68th International Atlantic Economic Conference

October 08 - 11, 2009 | Boston, USA

The Determinants of Deposit and Lending Gap Rate: Empirical Evidence From African Countrie

Saturday, October 10, 2009: 9:30 AM
Uche Akpom, Ph.D. , Economics, The African Education and Business Research Institute, Inc., Rockwall, TX
Wide and persistent gap have been observed between deposit and lending rate in developing countries despite financial sector reforms.  This paper evaluates the existence of large interest rate dispersion in lending and deposit rate in African countries.  We found that high intermediation cost, inflation and the degree of transparency in the financial sector accounts for larger interest rate spread in African countries.