Credit funding and banking fragility: A forecasting model for emerging economies

Guarin, Alexander; Lozano, Ignacio

doi:10.1016/j.ememar.2017.06.004

Cited by 4 publications

(1 citation statement)

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“…Interest for emerging, transition and developing economies banking sectors has grown significantly during the last decade and elements such as population density and simultaneous openness to trade and capital promote banking sector development (Aluko and Adebayo Ajayi, 2018). But, since the 2007-08 financial crisis, there are some growing concerns over credit funding activities that could potentially increase fragility of the banking sector (Guarin and Lozano, 2017) that cannot be ignored despite increase of FDI in the banking sector of emerging economies. This is becoming even more acute in the current economic downturn that is looming in the aftermath of the current global pandemic due to Covid19.…”

Section: Spillover Effects In Developing Countries Banking Sectormentioning

confidence: 99%

Spillover effects in the banking sector of emerging economies: a South Africa case study

Pietrus¹,

Nazarian²,

Izadi³

2023

EJIM

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The aim of this article is to identify the presence of knowledge transfer and spillover effects and investigate the mechanism in which they materialise through efficiency and performance gained resulting from two foreign banks' majority and minority ownership in the South African banking (SA) sector. To achieve these objectives, performance and efficiency indicators of ABSA and the Standard Bank are collected and computed using t-statistics model. The results are analysed in light of interview outputs with several SA banking actors. The findings suggest that not only these two banks became more efficient after foreign participation in their ownership structure, but also the level of knowledge transfer depends on the type of ownership. In addition, the emergence of Capitec bank, a relatively new player in the SA banking sector contributed to the competition effect in the segment of retail-baking whereas the new entity Barclays/ABSA, a majority FDI, became a catalyst to competition effect in the segment of investment banking.

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Section: Spillover Effects In Developing Countries Banking Sectormentioning

confidence: 99%