<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This study assesses the competitive environment and the determinants of the Sub-Saharan Africa commercial banking sectors. We used the Lerner index that is generally acknowledged as the best at estimating the bank level competition and the Generalised Method of Moments (GMM) to study 440 commercial banks for the period 2006 to 2015. We found a monopolistic competitive banking market. We also observed that competition is driven by the level of bank capital including some bank specific variables. Hence, we concluded that the banking market of the SSA region is contestable and competitive. As such, we recommend, among other things, that policy makers should device measures to ensure an ongoing competitive banking environment while stimulating other economic variables to complement this feat.</p></abstract>

This study assesses the competitive environment and the determinants of the Sub-Saharan Africa commercial banking sectors. We used the Lerner index that is generally acknowledged as the best at estimating the bank level competition and the Generalised Method of Moments (GMM) to study 440 commercial banks for the period 2006 to 2015. We found a monopolistic competitive banking market. We also observed that competition is driven by the level of bank capital including some bank specific variables. Hence, we concluded that the banking market of the SSA region is contestable and competitive. As such, we recommend, among other things, that policy makers should device measures to ensure an ongoing competitive banking environment while stimulating other economic variables to complement this feat.

Competitive Condition of Sub-Saharan Africa Commercial Banks

Studia Universitatis Babes-Bolyai Oeconomica

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Competitive Condition of Sub-Saharan Africa Commercial Banks"}

This study assesses the competitive environment and the determinants of the Sub-Saharan Africa commercial banking sectors. We used the Lerner index that is...

Competitive Condition of Sub-Saharan Africa Commercial Banks

Data publikacji: 23 wrz 2017

Zakres stron: 55 - 76

DOI: https://doi.org/10.1515/subboec-2017-0009

Słowa kluczowe
competitive condition, Sub-Saharan Africa, commercial banks, Lerner index, Generalised Method of Moments

© 2017 Joseph Olorunfemi Akande et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Competitive Condition of Sub-Saharan Africa Commercial Banks

Data publikacji: 23 wrz 2017

Zakres stron: 55 - 76

DOI: https://doi.org/10.1515/subboec-2017-0009

Słowa kluczowecompetitive condition, Sub-Saharan Africa, commercial banks, Lerner index, Generalised Method of Moments

© 2017 Joseph Olorunfemi Akande et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Słowa kluczowe
competitive condition, Sub-Saharan Africa, commercial banks, Lerner index, Generalised Method of Moments