Spillover and Competition Effects: Evidence from the Sub-Saharan African Banking Sector

Konferenzbeitrag

This paper examines the efficiency effects of foreign bank entry on domestic banks in sub-Saharan Africa during the period 1999-2006. Using a recently compiled dataset on foreign bank presence, the competition and spillover effects of North-South, regional and nonregional South-South banks are distinguished. The results show that the competitive pressure on domestic banks' net interest margins emanates only from regional South-South banks. There is evidence of spillover effects from North-South and regional South-South banks on domestic banks. As domestic banks invest in foreign technologies, their overhead costs increase in the short-run. Non-regional South-South banks seem to have little effect on the efficiency of domestic banks.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Proceedings of the German Development Economics Conference, Berlin 2011 ; No. 66

Classification and Topics

• Classification: Wirtschaft ; International Investment; Long-term Capital Movements ; Multinational Firms; International Business ; Financial Aspects of Economic Integration
• Subject: Sub-Saharan Africa ; efficiency ; South-South banks ; spillover

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Pohl, Birte
• Event: Veröffentlichung
• (who): ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (where): Kiel und Hamburg
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/48359
• Last update: 10.03.2025, 11:41 AM CET