Topic
Financial sector development
About: Financial sector development is a research topic. Over the lifetime, 1674 publications have been published within this topic receiving 90787 citations.
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17 Jan 2019
TL;DR: The gradualist approach that Ethiopia followed in reforming its financial sector seems to have borne fruit as no single commercial bank has gone bust so far, unlike the case in neighbouring countries as mentioned in this paper.
Abstract: Financial sector development has played a key role in Ethiopia’s economic development, particularly since the launching of the first Five-year Growth and Transformation Plan in 2010. The gradualist approach that Ethiopia followed in reforming its financial sector seems to have borne fruit as no single commercial bank has gone bust so far, unlike the case in neighbouring countries. Though Ethiopia’s financial sector growth was following output growth in the first two phases, government has started to play a key role in accelerating the sector’s growth through active interventions, such as encouraging branch expansion, and introduction of new financial instruments such as the Grand Ethiopian Renaissance Dam Bond, a housing saving scheme, and the private pension fund. Consequently, the number of bank branches expanded from 681 to 4,257 between 2010 and 2017 while the deposit-to-GDP ratio went up from 25.9 per cent to 31.4 per cent in the same period.
1 citations
04 Oct 2016
1 citations
TL;DR: In this article, the authors investigated the change in the relationship between economic growth and financial development as ECOWAS economies grow over the period 1991-2017 and found that financial development plays a positive and significant role in economic growth process regardless of the level of economic development.
Abstract: This paper empirically investigates the change in the relationship between economic growth and financial development as ECOWAS economies grow over the period 1991–2017 The methodology of analysis is the quantile regression, which allows determining the impact of financial development at different levels of economic growth Financial development is measured by private sector credit to GDP and liquid liabilities to GDP The results indicate that financial development plays a positive and significant role in economic growth process regardless of the level of economic development The size of the impact of financial development depends on its measure as well as the specification of the model Our findings also indicate that the impact of finance increases with the level of economic growth between the 10th and the 90th percentile Moreover, when country fixed effects are taken into consideration, the impact of finance rises significantly at the lowest percentiles of economic development, while it remains relatively stable at medium and high levels of economic development Finally, the findings point out the absence of linearity in the linkage between finance and economic growth
1 citations
10 Jul 2019
TL;DR: In this article, the authors employed Error Correction Model (ECM) and Cointegration analysis to study the relationship between financial sector development and savings mobilization in Nigeria 1986 to 2017.
Abstract: This study employs Error Correction Model (ECM) and Co-integration analysis to study the relationship between financial sector development and savings mobilization in Nigeria 1986 to 2017. As expected from a developing country like Nigeria, a short-run positive relationship is observed between the Nigerian stock market and crude oil prices and the direction is from crude oil prices to the Nigerian stock market but not the other way round. The short run, interest rate earning has a positive and significant impact on domestic savings while the other variables have no significant impact domestic savings in Nigeria. Government should therefore consolidate on past financial sector reforms to improve domestic saving mobilization to reduce the dependence of Nigeria on foreign savings to finance domestic investment.
1 citations
Posted Content•
TL;DR: In this article, the authors proposed that the proportion of individuals with access to formal financial services including credit, savings, and insurance services is critical for improving household welfare by spurring economic activity and helping manage economic shocks.
Abstract: A well-functioning financial sector is critical for efficient resource allocation leading to increased productivity, greater investment, and higher overall levels of economic growth. This is particularly critical in Iraq, where years of political instability and violence have impeded the development of a robust private sector, decimated infrastructure and institutions, and caused serious employment challenges. The proportion of individuals with access to formal financial services including credit, savings, and insurance services is critical for improving household welfare by spurring economic activity and helping manage economic shocks. Financial inclusion positively impacts on macroeconomic stability. The extent of financial intermediation causally impacts growth, mostly through lower transaction costs and better distribution of capital and risk across the economy. Microfinance has in recent years become an important mechanism to promote financial inclusion and economic development in Iraq. Microfinance institutions (MFIs) have emerged as credible sources of financing for low income households and microenterprises, both underserved by conventional banks.
1 citations