ISSN 2736-1721
Global Journal of Business Management ISSN 2736-1721 Vol. 17 (7), July, 2023. © International Scholars Journals
Full Length Research Paper
An Assessment of the Determinants of Financial Market Development in Cameroon
NJIMANTED Godfrey Forgha1, NGWENGEH Brendaline Beloke2, Mbohjim Othniel MOBIT3
1 Associate Professor of Economics Head of Division, Tertiary Science, University of Bamenda, NWR, Cameroon
2 Teacher of Banking and Finance and Research Assistant
3 Lecturer of Economics and Management, Acting Vice Dean, School of Business, Catholic University Institute of Buea (SB-CUIB)
E-mail: [email protected]
Accepted 14 March 2023
Abstract
Financial market development is very vital for growth of emerging economies. Empirically, understanding the length and breadth of financial market development in Cameron a quarterly data set from 2006-2014 is analyzed using the Ordinary Least Square technique to highlight the key determinants of financial market development in Cameroon. From this analysis, it is established that Domestic Credit to the private sector, Commercial Bank Deposits, Commercial Bank Asset Concentration Ratio, Inflation Rate and Total Value Traded of the DSX market are very significantly tools in the Financial Market Development in Cameroon. Furthermore, Interest Rate Spreads and Stock Market Capitalization were insignificant. On these bases it is very clearly that developing the Banking System is very crucial for the effective financial market by guaranteeing commercial banks credit to the small and Medium Size enterprises, reducing the Lending/Deposit gap and encourage competition of commercial banks through bank assets concentration ratio. This typically says the potentials of the Banking systems have not been fully utilized in Cameroon yet.
Keywords: Financial Markets, Bank Deposits, Bank Asset Concentration Ratio, Market Capitalization.