Banking market integration in the SADC countries: Evidence from interest rate analyses
Date
2011
Authors
Aziakpono M.J.
Kleimeier S.
Sander H.
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
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.
Description
Keywords
Banking market integration, Interest rate pass-through, Monetary integration, Principle components, Southern african development community, banking, central bank, economic integration, financial market, interest rate, lending behavior, principal component analysis, retailing, South Africa
Citation
Applied Economics
44
29
http://www.scopus.com/inward/record.url?eid=2-s2.0-80051962935&partnerID=40&md5=7757bb374236a477c8bde3f26e00beec
44
29
http://www.scopus.com/inward/record.url?eid=2-s2.0-80051962935&partnerID=40&md5=7757bb374236a477c8bde3f26e00beec