Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/48359
Authors: 
Pohl, Birte
Year of Publication: 
2011
Series/Report no.: 
Proceedings of the German Development Economics Conference, Berlin 2011 66
Abstract: 
This paper examines the efficiency effects of foreign bank entry on domestic banks in sub-Saharan Africa during the period 1999-2006. Using a recently compiled dataset on foreign bank presence, the competition and spillover effects of North-South, regional and nonregional South-South banks are distinguished. The results show that the competitive pressure on domestic banks' net interest margins emanates only from regional South-South banks. There is evidence of spillover effects from North-South and regional South-South banks on domestic banks. As domestic banks invest in foreign technologies, their overhead costs increase in the short-run. Non-regional South-South banks seem to have little effect on the efficiency of domestic banks.
Subjects: 
Sub-Saharan Africa
efficiency
South-South banks
spillover
JEL: 
F21
F23
F36
Document Type: 
Conference Paper

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