Cross-Border Banking and Financial Deepening: The African Experience

Beck, Thorsten

doi:10.1093/jae/eju028

Cited by 30 publications

(23 citation statements)

References 25 publications

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“…10, No. 3;2018 These results indicated that the VIF values of the independent variables were within the threshold of 10. This indicated that that there was no threat of multicollinearity problem and therefore, the study used linear regression model.…”

Section: Multicollinearitymentioning

confidence: 70%

“…10, No. 3;2018 Kenyan during the study period. Earlier, a number of studies have been carried out to establish the effect of macroeconomic factors on bank stability and have revealed mixed effects with some proposing a negative effect while others a positive effect.…”

Section: Financial Inclusion Gdp Growth Rate and Credit Riskmentioning

confidence: 96%

“…10, No. 3;2018 spending units and surplus spending units together (Ndebbio, 2004). Diamond (1984) pointed out that banks are able to effectively monitor borrowers and thus play the role of delegated monitoring.…”

Section: Theoretical Literaturementioning

confidence: 99%

“…10, No. 3;2018 financial inclusion dimensions in a single number lying between 0-1, where 0 denotes complete financial exclusion and 1 indicates complete financial inclusion. Overall with respect to financial inclusion Figure 2 shows that all the measures of financial inclusion had an upward trend in the entire study period.…”

Section: Trends In Financial Inclusionmentioning

confidence: 99%

“…10, No. 3;2018 presented in Table 6. The null hypothesis of the Hausman test was that there are no systemic differences between the estimates of the random effect model and the fixed effect model.…”

Section: Hausman Test For Model Specificationmentioning

confidence: 99%

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Financial Inclusion, GDP and Credit Risk of Commercial Banks in Kenya

Musau¹,

Muathe²,

Mwangi³

2018

IJEF

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This paper provides an empirical analysis of the synergies and trade-offs between financial inclusion and credit risk of commercial banks in Kenya. The paper analyzed the effect of financial inclusion on credit risk and the moderation effect of GDP on commercial banks in Kenya. Financial inclusion was measured using three dimensions of bank availability, bank accessibility and bank usage, while credit risk was represented by the non performing loans ratio. The study was anchored on financial intermediation theory supported by finance growth theory and asymmetry information theory. The target population was all the 43 commercial banks in Kenya. The study used secondary data collected from Central Bank of Kenya annual reports; commercial banks of Kenya published audited financial statements and annual data from Central Bureau of statistics of Kenya for the period between 2007-2015. Data was analyzed using descriptive statistics and panel multiple regression analysis. The results obtained found that bank availability, bank accessibility and bank usage had significant effect on credit risk of commercial banks in Kenya. GDP growth rate was found to partially moderate the relationship between financial inclusion and credit risk. From the findings the study concluded that financial inclusion has a significant effect on credit risk of commercial banks in Kenya. The study also recommended that commercial banks in Kenya to negotiate with Central Bank and the Ministry of Finance to put policies which support favorable macroeconomic variables especially GDP which influences the level of financial inclusion and bank credit risk.

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Section: Multicollinearitymentioning

confidence: 70%

Section: Financial Inclusion Gdp Growth Rate and Credit Riskmentioning

confidence: 96%

Section: Theoretical Literaturementioning

confidence: 99%

Section: Trends In Financial Inclusionmentioning

confidence: 99%

Section: Hausman Test For Model Specificationmentioning

confidence: 99%

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Financial Inclusion, GDP and Credit Risk of Commercial Banks in Kenya

Musau¹,

Muathe²,

Mwangi³

2018

IJEF

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Banking integration and market competition: Evidence from the ASEAN‐6 countries

2023

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This article investigates the effects of banking integration on banking competition in the ASEAN‐6 countries. Using a data set of 3217 bank‐year observations over the period 1996–2018, our main results indicate that: (i) banking openness positively affects banking competition; (ii) the overall degree of balanced (in/out) integration leads to greater market power; and (iii) the increase in the market monopoly following the participation of foreign banks can be reduced by good regulatory policies. These results remain intact when two alternative competition measures are employed and when a polynomial model and a threshold model are used to reveal the non‐linear and heterogeneous effects of banking integration.

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