Bank Pricing Behaviour, Monetary Policy and Inclusive Finance in Africa

Mohammed Amidu (), Abdul Ganiyu Iddrisu (), Alhassan Andani () and Benjamin Agyeman ()
Additional contact information
Mohammed Amidu: University of Ghana Business School
Abdul Ganiyu Iddrisu: University of Aberdeen
Alhassan Andani: LVS Africa
Benjamin Agyeman: University of Ghana Business School

Chapter Chapter 10 in The Economics of Banking and Finance in Africa, 2022, pp 335-369 from Palgrave Macmillan

Abstract: Abstract This study examines financial inclusion in Sub-Saharan Africa, with focus on the role of monetary policy and banks’ pricing behaviour. Using a sample of 330 banks operating in 29 Sub-Saharan African countries, we test the following hypotheses. First, loan price increases when monetary policy is contracted and bank prices reduce when general price level is stable (effective monetary policy). Building on these results and using various specifications of monetary policy and bank pricing strategy, the second test suggests that, high bank pricing in the light of contractionary monetary policy tend to increase financial inclusion, and that high bank pricing reduces financial inclusion when monetary policy is effective. These findings are relevant for policy making regarding improving financial inclusion in SSA.

Keywords: Bank pricing; Monetary policy; Financial inclusion; Africa (search for similar items in EconPapers)
Date: 2022
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:978-3-031-04162-4_10

Ordering information: This item can be ordered from
http://www.palgrave.com/9783031041624

DOI: 10.1007/978-3-031-04162-4_10

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 ().