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Bank Behavior in Developing Countries: Evidence from East Africa
Author: Richard Podpiera and Mr. Martin Cihakhttps://orcid.org/0000-0002-3571-9707
Series:
IMF Working Papers
Volume/Issue:
Volume 2005: Issue 129
Language:
English
Publication Date:
01 Jun 2005
DOI:
https://doi.org/10.5089/9781451861488.001
ISBN:
9781451861488
ISSN:
1018-5941
Pages:
24
Keywords:
WP; bank; loan; international bank; bank behavior
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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We analyze the structure, performance, and role of banking systems in the three member countries of the East African Community-Kenya, Tanzania, and Uganda-against the backdrop of recent financial sector reforms. Focusing on the behavior of different types of banks, we find no support for the argument that the presence of large international banks would have an adverse effect on the effectiveness and efficiency of banking sectors in developing countries. International banks are generally more efficient and more active in lending than domestic banks. However, as suggested by the Kenyan experience, the presence of international banks may not lead to increased competition and provision of banking services if weak institutions are allowed to remain in the system.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund