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By investigating factors influencing interest margins adjustment, this paper aims to provide some answers on how to improve the efficiency of the Tunisian banking system. Focusing on different theoretical views on the determinants of banks intermediation margins using a quite representative sample observed between 1999 and 2014, we estimate an augmented model using the system GMM estimator assuming the existence of adjustment costs. Estimations results and robustness checks show that reducing intermediation margins of Tunisian banks is fundamentally a matter of improving cost efficiency, scale economies and competitiveness. Considering the highly distressed economic and financial context in which Tunisian banks operate since 2011, we think that improving bank efficiency and credit access in Tunisia is closely related to the capacity of the government and the regulatory authority to enforce urgent strategic reforms in order to consolidate the banking system and to improve its competitiveness. [ABSTRACT FROM AUTHOR]

Copyright of African Development Review / Revue Africaine de Développement is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper reviews the broad structural shifts in banks and other financial institutions in Kenya in the face of globalization. It is found that Kenya has moved into universal banking, reflected by the gradual elimination of 'specified' non-bank financial institutions since 1994 and the increased share of net commissions and fees in the banks' total income, from 10 per cent in 1998 to 21 per cent in 2007. The evidence suggests that the sector experienced reduced concentration and presumably more competition during 1998-2007. Further, it is found that small banks are the least competitive (most concentrated), followed by large banks and then medium-sized banks. [ABSTRACT FROM AUTHOR]

This paper empirically investigates the relationship between financial development and economic growth in the North Africa region, using a panel regression and different indicators of financial development. We find that the relation depends on the type of the indicator of financial development. In fact, while both financial institutions and markets in Morocco and Tunisia have a positive effect on the economic growth, only the financial markets in Egypt will improve economic growth by increasing the supply of financial services. For Algeria, the banking system has a positive effect on economic growth. [ABSTRACT FROM AUTHOR]

The paper empirically investigates the degree of bank competition and intermediation efficiency in Ghana. The evidence obtained suggests a non-competitive market structure in the Ghanaian banking system, which hampers financial intermediation. The study also finds that Ghanaian banks are monopolistically competitive. It is argued that the structure, as well as the other markets characteristics, constitutes an indirect barrier to entry thereby shielding the large profits in the Ghanaian banking system. Further, it is argued that policies that encourage and stimulate greater consolidation in the financial sector would go a long way to enhance competition among banks and improve efficiency and profitability. [ABSTRACT FROM AUTHOR]

Since 1991, Tanzania has made important improvements in reforming its financial sector, dismantling the state-dominated banking sector and allowing foreign bank entry. Despite this, the banking industry is still concentrated with low accessibility to financial services. Large foreign banks dominate the financial landscape, preventing competitive dynamism to permeate the sector. This paper analyses the competitive nature of the Tanzanian banking industry from 2004 to 2008. Utilizing a rich bank level data set, we employ the Panzar-Rosse methodology to compute the competitive index, taking into account risk, efficiency, regulatory and macroeconomic factors. The results show that banks in Tanzania earned their income under conditions of oligopolistic conduct. Moreover, the competitive index derived from an interest revenue equation was not significantly different from that obtained using an aggregate revenue measure. This suggests that the degree of contestability from traditional intermediation activities approximates overall bank behaviour. The overall message is that greater market contestability can be achieved by adopting measures aimed at stimulating competitiveness in the banking sector, including consolidating gains on the macroeconomic front and allowing more foreign bank entry so as to increase the spread of banking services. [ABSTRACT FROM AUTHOR]

Copyright of African Development Review / Revue Africaine de Développement is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Mutual guarantee associations (MGAs) can be a viable solution to the problem of access to credit from banks for those small entrepreneurs who cannot offer sufficient collateral, in particular for artisans. After providing a general description of an MGA, the most successful model in Europe, both in number and in volume of guarantees, is considered and its factors of success are analysed. Findings from Europe as well as from some developing countries are presented. Some applications of the MGA scheme in a few African countries are described and potential ways to improve the current situation of those MGAs are highlighted. An MGA is an association comprised of entrepreneurs who join together to create an organization which establishes a dialogue with banks. The association plays the role of an intermediary between artisans and banks: small- and micro- enterprises (SMEs) join the association to obtain credit from banks and the association negotiates with banks to secure loans for its members. Successful MGAs strengthen private initiatives and SMEs, which is widely regarded as a key ingredient to development and poverty-alleviation in most countries. They may become strong entities which can deal with banks on an equal level, helping SMEs gain access to credit that is normally unavailable. [ABSTRACT FROM AUTHOR]