ABSTRACT

Sub-Saharan Africa (SSA) has one of the highest lending-deposit spreads. This study addresses a research gap by examining whether financial market structure explains the sub-continent’s high spread. The paper develops an original theoretical model. This is subsequently examined empirically. In and of itself, the study finds that financial market structure has no effect on the spread. However, it has a positive impact when it interacts with the differential between bank and stock market returns. Similarly, banking-sector concentration and the credit-deposit quotient increase the spread. In contrast, the following have a negative influence on the spread, namely: lagged degree of credit market equilibrium, government size and savings rate.

摘要

撒哈拉以南非洲 (SSA) 是贷存利差最高的地区之一。本研究通过检验金融市场结构是否可以解释次大陆的高利差来填补研究空白​​。该论文开发了一个原始的理论模型。这随后被实证检验。就其本身而言，研究发现金融市场结构对价差没有影响。然而，当它与银行和股票市场回报之间的差异相互作用时，它会产生积极的影响。同样，银行业集中度和信用存款商数会增加利差。相比之下，以下因素对利差有负面影响，即：信贷市场均衡的滞后程度、政府规模和储蓄率。