub-Saharan Africa as a whole, evaluating the relevance (or not) of such major changes for the very different financial sectors and economies in low income countries. Achieving Financial Stability and Growth in Africa has major academic and policy implications, especially for low income countries, but also more generally, on broader issues. These include the desirable size of the financial sector, as well as more specific issues, such as the high cost of borrowing of small and medium enterprises in LICs, and possible measures to reduce it. Highly topical subjects like the appropriate regulation of the financial sector and management of capital flows are discussed in depth. Though drawing on comprehensive reviews of the literature, this volume has the virtue of the large comparative academic and policy experience of researchers, as well as in-depth case studies, that take account of institutional and economic features of low- income countries. Written by senior academics and policy-makers, this book is a must read for those researching or participating in the financial sectors of low-income countries, as well as in developed economies. It is also suitable for those who study political economy and public finance.
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Financial Deepening Dynamics and Implication for Financial Policy Coordination in a Monetary Union

This article aims to investigate the implication of financial deepening dynamics for financial policy coordination in the WAEMU sub-region.

Author: Christian-Lambert Nguena

Publisher:

ISBN: OCLC:1308844125

Category:

Page: 20

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This article aims to investigate the implication of financial deepening dynamics for financial policy coordination in the WAEMU sub-region. For this purpose we adopted a hypothetical-deductive theoretical approach and an empirical investigation in both static and dynamic panel data econometrics that has allowed us to identify some stylized facts on this issue and have led to the following global recommendations based on our empirical investigation: The converging dynamics is evident in the sub-region and implies that after five years, financial policies harmonization would have an optimal impact; This highlights the feasibility of common effectiveness monetary policy targeting indirectly financial depth in the sub-region; However member states should work within five years towards harmonizing cross-country differences in structural and institutional characteristics that hamper the effectiveness of financial policies. Especially they should implement a financial policy whose mainly aim to increase the level of savings rate, GDP per capita growth rate and density and reduce the level of reserves in the sub-region.
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Macro Financial Linkages in Shallow Markets

Experience from the African Department’s Pilot Countries

Author: International Monetary Fund. African Dept.

Publisher: International Monetary Fund

ISBN: 9781484370421

Category: Political Science

Page: 53

View: 422

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Experience from the African Department’s Pilot Countries
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Building Integrated Economies in West Africa

It also explains away the difference in financial depth between the WAEMU and non-oil-exporter countries. Better infrastructure allows financial institutions to reach borrowers at a lower cost, thereby encouraging more lending.

Author: Mr.Alexei P Kireyev

Publisher: International Monetary Fund

ISBN: 9781513511832

Category: Business & Economics

Page: 402

View: 340

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The West African Economic and Monetary Union (WAEMU) has a long and varied history, and this book examines how the WAEMU can achieve its development and stability objectives, improve the livelihood of its people, and enhance the inclusiveness of its economic growth, all while preserving its financial stability, enhancing its competitiveness, and maintaining its current fixed exchange rates.
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West African Economic and Monetary Union WAEMU

Despite significant financial sector development in recent years5, financial depth, breadth, and access remain low. The financial sector remains bank-centered and, while financial depth is broadly in line with WAEMU countries' ...

Author: International Monetary Fund. African Dept.

Publisher: International Monetary Fund

ISBN: 9781484341698

Category: Business & Economics

Page: 87

View: 103

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This West African Economic and Monetary Union (WAEMU) IMF staff report focuses on common policies for member countries. The region continued to experience a strong upswing in 2013, and the immediate outlook is for further vigorous growth and moderate inflation. Delays in implementing reforms, at both the national and regional levels, are the principal medium-term risk. It highlights that with continued strong growth projected for the region, countries are encouraged to seek opportunities to strengthen fiscal sustainability while maintaining public investment efforts.
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Sub Saharan Africa

This book argues that building efficient and sound financial sectors in SSA countries will improve Africa's economic prospects.

Author: Ms. Catherine A. Pattillo

Publisher: International Monetary Fund

ISBN: 9781451950977

Category: Business & Economics

Page: 57

View: 471

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Financial sectors in low-income sub-Saharan Africa (SSA) are among the world's least developed. In fact, assets in most low-income African countries are smaller than those held by a single medium-sized bank in an industrial country. The absence of deep, efficient financial markets seriously challenges policy making, hinders poverty alleviation, and constrains growth. This book argues that building efficient and sound financial sectors in SSA countries will improve Africa's economic prospects. Based on a review of the key features of financial systems, it discusses the main obstacles and challenges that financial structures pose for SSA economies and recommends steps that could address major shortcomings in implementing the reform agenda.
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