TITLE:
Competitiveness of Togolese Banking Sector
AUTHORS:
Tunde Ahmed Afolabi
KEYWORDS:
Competitiveness, Banking Sector, SCP Framework
JOURNAL NAME:
Theoretical Economics Letters,
Vol.8 No.11,
August
22,
2018
ABSTRACT: Development of a country depends on its economic growth which
depends also on several factors which can be both micro and macroeconomic. The
financial sector is the lung of the economy; more exactly the banking sector contributes in a
non negligible part to this growth. The competitiveness, effectiveness and efficiency of banking sector make
it reliable to the economy. Unfortunately, evidences have shown that most Sub-Saharan
countries don’t rely much on their financial sector, mainly due to challenges
they face. This paper aims to analyze the competitiveness and the driving
factors in Togolese banking sector with macroeconomic development using
Structure-Conduct and Performance (SCP) framework and regression models. The
research covers a period of sixteen years (from 2000 to 2015), with ten banks.
This research proxies the asset in a panel A and profit in a panel B for the
bank’s competitiveness. The results are of panel regressions with fixed effects and robust standard errors.
Considering the Panel A, the variables Inter-Banks loans, customers loans,
Inter-Banks Debts, Customers Debts are the driving factor of the
competitiveness. However, the size
of the bank proxied by profit has no impact on the competitiveness. The result
suggests that the reform which has started since 1990 should be completed; there should be
organizational and financial restructuring.