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Interest Rate Spreads in English-Speaking African Countries, Joe Crowley

This paper examines interest rate spreads in English-speaking African countries. Higher spreads were found to be associated with lower inflation, a greater number of banks, and greater public ownership of banks. Higher deposit interest rates were found to be associated with lower interest rate spreads, but higher net interest margins. A large increase in spreads in the late 1980s and 1990s may be explained by a strengthening of financial sector supervision. Limited data suggested that poor governance, weak regulatory frameworks and property rights, and higher required reserve ratios are associated with higher spreads
Table Of Contents
Contents; I. Introduction; II. Background and Theory; III. Data and Countries Analyzed; IV. Factors Affecting Spreads; A. Time; B. Competition; C. Size of the economy; D. Size of the banking sector; E. Operating costs; F. Loan quality; G. Capitalization; H. Inflation; I. Changes in inflation; J. Broad money growth; K. Interest rates; L. Exchange rates and external sector; M. Public sector involvement; N. Foreign involvement; O. Governance; P. Required reserves; V. Multivariate Results; A. Short term results; B. Long term results; VI. Effects of Interest Rate Spreads; A. Growth; B. Investment
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (36 p.)
Specific Material Designation
Form Of Item

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