@workingpaper{Asongu2012b_30,
title = {African Financial Development Dynamics: Big Time Convergence},
author = {Simplice A Asongu},
editor = {African 2012 Governance and Development Institute WP/12/003},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/African-financial-development-dynamics.-Big-time-convergence.pdf},
year = {2012},
date = {2012-01-01},
abstract = {Purpose - Assessment of African financial development dynamic convergences in money,
credit, efficiency and size.
Design/Methodology - The empirical evidence is premised on 11 homogenous panels based on
regions (Sub-Saharan and North Africa), income-levels (low, middle, lower-middle and uppermiddle),
legal-origins (English common-law and French civil-law) and religious dominations
(Christianity and Islam). We examine convergence in financial intermediary dynamics of depth,
efficiency, activity and size.
Findings - Findings suggest that countries with small-sized financial intermediary depth,
efficiency, activity and size are catching-up countries with large-sized financial intermediary
depth, efficiency, activity and size respectively. We also provide the speeds of convergence and
time necessary to achieve a full (100%) convergence.
Practical implications - The presence of strong links among African banking sectors may
present little opportunity for portfolio diversification. The convergence patterns show positive
steps towards regional integration. As a policy implication, African governments should not
relent in structural and institutional reforms.
Originality/value - It is the first critical assessment of convergence in financial intermediary
development dynamics in the African continent.},
keywords = {Convergence; Policy Coordination; Banking; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}