Banking sector, financial structures and development

Promoting pro-poor financial development

The domestic public resources released must allow local and national authorities to mobilise private domestic resources to fund sustainable long-term development.

The first condition is to ensure price stability based on good macroeconomic policies. This means imposing the right level of “financial repression” to encourage investment without harming savings; increasing taxes appropriately to boost public savings without stifling private savings; and releasing capital to develop private savings without increasing financial instability.

A second condition is a high-quality banking sector, which means increasing the resources available to the regulator, which has a cost; imposing an appropriate level of regulation; increasing the openness of the financial market, which increases the need for regulation; implementing an appropriate monetary policy, and guaranteeing deposits in light of the moral hazard that may ensue.

Mobilising private savings also means promoting financial inclusion, in the case of poor countries, and implementing specific policies, such as the adoption of fiscal incentives for private savings. The complexity does not relate so much to the recommended “revenues”, which are basically fairly standard, but to applying them in difficult environments.

The priority for promoting pro-poor financial development in countries with the lowest availability of banking services, before access to credit, is access to a high-performance, innovative payment system and securing savings. Access to credit can then be promoted by improving the geographical coverage of banks and innovative solutions such as mobile finance, a better definition of property rights and increasing financial education for the population.

Agreement with the Banque de France

An agreement penned with the Banque de France in March 2012 sealed collaborations that the Foundation and the national bank had in pipeline. The agreement covers the following topics:

  • Prices, exchange rates and competitiveness in developing countries, especially inside the CFA franc zone
  • Development financing, especially new forms of non-fiscal financing
  • The role of the financial system in development efforts

This partnership has led to the joint production of working documents and memos as well as international conferences, workshops and exchanges. Small-scale seminars organised between Banque de France directorship and researchers provide an opportunity to highlight this work and the proposals that come out of it.

Policy responses to terms of trade shocks

Pierre JACQUET, Alexis ATLANI, Marwan LISSER P205,

Terms-of-trade shocks are important determinants of long-term growth in commodity-rich developing countries. Transforming...

Too Much Finance?

Jean-Louis ARCAND, Enrico BERKES, Ugo PANIZZA

This paper examines whether there is a threshold above which financial depth no longer has a positive effect on economic growth. We use different empirical...

, Paris

Séminaire Banque de France - Ferdi

Présentation de l'article "The informal sector and mobile banking in developing countries : Does financial innovation matter ?" et du document “Différencier les partenariats pour le développement au regard de la vulnérabilité des pays”

, Paris

Banque de France-FERDI seminar

Discussion of research papers : "Credit risk and Bank competition in Sub Saharan Africa" and “Technology Gap, Managerial Efficiency and Ownership: Evidence From the Banking System in MENA”

20 September 2016 to 21 September 2016 , Paris

Tagpay World 2016

Christophe Angely, Director of Strategy at Ferdi, participated at the TagPay conference on digital banking and digital financial services