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2022 | OriginalPaper | Buchkapitel

15. Cross-Border Banking and Banking Crisis in Africa

verfasst von : Charles Komla Delali Adjasi, Isaac Ofoeda, Khadijah Iddrisu, Foluso Akinsola

Erschienen in: The Economics of Banking and Finance in Africa

Verlag: Springer International Publishing

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Abstract

Cross-border banking has become an increasingly important feature of African financial systems. However, the impact of cross-border banking on the banking stability and probability of a banking crisis has remained a controversial issue in the literature. For the most part, the literature contends that cross-border banking promotes banking sector stability. This study however seeks to establish the impact of cross-border banking on the probability of a banking crisis in Africa. The study employed data from 52 African countries from 1970 to 2017. We employed the logit regression to test the hypothesis of the study. Again, we estimate the marginal effects of our model. The study provides evidence that cross-border banking, that is, foreign bank presence and participation in the domestic banking sector is more likely to result in a banking crisis in Africa. However, the probability of a banking crisis in Africa as a result of cross-border is not that significant.

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Titel: Cross-Border Banking and Banking Crisis in Africa
verfasst von: Charles Komla Delali Adjasi
Isaac Ofoeda
Khadijah Iddrisu
Foluso Akinsola
Verlag: Springer International Publishing
Buch: The Economics of Banking and Finance in Africa
Print ISBN: 978-3-031-04161-7

Electronic ISBN: 978-3-031-04162-4

Copyright-Jahr: 2022
DOI: https://doi.org/10.1007/978-3-031-04162-4_15