Origins of Banks and Credit Supply in Ivory Coast

  •  Prao Yao Seraphin    


This paper provides an empirical assessment of the relationship between banking origins and the supply of credit in Ivory Coast. The analysis focuses on 14 banks composed of local banks, African banks and foreign banks outside Africa. The study covers the period from 2000 to 2016. Using the panel data approach, we show that local banks positively influence the supply of credit unlike foreign and African banks. Foreign banks, on the other hand, have a negative influence on the supply of credit in Ivory Coast. In addition, the results highlight the positive impact of growth and market share on the supply of credit to the private sector. On the other hand, the size of banks and the inflation rate are unfavourable to the supply of credit in Ivory Coast. The study suggests that local banks should be strengthened so that they can provide more financing to the Ivorian economy.

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