The paper investigates the implications of international migrant remittances and monetary policy for banking sector development using a sample of 35 African countries over an eighteen-year period, 1996-2013. We provide additional insight by examining the complex interlocking of three key variables that are important for regulators: remittances, monetary policy and banking sector development. The results show that remittances promote banking sector depth, outreach and stability. We also find evidence to suggest that in middle- and high-income countries, an increase in remittance inflows and contraction of monetary policy are associated with a lowering of banking sector efficiency.