FINANCEMENT BANCAIRE DE L’ETAT ET CREDIT PRIVE: EXISTE-T-IL UN EFFET D’EVICTION AU SENEGAL?

This paper tries to assess the consequences of the strong intervention of the Senegalese government on the financial market during the recent period. Focusing on the emerging financial market in West Africa, the reforms initiated since 1990s have helped to deepen and make more efficient the collect...

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Bibliographic Details
Published in:Studia Universitatis Babeș-Bolyai. Oeconomica 2013-08, Vol.58 (2), p.109-124
Main Authors: Diop, Mouhamadou Bamba, Mbengue, Mame Sow
Format: Article
Language:eng ; fre
Subjects:
Borrowing
Capital investments
Economy
Financial institutions
Government spending
Securities markets
Studies
Online Access:Get full text
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Summary:This paper tries to assess the consequences of the strong intervention of the Senegalese government on the financial market during the recent period. Focusing on the emerging financial market in West Africa, the reforms initiated since 1990s have helped to deepen and make more efficient the collect of national savings for the financing of investment. In order to assess the risk of crowding out effects of the large intervention of the Senegalese government on this market, an econometric approach is used. The results reveal that 100 CFAF more borrowing by government reduces private credit by about 127 FCFA. In other words, it develops a `lazy bank' model of bank behavior in Senegal. Moreover, Senegalese banks focus more around the collection of deposits, loans to large companies and Government and transfers of money. Through the recommendations made at the end of this article, our study suggests to revise the model of bank in Senegal in order to accompany the private investment. Moreover, the Senegalese government might to reduce its large public deficit for making less intervention on the financial market.
ISSN:2065-9644
1220-0506
2065-9644