What lessons does the COVID-19 pandemic teach us about banking liquidity and information share in the CEMAC zone?

Djekonbe Djimoudjiel, Dany Dombu T. Rostand and Ndilengar Mbatina Nodji

MPRA Paper from University Library of Munich, Germany

Abstract: The objective of this study is to assess the effect of COVID-19 on the situation of excess liquidity in the CEMAC zone. The results are obtained using Bayesian estimates of VAR models on monthly data on banks ranging from 2000 to 2020 for countries in CEMAC. The main results suggest the shock generated by the COVID-19 pandemic on the economy of the sub-region has contributed to bogging down the situation of excess liquidity. Indeed, on the one hand, the shock on bank liquidity is greater in the short than in the long term. On the other hand, the situation under COVID-19 led to an increase in credit in the first 6 to 8 months of 2020 followed by a drop in the level of risk hedging capital. The health policies adopted and the ensuing recession, on the other hand, significantly affected the level of bank deposits. The main recommendations consist of reducing the climate of information asymmetry by encouraging the implementation of credit registers and establishing policies to help borrowers.

Keywords: Excess liquidity; Information sharing; COVID-19; BVAR; CEMAC. (search for similar items in EconPapers)
JEL-codes: C23 D82 E50 O55 (search for similar items in EconPapers)
Date: 2024-01-05, Revised 2024-01-17
New Economics Papers: this item is included in nep-ban and nep-rmg
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/119666/10/MPRA_paper_119666.pdf original version (application/pdf)

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:pra:mprapa:119666

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().