The Impact Of African Banking Structure On The Growth Of Enterprise

Currently the private sector has become the engine of Africa's economic growth.It is the key to achieve the strategies of Africa's industrialization.However,the high degree of monopoly and operation costs of banking industry leads to expensive loan interest rate spread.It also brings out crowding out effect to the loan demand of private sector.To promote the development of private sector,achieve the blooming economic growth,African countries' government promotes the resolution of banking industry.Along with the success of" China-Africa Ten Cooperation Plans " and "Go global"strategies,Chinese banks are spreading the scales gradually in Africa by means of merging and acquisitions and establishment of branches.Based on the theoretical research and literature research on the general equilibrium model and the market power hypothesis.This study uses the business survey data in 28 countries that world bank provides from 2013 to 2016,to experiment the impact of African banking structure on the growth of enterprise.It concluded that the competitive banking structure in Africa is conducive to ease the financing constraints of enterprises,thereby contributing to the growth of enterprise.Based on the expansion study,first,compared to the less financing constraints of enterprises,the competitive banking structure is more conducive to those of strong financing constraints in the growth of enterprise.Second,compared to the big enterprises,the competing banking structure in Africa is more beneficial to the economic growth of small enterprises.Third,the development of information and technology will enlarge the positive effect of banking market competition on the growth of enterprise.Based on this,the paper puts forward policy suggestions on the development of African banking,the development of Chinese banks in Africa and the cooperation between China and Africa in banking.