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Quality Of Banking Governance And Financial Development In Africa: The Case Of Cameroon

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  • Rodrigue NANA KUINDJA

    (Faculty of Economics and Management (FSEG), Director: Pr. AVOM Désiré. BP. 1365 Yaoundé. Tél: (00237) 96333709/74108692)

Abstract

This study aims to determine how the quality of bank governance is seen as a key factor in the expansion of the banking system to Africa in general and Cameroon in particular. This highlights possible mechanisms of thresholds in the relationship studied using theoretical and empirical analysis. The results obtained from a Principal Component Analysis (PCA) and multiple regression on a quarterly 2000-2010 show that a good bank governance is a necessary but not sufficient for financial development in Cameroon. This result is mainly due to the direct and indirect impact of the correlation. Furthermore, we show that there are mechanisms thresholds in this relationship. This mechanism could be explained by addressing the problem of judicial delays, bad checks, bank secrecy, and corruption but also the socio-political environment. These results are robust to different econometric techniques.

Suggested Citation

  • Rodrigue NANA KUINDJA, 2014. "Quality Of Banking Governance And Financial Development In Africa: The Case Of Cameroon," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 13, pages 129-149, June.
    • Handle: RePEc:aic:revebs:y:2014:i:13:kuindja
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    References listed on IDEAS

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