## Banking Efficiency and Financial Development in Sub-Saharan Africa

_IMF Working Papers, June 1, 2010_

## Source details

**Canonical URL:** [Banking Efficiency and Financial Development in Sub-Saharan Africa](https://www.imf.org/en/publications/wp/issues/2016/12/31/banking-efficiency-and-financial-development-in-sub-saharan-africa-23929)

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## Bibliographic details
- Authors: Sandrine Kablan
- Published: June 1, 2010
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781455201198.001

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### Summary and key findings
- The study assesses determinants of banking system efficiency in sub-Saharan Africa (SSA) and investigates what, besides the degree of efficiency, explains the low level of financial development in the region.
- SSA banks are found to be generally cost-efficient.
- Nonperforming loans undermine efficiency, suggesting that improvement in the regulatory and credit environments should improve efficiency.
- The political and the economic environment have held back financial development in SSA.

### Methodology
- Efficiency measurement: stochastic frontier analysis.
- Financial development explanation: generalized method of moments system.

### Policy implications and recommendations
- Improve the regulatory environment to enhance bank efficiency.
- Strengthen the credit environment to reduce nonperforming loans and thereby improve cost-efficiency.
- Address political and economic constraints that impede financial development in SSA.

### Publication and metadata
- Author: Sandrine Kablan
- Publication date: June 1, 2010
- Series: Working Paper No. 2010/136
- Issue: 136
- Volume: 2010
- Pages: 25
- DOI: https://doi.org/10.5089/9781455201198.001
- Stock No: WPIEA2010136
- ISBN: 9781455201198
- ISSN: 1018-5941
- Accessed (citation preview): 9/17/2026

*Banking Efficiency and Financial Development in Sub-Saharan Africa — IMF Working Paper. Canonical URL: https://www.imf.org/en/publications/wp/issues/2016/12/31/banking-efficiency-and-financial-development-in-sub-saharan-africa-23929*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/banking-efficiency-and-financial-development-in-sub-saharan-africa-23929_