Access to Financial Services in Zambia

Despite the deep financial sector reforms undertaken in Zambia in the early 1990s, the expected benefits of establishing a market-based banking system has not materialized. In 2005 the banking system continued to be small and underdeveloped. Credit to the private sector by banks represented only 8 p...

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Main Author:	de Luna Martínez, José
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2012
Subjects:	AUTONOMY BANK ACCOUNTS BANK ASSETS BANK BRANCHES BANK DEPOSITS BANK FAILURES BANK REGULATION BANK SUPERVISION BANKING LAWS BANKING REGULATION BANKING SECTOR BANKING SERVICES BANKING SYSTEM BANKS BORROWING CAPITAL ADEQUACY CAPITAL MARKETS CAPITAL REQUIREMENTS CENTRAL BANK COMMERCIAL BANK COMMERCIAL BANKS CONSOLIDATION CORPORATE GOVERNANCE CORPORATION CORPORATIONS CREDIT BOOM CREDIT RISK CREDIT RISK MANAGEMENT DEBT DEPOSIT ACCOUNTS DEPOSITORS DEPOSITS DISCLOSURE REQUIREMENTS DOMESTIC CREDIT DOMESTIC MARKETS ECONOMIC CONDITIONS ECONOMIC GROWTH ECONOMIC REFORMS EMPLOYMENT ESTATE EXCHANGE RATES FINANCIAL DISCLOSURE FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR LIBERALIZATION FINANCIAL SECTOR REFORM FINANCIAL SERVICES FISCAL REFORM FOREIGN BANKS FOREIGN CURRENCY DEPOSITS FOREIGN EXCHANGE GOVERNMENT INTERVENTION GUIDELINES HOUSING INDIVIDUALS INFLATION INSOLVENT BANKS INSURANCE INTEREST RATES INTERNAL CONTROLS JOINT VENTURE LARGE COMPANIES LEASING LIMITED LIQUIDITY LOAN CLASSIFICATION MANAGERS MARKET DISCIPLINE MARKET INCENTIVES MARKET RISKS MERCHANT BANK MICROFINANCE MIGRATION MONEY SUPPLY MORAL HAZARD MORTGAGES NATIONALIZATION NEW ENTRANTS NONPERFORMING LOANS OPERATING COSTS PAYMENT SYSTEMS PERSONS PRODUCTIVITY PROFITABILITY PRUDENTIAL REQUIREMENTS PRUDENTIAL RULES REGULATORY FRAMEWORK REGULATORY REGIME RETURN ON ASSETS SAVINGS SAVINGS ACCOUNTS SECURITIES SMALL BANKS SOCIETIES SOLVENCY SPECIAL DRAWING RIGHTS STATE BANKS SUB-SAHARAN AFRICA SUPERVISORY FRAMEWORK TRADING TRANSACTION COSTS TRANSPARENCY TRANSPORT VOLATILITY
Online Access:	http://documents.worldbank.org/curated/en/2006/11/7186397/access-financial-services-zambia http://hdl.handle.net/10986/8993

