Open AccessEffets De La Regulation Et Du Developpement Institutionnel Sur Le Secteur Bancaire De La Cemac
Author(s) -
Jumbo Urie Eleazar,
Ndzana Mekia Alain Bertrand
Publication year - 2016
Publication title -
european scientific journal
Language(s) - English
Resource type - Journals
eISSN - 1857-7881
pISSN - 1857-7431
DOI - 10.19044/esj.2016.v12n1p300
Subject(s) - equity (law) , panel data , financial system , order (exchange) , capital (architecture) , economics , equity capital , estimation , business , capital market , economy , finance , welfare economics , political science , geography , management , archaeology , law , econometrics
The objective of this study is to assess the impact of the regulation (of requirements in equity capital) and of the institutional development on some performances of the ‘’CEMAC’’ banking sector. The secondary data used come from the publications of the World Bank (World Bank Development Indicators) and from the services of ‘’BEAC’’ and ‘’COBAC’’. The method of estimation is that of the Generalized Moment Method (GMM) in dynamic panel via the model of Arellano and Bond (1991). The study spans a period of 8 years (2005-2012) and takes into account the six countries of the CEMAC subregion. The results of the study are presented as follows: (1) the level of the prescribed equity capital does not affect neither the “banking development” nor the “capacity of mobilization of the domestic saving” and just as the “economies financing capacity”. (2) The level of legal and institutional development influences negatively and significantly the “banking development” and the “volume of domestic saving”. (3) Also, the level of legal and institutional development influences positively and significantly the “capacity of the banking sector to finance the economies”. These results lead therefore to some implications of economic policy such as: the public authorities should reinforce the financing capacity of the “CEMAC” economies in setting up a real financial market. They should also develop and in a significant way political and institutional infrastructures in order to stimulate the confidence of savers and investors.