1,636
Views
2
CrossRef citations to date
0
Altmetric
Research Article

Do competition, regulation and stability matter for efficiency in Sub-Saharan African banking sectors?

ORCID Icon | (Reviewing editor)
Article: 1493667 | Received 11 Feb 2018, Accepted 20 Jun 2018, Published online: 23 Jul 2018

References

  • Abdelkader, I. B., & Mansouri, F. (2013). Competitive conditions of the Tunisian banking industry: An application of the Panzar–Rosse model. African Development Review, 25(4), 526–536. doi:10.1111/afdr.v25.4
  • Agoraki, M.-E. K., Delis, M. D., & Pasiouras, F. (2011). Regulations, competition and bank risk-taking in transition countries. Journal of Financial Stability, 7(1), 38–48. doi:10.1016/j.jfs.2009.08.002
  • Akande, J. O., & Kwenda, F. (2017a). Does competition cause stability in banks? SFA and GMM application to Sub-Saharan Africa commercial banks. Journal of Economics and Behavioral Studies, 9(4), 173–186. doi: 10.22610/jebs.v9i4.1832
  • Akande, J. O., & Kwenda, F. (2017b). P-SVAR analysis of stability in Sub-Saharan African commercial banks. SPOUDAI - Journal of Economics and Business, 67, 3.
  • Akins, B., Li, L., Ng, J., & Rusticus, T. O. (2016). Bank competition and financial stability: Evidence from the financial crisis. Journal of Financial and Quantitative Analysis, 51(01), 1–28. doi:10.1017/S0022109016000090
  • Amisano, G., & Giannini, C. (1997). Topics in structural VAR econometrics. Berlin Heidelberg: Springer. doi: 10.1007/978-3-642-60623-6
  • Apriadi, I., Sembel, R., Santosa, P. W., & Firdaus, M. (2016). Banking fragility in Indonesia: A panel vector autoregression approach. IJABER, 14(14), 10493–10524.
  • Ariss, R. T. (2010). On the implications of market power in banking: Evidence from developing countries. Journal of Banking & Finance, 34(4), 765–775. doi:10.1016/j.jbankfin.2009.09.004
  • Barro, J., & Barro, R. (1990). Pay, performance, and turnover of bank CEOs (Tech. Rep.). doi: 10.3386/w3262
  • Battese, G. E., & Coelli, T. J. (1992). Frontier production functions, technical efficiency and panel data: With application to paddy farmers in India. In International applications of productivity and efficiency analysis (pp. 149–165). Springer.
  • Berger, A. N. (1995). The relationship between capital and earnings in banking. Journal of Money, Credit and Banking, 27(2), 432–456. doi:10.2307/2077877
  • Berger, A. N., Klapper, L. F., & Turk-Ariss, R. (2009). Bank competition and financial stability. Journal of Financial Services Research, 35(2), 99–118. doi:10.1007/s10693-008-0050-7
  • Berger, A. N., & Mester, L. J. (1997). Inside the black box: What explains differences in the efficiencies of financial institutions? Journal of Banking & Finance, 21(7), 895–947. doi:10.1016/S0378-4266(97)00010-1
  • Boot, A., & Schmeits, A. (2006). The competitive challenge in banking. Advances in Corporate Finance and Asset Pricing, 133–160. doi:10.1016/b978-044452723-3/50007-3
  • Borys, M. M., Horv´Ath, R., & Franta, M. (2009). The effects of monetary policy in the Czech Republic: An empirical study. Empirica, 36(4), 419–443. doi:10.1007/s10663-009-9102-y
  • Canova, F. (2007). Methods for applied macroeconomic research (Vol. 13). New Jersey: Princeton University Press.
  • Canova, F., & Ciccarelli, M. (2014). Panel vector autoregressive models: A survey. In Var models in macroeconomics - new developments and applications: Essays in honor of Christopher A. Sims (pp. 205–246). Emerald Group Publishing Limited. doi: 10.1108/s0731-905320130000031006
  • Casu, B., & Girardone, C. (2006). Bank competition, concentration and efficiency in the single European market. The Manchester School, 74(4), 441–468. doi:10.1111/manc.2006.74.issue-4
  • Casu, B., Girardone, C., & Molyneux, P. (2015). Introduction to banking (Vol. 10). UK: Pearson Education.
  • Chiou, W.-J. P., & Porter, R. L. (2015). Does banking capital reduce risk? An application of stochastic frontier analysis and GMM approach. In C. -F. Lee & J. Lee (Eds.), Handbook of financial econometrics and statistics (pp. 349–382). New York: Springer Science & Business Media. doi:10.1007/978-1-4614-7750-1_13.