id	okr-10986-8993
recordtype	oai_dc
spelling	okr-10986-89932021-04-23T14:02:41Z Access to Financial Services in Zambia de Luna Martínez, José AUTONOMY BANK ACCOUNTS BANK ASSETS BANK BRANCHES BANK DEPOSITS BANK FAILURES BANK REGULATION BANK SUPERVISION BANKING LAWS BANKING REGULATION BANKING SECTOR BANKING SERVICES BANKING SYSTEM BANKS BORROWING CAPITAL ADEQUACY CAPITAL MARKETS CAPITAL REQUIREMENTS CENTRAL BANK COMMERCIAL BANK COMMERCIAL BANKS CONSOLIDATION CORPORATE GOVERNANCE CORPORATION CORPORATIONS CREDIT BOOM CREDIT RISK CREDIT RISK MANAGEMENT DEBT DEPOSIT ACCOUNTS DEPOSITORS DEPOSITS DISCLOSURE REQUIREMENTS DOMESTIC CREDIT DOMESTIC MARKETS ECONOMIC CONDITIONS ECONOMIC GROWTH ECONOMIC REFORMS EMPLOYMENT ESTATE EXCHANGE RATES FINANCIAL DISCLOSURE FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR LIBERALIZATION FINANCIAL SECTOR REFORM FINANCIAL SERVICES FISCAL REFORM FOREIGN BANKS FOREIGN CURRENCY DEPOSITS FOREIGN EXCHANGE GOVERNMENT INTERVENTION GUIDELINES HOUSING INDIVIDUALS INFLATION INSOLVENT BANKS INSURANCE INTEREST RATES INTERNAL CONTROLS JOINT VENTURE LARGE COMPANIES LEASING LIMITED LIQUIDITY LOAN CLASSIFICATION MANAGERS MARKET DISCIPLINE MARKET INCENTIVES MARKET RISKS MERCHANT BANK MICROFINANCE MIGRATION MONEY SUPPLY MORAL HAZARD MORTGAGES NATIONALIZATION NEW ENTRANTS NONPERFORMING LOANS OPERATING COSTS PAYMENT SYSTEMS PERSONS PRODUCTIVITY PROFITABILITY PRUDENTIAL REQUIREMENTS PRUDENTIAL RULES REGULATORY FRAMEWORK REGULATORY REGIME RETURN ON ASSETS SAVINGS SAVINGS ACCOUNTS SECURITIES SMALL BANKS SOCIETIES SOLVENCY SPECIAL DRAWING RIGHTS STATE BANKS SUB-SAHARAN AFRICA SUPERVISORY FRAMEWORK TRADING TRANSACTION COSTS TRANSPARENCY TRANSPORT VOLATILITY Despite the deep financial sector reforms undertaken in Zambia in the early 1990s, the expected benefits of establishing a market-based banking system has not materialized. In 2005 the banking system continued to be small and underdeveloped. Credit to the private sector by banks represented only 8 percent of GDP in 2005, which is slightly lower than the level registered in 1990. As in the early 1990s, only large corporations and a few small- and medium-size enterprises have access to credit in 2006. Moreover, less than 8 percent of Zambia's adult population had a bank account in 2005. And despite the open door policy to foreign financial institutions, which has been in place since Zambia's independence, only a few new banking products have been introduced by foreign banks to serve the needs of households and firms. This paper analyzes the factors that have prevented the development of a large and inclusive banking system in Zambia and highlights possible actions that may help improve access to finance in Zambia in both the short and long terms. 2012-06-26T13:33:12Z 2012-06-26T13:33:12Z 2006-11 http://documents.worldbank.org/curated/en/2006/11/7186397/access-financial-services-zambia http://hdl.handle.net/10986/8993 English en_US Policy Research Working Paper; No. 4061 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa Zambia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	AUTONOMY BANK ACCOUNTS BANK ASSETS BANK BRANCHES BANK DEPOSITS BANK FAILURES BANK REGULATION BANK SUPERVISION BANKING LAWS BANKING REGULATION BANKING SECTOR BANKING SERVICES BANKING SYSTEM BANKS BORROWING CAPITAL ADEQUACY CAPITAL MARKETS CAPITAL REQUIREMENTS CENTRAL BANK COMMERCIAL BANK COMMERCIAL BANKS CONSOLIDATION CORPORATE GOVERNANCE CORPORATION CORPORATIONS CREDIT BOOM CREDIT RISK CREDIT RISK MANAGEMENT DEBT DEPOSIT ACCOUNTS DEPOSITORS DEPOSITS DISCLOSURE REQUIREMENTS DOMESTIC CREDIT DOMESTIC MARKETS ECONOMIC CONDITIONS ECONOMIC GROWTH ECONOMIC REFORMS EMPLOYMENT ESTATE EXCHANGE RATES FINANCIAL DISCLOSURE FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR LIBERALIZATION FINANCIAL SECTOR REFORM FINANCIAL SERVICES FISCAL REFORM FOREIGN BANKS FOREIGN CURRENCY DEPOSITS FOREIGN EXCHANGE GOVERNMENT INTERVENTION GUIDELINES HOUSING INDIVIDUALS INFLATION INSOLVENT BANKS INSURANCE INTEREST RATES INTERNAL CONTROLS JOINT VENTURE LARGE COMPANIES LEASING LIMITED LIQUIDITY LOAN CLASSIFICATION MANAGERS MARKET DISCIPLINE MARKET INCENTIVES MARKET RISKS MERCHANT BANK MICROFINANCE MIGRATION MONEY SUPPLY MORAL HAZARD MORTGAGES NATIONALIZATION NEW ENTRANTS NONPERFORMING LOANS OPERATING COSTS PAYMENT SYSTEMS PERSONS PRODUCTIVITY PROFITABILITY PRUDENTIAL REQUIREMENTS PRUDENTIAL RULES REGULATORY FRAMEWORK REGULATORY REGIME RETURN ON ASSETS SAVINGS SAVINGS ACCOUNTS SECURITIES SMALL BANKS SOCIETIES SOLVENCY SPECIAL DRAWING RIGHTS STATE BANKS SUB-SAHARAN AFRICA SUPERVISORY FRAMEWORK TRADING TRANSACTION COSTS TRANSPARENCY TRANSPORT VOLATILITY
