This study investigates the effects of ownership change on the performance and exposure to risk of 60 Indonesian commercial banks over the period 2005-2012. We find that state-owned banks tend to be less profitable and more exposed to risk than private and foreign banks. Domestic investors tend to select the best performers for acquisition. Domestic acquisition is generally associated with a decrease in the efficiency of the acquired banks. Non-regional foreign acquisition is associated with a reduction in risk exposure. Acquisition by regional foreign investors is associated with performance gains.

ABSTRACT. Utilizing the latest panel cointegration methods we provide new empirical evidence from 18 countries that suggests that the link between finance and growth in SubSaharan Africa is 'broken'. Specifically, our findings show that banking system development in this region follows economic growth. They also indicate that there is no link between bank credit and economic growth.

No abstract

ABSTRACT. Utilizing the latest panel cointegration methods we provide new empirical evidence from 18 countries that suggests that the link between finance and growth in SubSaharan Africa is 'broken'. Specifically, our findings show that banking system development in this region follows economic growth. They also indicate that there is no link between bank credit and economic growth.

No abstract