Assessing the impact of the expansion of pan-African banks and the institution’s quality on African banking stability

Chawki El Moussawi, Stéphane Goutte, Imen Kouki and Hassan Obeid

Research in International Business and Finance, 2024, vol. 70, issue PA

Abstract: This study examines the impact of the presence of Pan-African banks (PABs) on African banks’ stability during the period from 2005 to 2018. Using the generalized method of moments (GMM), our results reveal that the presence of PABs affects banking stability both positively and negatively, while the competition has a positive impact on banking stability. However, taking into account the interaction variables between the presence of PABs and market power results in a negative association with banking stability. This implies that regulatory authorities must be careful when making decisions that may result in an increase in market power and the creation of systemic banks, as this could reduce banking stability.

Keywords: Banking stability; Pan-African banks; GMM (search for similar items in EconPapers)
JEL-codes: G21 G28 (search for similar items in EconPapers)
Date: 2024
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Working Paper: Assessing the impact of the expansion of pan-African banks and the institution s quality on African banking stability (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:70:y:2024:i:pa:s027553192400076x

DOI: 10.1016/j.ribaf.2024.102283

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