Financial liberalisation and banking crises in sub-Saharan Africa

Research output: Book/ReportCommissioned report

Abstract

This study aims to investigate the causal effect of financial liberalisation policies on the stability of banking sectors in selected countries in Sub Saharan Africa (SSA). The study is motivated by theoretical emphasis on the competing in uence of financial liberalisation in fostering financial development, but also giving rise to financial systems that are more vulnerable to systemic risk. This thesis addresses critical issues concerning measures of nancial liberalisation used in empirical studies. While different research bodies have produced several liberalisation indices, most datasets cover developed and developing countries outside Africa. Most of the existing indices are therefore not useful in cross-country and panel studies in SSA. To address this measurement issue, this thesis constructs a new set of liberalisation indicators using country by country information on the timing of seven liberalisation policies. The study considers 12 SSA countries using the framework developed by Abiad et al. (2008). Thus, this study extends the financial liberalisation database of Abiad et al. (2008) from 14 to 26 SSA countries.
Original languageEnglish
PublisherEnergy Research Institute, University of Cape Town
Publication statusPublished - 2013

Fingerprint

Banking crisis
Financial liberalization
Sub-Saharan Africa
Liberalization
Systemic risk
Developing countries
Developed countries
Financial development
Financial system
Panel study
Cross-country study
Banking sector
Causal effect
Data base
Africa
Empirical study

Cite this

Gamariel, G. (2013). Financial liberalisation and banking crises in sub-Saharan Africa. Energy Research Institute, University of Cape Town.
Gamariel, Gladys. / Financial liberalisation and banking crises in sub-Saharan Africa. Energy Research Institute, University of Cape Town, 2013.
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Gamariel, G 2013, Financial liberalisation and banking crises in sub-Saharan Africa. Energy Research Institute, University of Cape Town.

Financial liberalisation and banking crises in sub-Saharan Africa. / Gamariel, Gladys.

Energy Research Institute, University of Cape Town, 2013.

Research output: Book/ReportCommissioned report

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PY - 2013

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AB - This study aims to investigate the causal effect of financial liberalisation policies on the stability of banking sectors in selected countries in Sub Saharan Africa (SSA). The study is motivated by theoretical emphasis on the competing in uence of financial liberalisation in fostering financial development, but also giving rise to financial systems that are more vulnerable to systemic risk. This thesis addresses critical issues concerning measures of nancial liberalisation used in empirical studies. While different research bodies have produced several liberalisation indices, most datasets cover developed and developing countries outside Africa. Most of the existing indices are therefore not useful in cross-country and panel studies in SSA. To address this measurement issue, this thesis constructs a new set of liberalisation indicators using country by country information on the timing of seven liberalisation policies. The study considers 12 SSA countries using the framework developed by Abiad et al. (2008). Thus, this study extends the financial liberalisation database of Abiad et al. (2008) from 14 to 26 SSA countries.

M3 - Commissioned report

BT - Financial liberalisation and banking crises in sub-Saharan Africa

PB - Energy Research Institute, University of Cape Town

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Gamariel G. Financial liberalisation and banking crises in sub-Saharan Africa. Energy Research Institute, University of Cape Town, 2013.