Banking in Africa: Opportunities and challenges in volatile times

Posted: 22 Dec 2023

See all articles by Thorsten Beck

Thorsten Beck

Florence School of Banking and Finance

Robert Cull

World Bank - Development Research Group (DECRG)

Davide Salvatore Mare

World Bank - Research Department; University of Edinburgh - Business School

Patricio Valenzuela

Universidad de los Andes, Chile

Date Written: December 21, 2023

Abstract

This paper surveys existing literature and data to take stock of the current state of banking systems across Sub-Saharan Africa. It documents different dimensions of the development of the banking systems in the region and compares Africa’s banking systems to those of comparable low- and lower-middle income countries outside the region. The paper also discusses the progress in policies and institutions underpinning financial deepening and the results of specific innovations to reach traditionally unbanked segments of the population, such as innovative branch expansion programs, mobile banking, and new financial products. In view of the COVID-19 pandemic, the paper discusses government support for financial systems and banking sector performance during crises. Overall, the survey shows a picture of achievements and challenges, with progress along some fronts but other challenges persisting even as new ones arise, including the turning of the global financial cycle in 2022/23 and increasing geopolitical tensions.

Keywords: Africa, Banking, Financial Inclusion, Financial Innovation, Financial Stability

Suggested Citation

Beck, Thorsten and Cull, Robert and Mare, Davide Salvatore and Mare, Davide Salvatore and Valenzuela, Patricio, Banking in Africa: Opportunities and challenges in volatile times (December 21, 2023). Robert Schuman Centre for Advanced Studies Research Paper No. 2023_71, Available at SSRN: https://ssrn.com/abstract=4671815

Thorsten Beck (Contact Author)

Florence School of Banking and Finance ( email )

Florence
Italy

Robert Cull

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-473-6365 (Phone)
202-522-1155 (Fax)

HOME PAGE: http://econ.worldbank.org/staff/rcull

Davide Salvatore Mare

World Bank - Research Department ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

University of Edinburgh - Business School ( email )

Edinburgh, Scotland
United Kingdom

Patricio Valenzuela

Universidad de los Andes, Chile ( email )

Mons. Álvaro del Portillo
Las Condes
Santiago, 12.455
Chile

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
1,151
PlumX Metrics