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    STUDIA OECONOMICA - Issue no. 2 / 2017  
         
  Article:   COMPETITIVE CONDITION OF SUB-SAHARAN AFRICA COMMERCIAL BANKS.

Authors:  JOSEPH OLORUNFEMI AKANDE, FARAI KWENDA.
 
       
         
  Abstract:  Published Online: 2017-08

DOI: https://doi.org/10.1515/subboec-2017-0009



Abstract: This study assesses the competitive environment and the determinants of the Sub-Saharan Africa commercial banking sectors. We used the Lerner index that is generally acknowledged as the best at estimating the bank level competition and the Generalised Method of Moments (GMM) to study 440 commercial banks for the period 2006 to 2015. We found a monopolistic competitive banking market. We also observed that competition is driven by the level of bank capital including some bank specific variables. Hence, we concluded that the banking market of the SSA region is contestable and competitive. As such, we recommend, among other things, that policy makers should device measures to ensure an ongoing competitive banking environment while stimulating other economic variables to complement this feat.

JEL classification: G21, L10

Keywords: competitive condition, Sub-Saharan Africa, commercial banks, Lerner index, Generalised Method of Moments.
 
         
     
         
         
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