spellingShingle	AUTONOMY BANK ACCOUNTS BANK ASSETS BANK BRANCHES BANK DEPOSITS BANK FAILURES BANK REGULATION BANK SUPERVISION BANKING LAWS BANKING REGULATION BANKING SECTOR BANKING SERVICES BANKING SYSTEM BANKS BORROWING CAPITAL ADEQUACY CAPITAL MARKETS CAPITAL REQUIREMENTS CENTRAL BANK COMMERCIAL BANK COMMERCIAL BANKS CONSOLIDATION CORPORATE GOVERNANCE CORPORATION CORPORATIONS CREDIT BOOM CREDIT RISK CREDIT RISK MANAGEMENT DEBT DEPOSIT ACCOUNTS DEPOSITORS DEPOSITS DISCLOSURE REQUIREMENTS DOMESTIC CREDIT DOMESTIC MARKETS ECONOMIC CONDITIONS ECONOMIC GROWTH ECONOMIC REFORMS EMPLOYMENT ESTATE EXCHANGE RATES FINANCIAL DISCLOSURE FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR LIBERALIZATION FINANCIAL SECTOR REFORM FINANCIAL SERVICES FISCAL REFORM FOREIGN BANKS FOREIGN CURRENCY DEPOSITS FOREIGN EXCHANGE GOVERNMENT INTERVENTION GUIDELINES HOUSING INDIVIDUALS INFLATION INSOLVENT BANKS INSURANCE INTEREST RATES INTERNAL CONTROLS JOINT VENTURE LARGE COMPANIES LEASING LIMITED LIQUIDITY LOAN CLASSIFICATION MANAGERS MARKET DISCIPLINE MARKET INCENTIVES MARKET RISKS MERCHANT BANK MICROFINANCE MIGRATION MONEY SUPPLY MORAL HAZARD MORTGAGES NATIONALIZATION NEW ENTRANTS NONPERFORMING LOANS OPERATING COSTS PAYMENT SYSTEMS PERSONS PRODUCTIVITY PROFITABILITY PRUDENTIAL REQUIREMENTS PRUDENTIAL RULES REGULATORY FRAMEWORK REGULATORY REGIME RETURN ON ASSETS SAVINGS SAVINGS ACCOUNTS SECURITIES SMALL BANKS SOCIETIES SOLVENCY SPECIAL DRAWING RIGHTS STATE BANKS SUB-SAHARAN AFRICA SUPERVISORY FRAMEWORK TRADING TRANSACTION COSTS TRANSPARENCY TRANSPORT VOLATILITY de Luna Martínez, José Access to Financial Services in Zambia
geographic_facet	Africa Zambia
relation	Policy Research Working Paper; No. 4061
description	Despite the deep financial sector reforms undertaken in Zambia in the early 1990s, the expected benefits of establishing a market-based banking system has not materialized. In 2005 the banking system continued to be small and underdeveloped. Credit to the private sector by banks represented only 8 percent of GDP in 2005, which is slightly lower than the level registered in 1990. As in the early 1990s, only large corporations and a few small- and medium-size enterprises have access to credit in 2006. Moreover, less than 8 percent of Zambia's adult population had a bank account in 2005. And despite the open door policy to foreign financial institutions, which has been in place since Zambia's independence, only a few new banking products have been introduced by foreign banks to serve the needs of households and firms. This paper analyzes the factors that have prevented the development of a large and inclusive banking system in Zambia and highlights possible actions that may help improve access to finance in Zambia in both the short and long terms.
format	Publications & Research :: Policy Research Working Paper
author	de Luna Martínez, José
author_facet	de Luna Martínez, José
author_sort	de Luna Martínez, José
title	Access to Financial Services in Zambia
title_short	Access to Financial Services in Zambia
title_full	Access to Financial Services in Zambia
title_fullStr	Access to Financial Services in Zambia
title_full_unstemmed	Access to Financial Services in Zambia
title_sort	access to financial services in zambia
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2006/11/7186397/access-financial-services-zambia http://hdl.handle.net/10986/8993
_version_	1764406722409005056

Access to Financial Services in Zambia

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