Measurement of Non-bank Financial Intermediation

Damilola Tope Oyetade (), Khadijah Jumanne Kishimba (), Joseph Olorunfemi Akande () and Paul-Francois Muzindutsi ()
Additional contact information
Damilola Tope Oyetade: University of KwaZulu-Natal
Khadijah Jumanne Kishimba: University of KwaZulu-Natal
Joseph Olorunfemi Akande: Walter Sisulu University
Paul-Francois Muzindutsi: University of KwaZulu-Natal

Chapter Chapter 3 in Shadow Banking and Financial Risk in Emerging and Developing Markets, 2025, pp 51-72 from Palgrave Macmillan

Abstract: Abstract Non-Bank Financial Intermediaries (NBFI) occasionally compete with commercial banks but offer services that are not always fit for banks. This study aims to evaluate NBFI measurement to ascertain their relevance in the African financial system. To achieve this objective, the study compares different methods and classifications employed to measure NBFI, to identify the role of NBFI, their interconnectedness with the financial sector, and their overall systemic importance in developing and emerging economies, specifically focusing on the African continent. Annual data on NBFI from 30 African countries during the period 2000 to 2022 was obtained to measure NBFI. Descriptive statistics and fixed effect model with corrected standard errors were employed to analyse annual data on NBFI from 30 African countries during the period 2000 to 2022. Our findings showed that although NBFIs support credit intermediation, the challenge of having proper statistics to critically identify the NBFI’s contribution to a country’s economy still holds. The implication is that NBFI operating credit intermediation in shadow poses a great risk to Africa’s fragile financial sector and economic performance. Finally, our results showed that a country’s financial development level eliminates activities of NBFI being unaccounted for.

Keywords: Non-bank financial institutions; Shadow banking; Credit; Financial stability; Banking development; Financial innovation (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-031-86224-3_3

Ordering information: This item can be ordered from
http://www.palgrave.com/9783031862243

DOI: 10.1007/978-3-031-86224-3_3

Access Statistics for this chapter

More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().