Banks; Depository Institutions; Micro Finance Institutions; Mortgages
The study investigated the technical efficiency of the commercial banks in Zimbabwe during the period 2009-2015. The study entailed the decomposition of the technical efficiency into pure technical and scale efficiency to understand the sources of the technical inefficiency of the commercial banks in Zimbabwe.
Financial globalisation and financial innovation have increased most banks’ appetite for risk and therefore engendered financial fragility in the financial system. This paper examines the relationship between regulatory bank capital adequacy and the business cycle in South Africa using Vector error correction model (VECM). This paper employed quarterly data from South Africa Reserve Bank (SARB) for the period 1990 to 2013.
The study was meant to evaluate the cost and revenue efficiency of the Zimbabwean banking sector during the period 2009-2014. The study employed the Data Envelopment Analysis and the Tobit Regression methods. The estimation of cost and revenue efficiency shows that revenue and cost efficiency increased during the period 2009-2012. This coincided with high positive growth rates and economic stability. Efficiency declined in 2013-14 as a result of government controls on banking sector pricing and general decline in economic activity.
The study empirically establishes the causal relationship between financial innovation and economic growth in SADC. Using an Autoregressive Distributed Lag (ARDL) Model, estimated by Pooled Mean Group and Dynamic Fixed Effects, the study finds that financial innovation has a positive relationship to economic growth in long run for SADC. The long run estimations, however, show existence of a weak relationship. Introducing a direct measure of financial innovation buttresses the role of financial innovation in growth in SADC.
For economic transactions, including debt transactions, to occur in a market system, property rights are essential. The literature has focussed on finding empirical proof of the effect of property right regimes, noting differences between de jure and de facto property rights. Yet most of these studies focus on macroeconomic outcomes, like economic growth and public expenditure.
Although the financial sector of Africa has witnessed massive reforms to enhance its ability to support economic activities, reduce poverty and lower income inequality, Africa remains the poorest region and the second most unequal region in the world after Latin America. Despite these established facts, little empirical research exists on the relationship between financial development and income inequality in Africa.