BANKING MARKET INTEGRATION IN THE SADC COUNTRIES: EVIDENCE FROM INTEREST RATE ANALYSES

Meshach Aziakpono (1) , Stefanie Kleimeier (2) , Harald Sander (3)

1 Business School
2 Limburg Institute of Financial Economics
3 Faculty of Economics and Business Administration

This study investigates the state, development and drivers of banking market integration in the member countries of the Southern African Development Community. A principal component analysis of national retail interest rates indicates increasing integration in loan and deposit markets. These integration processes are not developing uniformly and we can identify a convergence club. When investigating the interest rate pass-through from central bank onto retail rates for this convergence club, we find both, genuine and monetary-integration driven processes though the latter dominate. We thus conclude that a selective expansion of the Common Monetary Area is possible.

Mots clés: Social Sciences & Humanities

Domaines: Économie et finance quantitative [q-fin]

Meshach Aziakpono, Stefanie Kleimeier, Harald Sander. BANKING MARKET INTEGRATION IN THE SADC COUNTRIES: EVIDENCE FROM INTEREST RATE ANALYSES. Applied Economics, 2011, pp.1. ⟨10.1080/00036846.2011.583219⟩. ⟨hal-00712383⟩