Drivers of Cross-Border Banking in Sub-Saharan Africa
Author: Mr.Paul Henri Mathieu
Publisher: International Monetary Fund
Published: 2019-07-11
Total Pages: 45
ISBN-13: 1498326242
DOWNLOAD EBOOK →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.