Does the expansion of regional cross-border banks affect competition in Africa? Indirect evidence

Florian Leon

Research in International Business and Finance, 2016, vol. 37, issue C, 66-77

Abstract: This article investigates how bank competition has evolved in Africa following the recent penetration and expansion of regional cross-border banks over the past decade. We examine changes in competition in the banking industry of seven African countries highly affected by this recent phenomenon. The evolution of competition is evaluated through three different non-structural measures of competition (Lerner index, Panzar–Rosse model, and Boone indicator). With the exception of results from the Lerner index, our findings show an intensification of competition since the mid-2000s. This period corresponds to the rapid expansion of regional cross-border banks in the zone, indicating that this expansion has promoted competition in banking sectors in Africa.

Keywords: Bank competition; Foreign banks; Africa; NEIO (search for similar items in EconPapers)
JEL-codes: G20 L1 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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Working Paper: Does the expansion of regional cross-border banks affect competition in Africa? Indirect evidence (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:37:y:2016:i:c:p:66-77

DOI: 10.1016/j.ribaf.2015.10.015

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