It is a common trend of Gambians living abroad to send money to Gambia.
The banking industry is a component of the financial sector, and one cannot overemphasize its role in an economy’s growth cycle. It plays a dominant role in most developing and developed countries ‘ financial intermediate processes and therefore connotes that almost all countries’ economic sector is lender-based. For many countries, the banking sector is a crucial segment, hence implementing adequate policy initiatives. These changes guarantee that the banking industry performs its role effectively to easily send money to Gambia online.
What Are Some Reasons for Relocation?
The banking industry carries out five roles that could stimulate job creation. Such functions are:
- providing adverse selection information on possible acquisitions and allocating money.
- tracking acquisitions and practising corporate governance after the credit is given.
- facilitating trade, asset allocation, and risk management.
- mobilizing and accumulating deposits.
- facilitating the flow of goods and services.
For this reason, the growth of the banking sector refers to the increased capacity of the banking industry to perform this function effectively. Through this, anyone can choose a service for money transfer to Gambia, or any other country in Africa or anywhere in the world.
Is Banking Sector Improved In International Money Transfer?
Extensive research has been carried out to provide evidence on the impact of banking sector development on sub-Saharan Africa’s economic growth. However, little research has been done to identify the determinants of banking sector development. In light of this, this study examined the determinants of banking sector development in sub-Saharan African countries. There is a lack of consensus among researchers on the adequate measure to capture banking sector development. A myriad of empirical studies has used a single measure, commonly private sector credit to Gross Domestic Product (GDP).
A single number would not be enough to provide detailed information on the evolution of the banking sector. That is due to the multidisciplinary nature of the development of the banking sector. Identify three stages of bank performance which also include scope, access, quality, and stability. They remember that these parameters do not entirely represent the banking industry’s features, but to no small extent, describe what the vast majority of studies have concentrated on. Using a measurable statistic, few empirical research on sub-Saharan African countries went beyond. They developed an index from various banking sector development initiatives that only represent the banking industry’s size.
This indicates that the coefficient used in those studies represented only one dimension (depth) of the banking sector’s development and did not capture other dimensions of the banking sector’s growth. This study tackled this discrepancy by creating a composite index of the various indicators indicating the degree of development of the banking sector, taking into account all dimensions of the banking sector’s growth, excluding access to banking services. The justification the access factor was not considered was due to large gaps in data findings on access to financial services.
This study shows that institutional efficiency, population numbers, and trade accessibility increase the banking sector’s scope, making the online money transfer to Gambia important whenever someone wants to send money to Africa. It also demonstrates that law, interest rates, and religion promote the banking sector efficiency while longitude, financial development, revenue level, and racial differences reduce the banking sector’s efficiency.