Success Factors for Namibias Banking Sector

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Success Factors for Namibias Banking Sector

• J. Adongo, C. Stork E. Hasheela
• September 2005

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OUTLINE

• DEFINITIONS
• INTERNAL FACTORS
• EXTERNAL FACTORS
• METHODOLOGY
• RESULTS
• RECOMMENDATIONS

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DEFINITIONS

• Success
• Credit Allocation Efficiency
• Alternative Profit X-efficiency

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INTERNAL FACTORS

• Information Systems
• Information and Communication Technology
• Human Resource Management
• Service Delivery Channels
• Risk Management

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EXTERNAL FACTORS

• Size
• Organisational Form Governance
• MAs
• Holding Company Features

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More External Factors

• Other Bank Characteristics
• Age
• Risk
• Market Characteristics
• Market Power
• Regulation

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METHODOLOGY

• Sample
• Data
• Model

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Sample

• Agribank
• Bank Windhoek
• First National Bank Namibia
• Nedbank Namibia
• Standard Bank Namibia

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Data

• QUALITATIVE
• Annual Reports 1998 2003
• QUANTITATIVE
• Financial Statements
• Real Values in USD (CPI 1995100)

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MODEL

• Alternative Profit X-efficiency
• Bank Size Vector
• Organisation Form and Governance Vector
• Other Characteristics Vector
• Market Characteristics Vector
• Identity of Regulator
• Error Term

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RESULTS

• Bank Size
• Small, Medium, Large, Huge
• Organisational Form
• Merged, Acquired, (HC Owned), (Multi-layered HC),
  (Overseas HC), Publicly traded HC
• Other Bank Characteristics
• (Age), (Loan/GTA)

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More Results

• Market Characteristics
• H-Index, Share of deposit market concentration
• Regulator
• Government

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RECOMMENDATIONS

• Explore Small Business Credit Scoring Tools
• Assess potential MA deals for anti-trust
  violations
• Encourage Public Listing of Holding Companies

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Way Forward

• Develop model to overcome shortfalls of ANCOVA
• Apply methodology to an expanded continental
  study focusing on financial intermediaries

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Thank You