Effects of Banking Competition on Financial Stability: Cases of Some Countries in Sub-Saharan Africa
Keywords:
competition, stability, MCO, crisis
Abstract
The African banking sector has undergone changes over the past two decades. During the 1980s, the banking sector in Africa was imposed by public banks, subject to restrictive regulations. Financial remission, modernization of institutions and regulations, and globalization have changed the face of financial systems across the region. Furthermore, the literature has identified that competition in the financial sector is important for the stability of the financial system (Boyd at.al, 2009). To this problem, the results obtained by the method of ordinary least squares (OLS) applied to 15 countries of sub-Saharan Africa during the period 2010-2014 showed that the Lerner variable which captures banking competition according to market power explains significantly financial stability with a positive coefficient of 9.96693. This means that when the competition in the banking sector increases by one the financial stability increases by 9.96693. These results corroborate our first "competition-stability" or "concentration-fragility" vision.
Downloads
How to Cite
References
A Adalgiso, B Cristian, B Marinella, P Anna (2021) Market Structure and Financial Stability: the Interaction between Profit-Oriented and Mutual Cooperative Banks in Italy. 235-259.
H Afifa, A Filali, F Fatine (2013) Determinants of Banking Competition in Morocco and Evaluation of the Structural Reforms. 447-465.
D Aikman, G Hadane, B Nelson (2015) Curbing the credit cycle. 1072-1109.
Allen Wood, G (2006) Defining and achieving financial stability. 152-172.
B Allen, K Leora, T Rima (2008) Bank Competition and Financial Stability. 99-118.
N Alphonse (2019) Stabilité bancaire, digitalisation financière, économie informelle et catastrophes naturelles: quatre enjeux de politique économique.
G Bekmurodova (2016) Banking Competition and Stability: Comprehensive Literature Review. 26-33.
Bending (2016) Graphique 0.3. Investissement dans la R-D et financement par le secteur privé dans une sélection de pays, 2009. 1-158.
Nađa Đurić, Andrijana Đurđević, Zlata Đurić (2025) THE IMPACT OF THE COVID-19 CRISIS ON BANKING MARKET CONCENTRATION AND COMPETITION IN THE WESTERN BALKANS. 255-265.
John Boyd, Gianni De Nicoló (2005) The Theory of Bank Risk Taking and Competition Revisited. 60(3), 1329-1343.
Brian Lynn, L Jeffrey, N, Tjomme (2016) Bank Competition and Financial Stability: Evidence from the Financial Crisis. 1-28.
A Brian, L Lynn, N Jeffrey, O Tjomme (2016) Bank Competition and Financial Stability: Evidence from the Financial Crisis. 1-28.
A Carol (null) Chaptre 6 : Réglementation prudentielle et concurrence dans le secteur bancaire : trouver le bon dosage. 1.
L Chien-Chiang, H Meng-Fen (2013) Bank reforms, foreign ownership, and financial stability. 204-224.
M Chileshe (2017) Bank competition and financial system stability in a developing economy: does bank capitalization and size matter?. 1-27.
J Christopher, G Tendai, N Miracle (2013) Investigating The Effect Of Bank Competition On Financial Stability In Ten African Countries. 755-769.
L Florian (2012) Effet de la concurrence sur l'efficience bancaire en Afrique: Le cas de l'UEMOA. 1-47.
F Franco, S Davide (2014) Competition and financial stability in European cooperative banks. 1-16.
D Francoise, P Christian, Guillaume Jean, Sahuc (2015) Politique monétaire. 1-258.
A Franklin, G Douglas (2004) Competition and Financial Stability. 453-480.
H Helmi, S Rashid (2009) La concurrence dans le marché bancaire à l'ère de l'économie numérique: le cas français. 206-230.
L Jacolin (2017) Le mouvement de déconcentration des systèmes bancaires en Afrique subsaharienne. 1-61.
Jin Kwang, K (2013) Bank competition and financial stability: A comparison of commercial banks and mutual savings banks in Korea. 253-272.
Joshua (2011) Financial stability and economic growth: a cross-country study. 121-138.
K Kangni (2005) Software Updates. 4(1), 97-97.
S Kenneth, M Carmen (2009) This Time is Different: Eight Centuries of Financial Folly. 165-169.
Jand Luc, N Alphonse (2017) Le mouvement de déconcentration des systèmes bancaires en Afrique subsaharienne. 47-55.
E Marie-Claude (2013) la véritable histoire de la crise financière 2008. 127-158.
Mohamed Timoumi, I Rami, Z Banking Concentration and Financial Stability » New Evidence from Developed and Developing Countries. 117-134.
A Mohammed (2014) Opérations bancaires et prévisions : la panique bancaire. 63-66.
Ocde (2010) Competition, Concentration and Stability in the Banking Sector. 1-366.
D Olivier, P Christian, Guillaume Jean, Sahuc (null) Facteurs de risque pour la stabilité financière liés au compte financier. 1-276.
F Raúl, G Jesús (2015) The relationship between bank competition and financial stability: a case study of the Mexican banking industry. 103-120.
M Reinhart, S Rogoff (2009) International Aspects of Financial-Market Imperfections. 466-472.
L Salma (2015) Banks' stability-efficiency within dual banking system: a stochastic frontier analysis. 472-490.
C Stijn, L Luc (2004) bank Drives competition?, some international evidence. 563-583.
M Xiaoqing, R Yongjia, M Philip (2015) Bank Competition and Financial Stability in Asia Pacific. 64-77.
Published
2024-01-13
Issue
Section
License
Copyright (c) 2023 Authors and Global Journals Private Limited
This work is licensed under a Creative Commons Attribution 4.0 International License.