Africa and eastern Europe show notable cost controls

摘要

Banks' cost-to-income ratios have long been a well-watched indicator of efficiency. Historically, the ratio has also been a helpful measure of regional banking systems' evolution over time, demonstrating in numbers the efficiencies that can be gained as state-owned institutions become private banks. This year, however, the regional averages are more indicative of banking system recovery. Africa's average cost to income, for example, has fallen by more than 10 percentage points to 49.7%, from 61.87% in the 2010 ranking. This reflects the recovery of the continent's banks, and particularly the ongoing recovery of those in its biggest economy, Nigeria.