  • Chirwa, E. W. (2003). Determinants of commercial banks’ profitability in Malawi: A cointegration approach. Applied Financial Economics, 13(8), 565–571. doi:10.1080/0960310022000020933
  • Chudik, A., & Pesaran, M. H. (2013). Large panel data models with cross-sectional dependence: A survey. SSRN Electronic Journal. doi: 10.2139/ssrn.2316333
  • Cihak, M., Demirgu¨c¸-Kunt, A., Mart´Inez Per´Ia, M. S., & Mohseni-Cheraghlou, A. (2012). Bank regulation and supervision around the world: A crisis update. World Bank Policy Research Working Paper (6286).
  • Coelli, T. J., & Rao, D. (1998). An introduction to efficiency and productivity analysis. New York: Springer-Verlag. doi: 10.1007/b136381
  • Coelli, T. J., Rao, D. S. P., O’Donnell, C. J., & Battese, G. E. (2005). An introduction to efficiency and productivity analysis. New York: Springer Science & Business Media.
  • Davoodi, H. R., Dixit, S. V. S., & Pinter, G. (2013). Monetary transmission mechanism in the East African Community: An empirical investigation. IMF Working Papers, 13(39), 1. doi: 10.5089/9781475530575.001
  • Demirguc-Kunt, A., Laeven, L., & Levine, R. (2003). Regulations, market structure, institutions, and the cost of financial intermediation (Tech. Rep.). National Bureau of Economic Research.
  • Demsetz, H. (1973). Industry structure, market rivalry, and public policy. The Journal of Law & Economics, 16(1), 1–9. doi:10.1086/466752
  • Evanoff, D., & Ors, E. (2002). Local market consolidation and bank productive efficiency. SSRN Electronic Journal. Elsevier (BV). doi:10.1044/1059-0889(2002/er01)
  • Freixas, X., & Rochet, J.-C. (2008). Microeconomics of banking (Vol. 2). Cambridge, MA: MIT press.
  • Fu, X. M., Lin, Y. R., & Molyneux, P. (2014). Bank competition and financial stability in Asia Pacific. Journal of Banking & Finance, 38, 64–77. doi:10.1016/j.jbankfin.2013.09.012
  • Fungáčová, Z., Pessarossi, P., & Weill, L. (2013). Is bank competition detrimental to efficiency? Evidence from China. China Economic Review, 27, 121–134. doi:10.1016/j.chieco.2013.09.004
  • Glynn, J., Perera, N., & Verma, R. (2007). Unit root tests and structural breaks: A survey with applications. Revista de Mtodos Cuantitativos para la Economa y la Empresa, (3), 63–79. Retrieved fromhttp://google.redalyc.org/articulo.oa?id=233117245004
  • Graeve, F. D., & Karas, A. (2010). Identifying VARs through heterogeneity: An application to bank runs. SSRN Electronic Journal. doi: 10.2139/ssrn.1710544
  • Hicks, J. R. (1935). Annual survey of economic theory: The theory of monopoly. Econometrica: Journal of the Econometric Society, 1–20. doi:10.2307/1907343
  • Hussain, M. E., & Hassan, M. K. (2012). Competition, risk taking and efficiency in the US commercial banks prior to 2008 financial crisis. Available at SSRN 2003066.
  • Jim´Enez, G., Lopez, J. A., & Saurina, J. (2013). How does competition affect bank risk-taking? Journal of Financial Stability, 9(2), 185–195. doi:10.1016/j.jfs.2013.02.004
  • Koopmans, T. C. (1951), An analysis of production as an efficient combination of activities. In T. C. Koopmans (Ed.), Activity analysis of production and allocation, Proceeding of a conference (pp. 33-97). London: John Wiley and Sons Inc.
  • Kouki, I., & Al-Nasser, A. (2014). The implication of banking competition: Evidence from African countries. Research in International Business and Finance, 39, 878–895. doi: 10.1016/j.ribaf.2014.09.009
  • Kumbhakar, S. C., & Lovell, C. K. (2003). Stochastic frontier analysis. Cambridge: Cambridge University Press.
  • Kutu, A. A., & Ngalawa, H. (2016). Monetary policy shocks and industrial output in BRICS countries. SPOUDAI-Journal of Economics and Business, 66(3), 3–24.
