Title: Financial and institutional innovations in microfinance institutions and commercial banks in Cameroon

Authors: Serge Messomo Elle

Addresses: Department of Banking and Finance, University of BUEA, P.O. Box 179, BUEA, Cameroon

Abstract: This paper set out to assess relationships explaining innovations between microfinance institutions (MFIs) and commercial banks (CBs) in Cameroon. To attain this objective, a documentary collection of data was undertaken. The results revealed that the financial innovations, more than institutional innovations, are affected by relationships between CBs and MFIs. In addition, competitive variables in terms of loans to households and enterprises by MFIs as well as by CBs (ahobank, ahomfi, alebank and alemfi) dominate changes in these innovations than partnership variables. Besides, models with hybrid partnership components relate to loans to MFIs by CBs (almbank) and deposits in CBs by MFIs (depbmfi) do not affect institutional innovations. We thus suggest that CBs and MFIs should improve their relationships so as to increase their institutional innovations.

Keywords: relationships; commercial banks; MFIs; microfinance institutions; financial and institutional innovations; partnership; competition; Cameroon.

DOI: 10.1504/IJFIB.2018.097148

International Journal of Financial Innovation in Banking, 2018 Vol.2 No.2, pp.143 - 157

Received: 27 Jun 2017
Accepted: 05 May 2018

Published online: 24 Dec 2018 *

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