Examining the impact of income diversification on bank performance: Are foreign banks heterogeneous?

Bismark Addai, Wenjin Tang and Annette Serwaa Agyeman

Journal of Applied Economics, 2022, vol. 25, issue 1, 1-21

Abstract: This study examines the heterogeneity of foreign banks in the income diversification and performance nexus. We utilize annual bank data across 46 countries in Sub-Saharan Africa over the period 2011–2018 and find that increased income diversification improves banks performance, and the Global and Emerging banks perform better than the regional African and domestic banks. Regarding how different foreign banks benefit from income diversification, we find that Global banks benefit from diversification more than their counterparts operating in the region. The Emerging country banks outperform the African and domestic banks, while the local banks in the region benefit from income diversification more than the regional African banks. The results of this study suggest that the emerging banks and the regional African banks do not always exhibit similar features like the Global banks. The observations in this study make significant contribution to the literature by providing new insight into the non-homogeneity of foreign banks in the income diversification pendulum.

Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://hdl.handle.net/10.1080/15140326.2021.2022828 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:recsxx:v:25:y:2022:i:1:p:1-21

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/recs20

DOI: 10.1080/15140326.2021.2022828

Access Statistics for this article

Journal of Applied Economics is currently edited by Jorge M. Streb

More articles in Journal of Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().