Broadening Financial Intermediation in Sub-Saharan Africa

  • Murat A. Yülek
  • Vivien Yeda


Financial system forms the channel between sources and users of savings. The structure and performance of the financial sector determine the effectiveness of this intermediation. Thus, it is a key determinant of economic development and long-term growth in an economy. Sub-Saharan Africa is not an exception to this. Their financial systems need to be developed in order to better serve economic development. Better financial intermediation will help sub-Saharan African economies in achieving higher income levels and catching up with other regions of the world. This chapter reviews the existing deficiencies in the financial sector and proposes a blueprint for reforms in sub-Saharan Africa. The key conclusion is that bank-based narrow financial markets should be broadened with more roles for other segments such as development banks and capital markets.

JEL Code

G18 G21 G23 G24 G28 O16 O17 


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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Murat A. Yülek
    • 1
  • Vivien Yeda
    • 2
  1. 1.Center for Industrial Policy and Development, Istanbul Commerce UniversityIstanbulTurkey
  2. 2.East African Development BankKampalaUganda

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