دانلود رایگان مقاله انگلیسی تعیین کننده های پایداری بانکداری در آفریقا - امرالد 2018

Abstract

Purpose – The purpose of this paper is to investigate the determinants of banking stability in Africa. Design/methodology/approach – The authors present four measures of banking stability embedding banks’ loan loss coverage ratio, insolvency risk, asset quality ratio, and level of financial development, thereby allowing analysis of banking stability determinants from four complementary perspectives: protection for downside credit losses, distress arising from insolvency risk, non-performing loans, and financial development. The authors use the regression methodology to estimate the impact of financial structure, institutional, bank-level factors on bank stability. Findings – The findings indicate that banking efficiency, foreign bank presence, banking concentration, size of banking sector, government effectiveness, political stability, regulatory quality, investor protection, corruption control and unemployment levels are significant determinant of banking stability in Africa and the significance of each determinant depends on the banking stability proxy employed and depends on the period of analysis: pre-crisis, during-crisis or post-crisis. Practical implications – Banking supervisors in African countries should consider the role of financial structure and institutional quality for banking stability in the African region. Originality/value – This study is the first to examine banking stability determinants in Africa that takes into account institutional quality and financial structure.

5. Conclusion

This study examines the determinants of banking stability in Africa. Prior studies have documented the role of systemic risk and bank-specific shocks for financial system stability with little focus on banking stability in Africa using a large sample. We examine banking stability determinants for 48 African countries over the 1996-2015 period. Our results indicate that banking efficiency, foreign bank presence, banking concentration, size of banking sector, government effectiveness, political stability, RQ, investor protection, corruption control and unemployment levels are significant determinants of banking stability in Africa and the effect of each determinant depends on the banking stability proxy employed. Our results have policy implications. If bank supervisors in African countries want to improve banking stability, it is important for national bank supervisors to consider the role of financial structure and institutional quality for banking stability. Moreover, our results highlight the impact of institutional quality for African banking stability as the literature has extensively shown similar evidence for other regions, even when we use multiple banking stability proxies for Africa. A fruitful direction for future research would be to investigate the impact of economic volatility and stock price volatility on banking stability in Africa. Finally, as an extension of Ozili’s (2018) study, future studies can also examine the impact of digital finance for banking stability in the African region.