Competition and Commercial Banks Risk-Taking: Evidence from Sub-Saharan Africa Region

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dc.citation.issue44
dc.citation.volume50
dc.contributor.authorAkande JO
dc.contributor.authorKwenda F
dc.contributor.authorEhalaiye D
dc.date.available2018
dc.date.issued26/04/2018
dc.description.abstractThis study investigates the relationship between competition and the risk-taking attitude of banks. We test how this relationship manifests in the Sub-Saharan African(SSA) region’s commercial banks in light of the competition-fragility view, using the generalized methods of moments. We studied 440 commercial banks in 37 SSA countries over the period 2006–2015. The results provide evidence that supports a positive relationship between competition and banks’ overall risk as well as their credit risk but suggests that off-balance sheet risk reduces with competition. We, therefore, conclude that the propensity to undertake higher risk in a competitive banking environment largely accounts for fragility as argued in the competition-fragility view.
dc.description.publication-statusPublished
dc.format.extent4774 - 4787
dc.identifierhttp://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000439710800005&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=c5bb3b2499afac691c2e3c1a83ef6fef
dc.identifier.citationAPPLIED ECONOMICS, 2018, 50 (44), pp. 4774 - 4787
dc.identifier.doi10.1080/00036846.2018.1466995
dc.identifier.eissn1466-4283
dc.identifier.elements-id404587
dc.identifier.harvestedMassey_Dark
dc.identifier.issn0003-6846
dc.identifier.urihttps://hdl.handle.net/10179/16899
dc.publisherTaylor and Francis Group
dc.relation.isPartOfAPPLIED ECONOMICS
dc.subjectCompetition
dc.subjectrisk-taking behaviour
dc.subjectLerner index
dc.subjectgeneralized method of moments
dc.subjectcommercial banks
dc.subjectG21
dc.subjectG29
dc.subjectL10
dc.subject.anzsrc1402 Applied Economics
dc.subject.anzsrc1403 Econometrics
dc.subject.anzsrc1502 Banking, Finance and Investment
dc.titleCompetition and Commercial Banks Risk-Taking: Evidence from Sub-Saharan Africa Region
dc.typeJournal article
pubs.notesNot known
pubs.organisational-group/Massey University
pubs.organisational-group/Massey University/Massey Business School
pubs.organisational-group/Massey University/Massey Business School/School of Accountancy
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