Konferenzbeitrag

Foreign Banks in Sub-Saharan Africa - Do North-South and South-South Banks Induce Different Effects on Domestic Banks?

In theory, the presence of foreign banks has spillover and competition effects on domestic banks leading to higher efficiency. Next to foreign banks from industrialized countries (north-south banks), foreign banks from developing countries (south-south banks) are important investors in Sub-Saharan Africa (SSA). South-south banks are either regional investors or are hosted in developing countries beyond SSA. This paper studies the competitive advantages and strategies of north-south as well as regional and non-regional south-south banks from a theoretical perspective. Moreover, the study examines theoretically whether these foreign banks induce different effects on domestic banks. To explore these issues empirically, 80 domestic banks in 17 countries of SSA between 1999 and 2006 are considered. The results show that the presence of north-south and south-south banks positively affects the costs of domestic banks. This suggests that domestic banks invest in the modern practices of foreign banks. Domestic banks' margins are positively related to the presence of north-south and nonregional south-south banks indicating a lack of competitive pressure. In contrast, regional south-south banks have a negative impact on the margins of domestic banks.

Sprache
Englisch

Erschienen in
Series: Proceedings of the German Development Economics Conference, Hannover 2010 ; No. 10

Klassifikation
Wirtschaft
International Investment; Long-term Capital Movements
Multinational Firms; International Business
Financial Aspects of Economic Integration
Thema
south-south banks
spillover and competition effects
efficiency

Ereignis
Geistige Schöpfung
(wer)
Pohl, Birte
Ereignis
Veröffentlichung
(wer)
Verein für Socialpolitik, Ausschuss für Entwicklungsländer
(wo)
Göttingen
(wann)
2010

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Konferenzbeitrag

Beteiligte

  • Pohl, Birte
  • Verein für Socialpolitik, Ausschuss für Entwicklungsländer

Entstanden

  • 2010

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