ABSTRACT
This study investigates the contribution of the banking sector to economic growth in Sub-Saharan Africa (SSA), and how this contribution is affected by cross-country variations in the quality of institutional governance. To address the effects of cyclical fluctuations, three year non-overlapping averages of the data are employed. The regression results show that banking services and governance quality stimulate long run economic growth only in countries with functional financial systems. The findings have implications for banking sector development and governance in SSA
