Banking market integration in the SADC countries: Evidence from interest rate analyses

Aziakpono M.J. ; Kleimeier S. ; Sander H. (2011)

Article

This study investigates the state, development and drivers of banking market integration in the member countries of the Southern African Development Community (SADC). A Principal Component Analysis (PCA) of national retail interest rates indicates increasing integration in loan and deposit markets. These integration processes are not developing uniformly and we can identify a convergence club. When investigating the interest rate pass-through from central bank onto retail rates for this convergence club, we find both, genuine and monetary-integration driven processes though the latter dominate. We thus conclude that a selective expansion of the Common Monetary Area (CMA) is possible. © 2012 Taylor & Francis.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/16706
This item appears in the following collections: