Increased foreign bank presence, privatisation and competition in the Zambian banking sector

Simpasa, Anthony

doi:10.1108/mf-may-2010-0076

Cited by 13 publications

(8 citation statements)

References 48 publications

(56 reference statements)

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“…BANK, INDUSTRY, and MACRO show the vectors of bank-specific (bank concentration, bank deposits, and return on assets), industry-specific (financial development, stock market development, governance index, stock market return), and macro-specific control variables (GDP growth, inflation, current and saving account to GDP%). The level of bank competition might also influence risk-taking behavior in the increased number of foreign banks over the period (Simpasa 2013;Wu et al 2017). Therefore, we extended our dynamic model by including an interactive term of the foreign bank entry and level of competition using the above equation.…”

Section: Empirical Methodologymentioning

confidence: 99%

Bank Competition, Foreign Bank Entry, and Risk-Taking Behavior: Cross Country Evidence

Chen

Nazir

Hashmi

et al. 2019

JRFM

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This unique study examines the interactive role of bank competition and foreign bank entry in explaining the risk-taking of banks over the globe. We used cross-country data for the banking sector from 2000 to 2016. Using the pooled regression model and Two-stage Least Squares model (2SLS with Generalized Method of Moments GMM), we document that foreign bank entry decreases the risk-taking behavior of the banks to a certain level and exhibits an inverted U-shaped relation with financial stability. Furthermore, the joint effect of bank competition and foreign bank entry brings financial fragility because host banks tend to make risky investments due to undue competition induced by foreign bank entry. We support the competition–fragility hypothesis when foreign bank entry goes beyond a certain threshold. Our results also suggest that restrictions on bank activities and capital regulation stringency reduce the level of the risk factor. We also applied various robustness tests, which further confirm our mainstream results. Our findings have policy implications for foreign investors and regulatory authorities.

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Section: Empirical Methodologymentioning

confidence: 99%

Bank Competition, Foreign Bank Entry, and Risk-Taking Behavior: Cross Country Evidence

Chen

Nazir

Hashmi

et al. 2019

JRFM

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“…This will indicate of whether the Malaysian Islamic banking market is in a monopoly, monopolistic competition or perfect competition market. The selection of CR k , HHI and the PR approach was made because these methods are reliable, easy to use and understand, proven and vastly applied in various banking markets (Al-Muharrami, 2008, 2009; Al-Muharrami et al , 2006; Casu and Girardone, 2009; Molyneux et al , 2010; Nguyen and Stewart, 2013; Pawlowska, 2005; Simpasa, 2013; Sufian and Shah Habibullah, 2013).…”

Section: Empirical Processmentioning

confidence: 99%

Competition and market structure of the Malaysian Islamic banking industry

Basri

2020

JIABR

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Purpose This paper aims to investigate the impact of competition in the Malaysian Islamic banking industry and the market structure of the industry by focusing on the particular impact created by the entrance of fully fledged foreign Islamic banks plus the introduction of Islamic subsidiaries of existing conventional banks in the country (domestic and foreign ownership). Design/methodology/approach Using a sample of 16 Islamic banks in the country that operated between 2008 and 2015, this paper measures the competition among the Islamic banks using the Panzar-Rosse Model and by looking at the market structure of the industry using the k-bank concentration ratio and the Herfindahl-Hirschman Index. Findings The study found that between 2008 and 2015, the Malaysian Islamic banking industry operated in monopolistic competition conditions with a moderately concentrated market structure. The introduction of foreign Islamic banks caused the market structure to become more competitive and less concentrated by comparing the results that include foreign Islamic banks against the results generated with a subsample of domestic Islamic banks only. Bank Negara Malaysia’s (BNM’s) financial reform and the liberalisation of the financial system were proven to induce competition making the financial system more resilient, competitive and dynamic. The Islamic banks have recorded consistently increased annual performance with the under-performing Islamic banks catching up on the top performers. Originality/value Very few research studies have focused on the market structure and competition of the Islamic banking industry in Malaysia, especially using recent financial data; this study will contribute to filling the existing gap.

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“…For Kenya[24]. Finally for Zambia[25] 3. This is the case, for instance, for US banking systems in Zardkoohi and Fraser[26].…”

mentioning

confidence: 93%

Deregulation, efficiency and competition in developing banking markets: Do reforms really work? A case study for Ghana

Dadzie

Ferrari

2019

J Bank Regul

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A key research question that remains largely unanswered especially in the African context is whether the macroeconomic environment and the level of financial development of a country determine the effectiveness of financial reforms. This has important policy implications. We choose Ghana as a case study and carry out an in-depth analysis of its comprehensive set of financial reforms, implemented in the 2000s, which we look at individually. We estimate a stochastic cost frontier to look at efficiency. This is then followed by two different models of competition on the loans market, the main target of the reforms. We find that only the removal of entry restrictions is significant at improving banks efficiency and that private and global foreign, but not regional banks, benefit from it. The results show, however, no improvements in competition, and reveal instead that macroeconomic and institutional weaknesses continue to exert a negative counterbalancing effect. Reforms need to be anchored on stronger macroeconomic fundamentals, institutional initiatives and generally stronger credit environments for their full potential to be revealed in the context of developing financial markets.

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Increased foreign bank presence, privatisation and competition in the Zambian banking sector

Cited by 13 publications

References 48 publications

Bank Competition, Foreign Bank Entry, and Risk-Taking Behavior: Cross Country Evidence

Bank Competition, Foreign Bank Entry, and Risk-Taking Behavior: Cross Country Evidence

Competition and market structure of the Malaysian Islamic banking industry

Deregulation, efficiency and competition in developing banking markets: Do reforms really work? A case study for Ghana

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