IMF: Sub-Saharan banks are cost efficient
An IMF paper published last Tuesday assesses the determinants of banking system efficiency in sub-Saharan Africa, and finds that banks in the region are generally cost-efficient. However, their performance could improve with better regulation.
The author, Sandrine Kablan, uses a stochastic frontier analysis to measure efficiency and a generalized method of moments system to explain financial development.
The paper looks for reasons besides the degree of efficiency that could explain the low
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