  • Laeven, L., & Levine, R. (2009). Bank governance, regulation and risk taking. Journal of Financial Economics, 93(2), 259–275. doi:10.1016/j.jfineco.2008.09.003
  • Laeven, L., & Majnoni, G. (2005). Does judicial efficiency lower the cost of credit? Journal of Banking & Finance, 29(7), 1791–1812. doi:10.1016/j.jbankfin.2004.06.036
  • Lepetit, L., & Strobel, F. (2013). Bank insolvency risk and time-varying z-score measures. Journal of International Financial Markets, Institutions and Money, 25, 73–87. doi:10.1016/j.intfin.2013.01.004
  • Liu, H., Molyneux, P., & Wilson, J. O. (2013). Competition and stability in European banking: A regional analysis. The Manchester School, 81(2), 176–201. doi:10.1111/manc.2013.81.issue-2
  • Llewellyn, D. (1999). The economic rationale for financial regulation. London: Financial Services Authority.
  • Matutes, C., & Vives, X. (2000). Imperfect competition, risk taking, and regulation in banking. European Economic Review, 44(1), 1–34. doi:10.1016/S0014-2921(98)00057-9
  • Mlachila, M., Park, S. G., & Yabara, M. (2013). Banking in Sub-Saharan Africa: The macroeconomic context (Vol. 7; Tech. Rep). European Investment Bank (EIB). Retrieved from http://hdl.handle.net/10419/88938
  • Moyo, J., Nandwa, B., Council, D. E., Oduor, J., & Simpasa, A. (2014). Financial sector reforms, competition and banking system stability in Sub-Saharan Africa. New Perspectives. Retrieved from academia.edu
  • Mugume, A. (2008). Market structure and performance in Uganda’s banking industry. African Econometrics Society. Retrieved from pdfs.semanticscholar.org
  • Ngalawa, H., & Viegi, N. (2011). Dynamic effects of monetary policy shocks in Malawi. South African Journal of Economics, 79(3), 224–250. doi:10.1111/j.1813-6982.2011.01284.x
  • Nyong, M. (1999). Market structure, conduct and performance in the Nigerian banking industry: New evidence, new insights. Nigeria Deposit Insurance Corporation Quarterly.
  • Pagano, M. (1993). Financial markets and growth: An overview. European Economic Review, 37(2–3), 613–622. doi:10.1016/0014-2921(93)90051-B
  • Petersen, M. A., & Rajan, R. G. (1995). The effect of credit market competition on lending relationships. The Quarterly Journal of Economics, 110(2), 407–443. doi:10.2307/2118445
  • Raghavan, M., & Silvapulle, P. (2008). Structural var approach to Malaysian monetary policy framework: Evidence from the pre-and post-Asian crisis periods. In New Zealand Association of Economics, NZAE Conference (pp. 1–32).
  • Ramaswamy, R., & Slœk, T. (1998). The real effects of monetary policy in the European union: What are the differences? Staff Papers, 45(2), 374–396. doi:10.2307/3867394
  • Repullo, R. (2004). Capital requirements, market power, and risk-taking in banking. Journal of Financial Intermediation, 13(2), 156–182. doi:10.1016/j.jfi.2003.08.005
  • Roy, A. D. (1952). Safety first and the holding of assets. Econometrica: Journal of the Econometric Society, 431–449. doi:10.2307/1907413
  • Schaeck, K., & Cihák, M. (2014). Competition, efficiency, and stability in banking. Financial Management, 43(1), 215–241. doi:10.1111/fima.12010
  • Shepherd, W. G. (1983). Economies of scale and monopoly profits. In John V. Craven (Ed.), Industrial organization, antitrust, and public policy (pp. 165–204). Springer.
  • Smirlock, M., Gilligan, T., & Marshall, W. (1986). Tobin’s q and the structure-performance relationship: Reply. The American Economic Review, 76(5), 1211–1213.
  • Soedarmono, W., Machrouh, F., & Tarazi, A. (2013). Bank competition, crisis and risk taking: Evidence from emerging markets in Asia. Journal of International Financial Markets, Institutions and Money, 23, 196–221. doi:10.1016/j.intfin.2012.09.009
  • Stock, J. H., & Watson, M. (2007). Introduction to econometrics. Boston: Pearson Education Inc.
  • Vander Vennet, R. (2002). Cost and profit efficiency of financial conglomerates and universal banks in Europe. Journal of Money, Credit, and Banking, 34(1), 254–282. doi:10.1353/mcb.2002.0036
  • Williams, J. (2004). Determining management behaviour in European banking. Journal of Banking & Finance, 28(10), 2427–2460. doi:10.1016/j.jbankfin.2003.09.010
  • Ziegel, E. R., & Enders, W. (1995). Applied econometric time series. Technometrics, 37(4), 469. doi: 10.2307/1269759