Banking Sector Integration and Competition in Cemac

27 Pages Posted: 12 Jan 2007

See all articles by Samer Y. Saab

Samer Y. Saab

International Monetary Fund (IMF)

Jerome Vacher

International Monetary Fund (IMF)

Date Written: January 2007

Abstract

This paper considers the extent of retail banking integration in the Communauté Economique et Monétaire d'Afrique Centrale (CEMAC) and the level of bank competition at the regional level. Using a mix of quantitative and qualitative indicators, the paper finds some evidence of price convergence in average interest rate spreads. However, this observed fact is not supported by an increase in cross-border flows in retail loans and deposits, and price convergence may merely reflect excess liquidity in the region. Other data also indicate that bank competition within the CEMAC as a region is limited, complementing the findings on integration. Addressing shortfalls in legal and regulatory frameworks, infrastructure, and markets would facilitate integration.

JEL Classification: C35, D59, E44, G21, G32

Suggested Citation

Saab, Samer Y. and Vacher, Jerome, Banking Sector Integration and Competition in Cemac (January 2007). IMF Working Paper No. 07/03, Available at SSRN: https://ssrn.com/abstract=956768

Samer Y. Saab

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Jerome Vacher (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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