The Relationship Between Stokvels and Banking Sector Efficiency: An ARDL Approach

Abstract

This study examines the cointegration relationship long-run between stokvels and banking sector development measured by banking sector efficiency in South Africa by using the ARDL approach technique with economic time series data ranging from 1987Q3 to 2020Q1. This study reveals that in the long-run, stokvel savings has a negative relationship with banking sector development. In the short run results are negative and significant coefficient. This study reveals implications for policymakers should promote and advance the social and economic welfare of South Africans, promote a fair, transparent, competitive, sustainable, responsible, efficient, effective and accessible credit market and industry, and promote consumers.