What influences banks' lending in Sub-Saharan Africa?

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Title:	What influences banks' lending in Sub-Saharan Africa?
Author:	Amidu, Mohammed
Year:	2014
Issue:	267
Pages:	44
Language:	English
Series:	AERC research paper
City of publisher:	Nairobi
Publisher:	African Economic Research Consortium
ISBN:	9789966023421
Geographic term:	Subsaharan Africa
Subjects:	banks loans credit financial policy
External links:	http://publication.aercafricalibrary.org/handle/123456789/152 https://www.asclibrary.nl/docs/395453216.pdf
Abstract:	Banking literature, especially those on the developing economies, has not emphasized the link between macroeconomic activities, monetary policy, bank market structure, bank specific condition, and the supply of bank loans. This study employs dynamic panel data techniques to investigate the broad determinants of lending behaviour of 264 banks across 24 sub-Saharan Africa (SSA) countries. The results show that the market structure of banks influences credit delivery in SSA in an environment where the financial sector is reformed and banks are allowed to operate freely. More so, there is evidence to suggest a link between bank credit and the financial strength of the banks. The study further reveals that, regulatory initiative, which restricts banking activities, imposes severe entry requirements and requires high regulatory capital, and influences banks' decisions to supply loans.