Drivers of Cross-Border Banking in Sub-Saharan Africa
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Summary:
Using data collected from pan-African banks’ (PABs), balance sheets and other sources (Orbis, Fitch), this study identifies some key patterns of cross-border investment in bank subsidiaries by key banking groups in sub-Saharan Africa (SSA) and discusses some of the determinants of this investment. Using a gravity model relating the annual value of a banking group’s investment in the net equity of its subsidiaries to a set of explanatory variables, the analysis finds that cross-border banking is in part driven by a search for yield, diversification, and expansion for strategic reasons.
Series:
Working Paper No. 2019/146
Subject:
Banking Cross-border banking Econometric analysis Exchange rates Financial institutions Financial services Foreign exchange Gravity models Inflation Prices Stocks
English
Publication Date:
July 11, 2019
ISBN/ISSN:
9781498321549/1018-5941
Stock No:
WPIEA2019146
Pages:
45
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