Drivers of Cross-Border Banking in Sub-Saharan Africa
Author:
Mr. Paul Henri Mathieu
Search for other papers by Mr. Paul Henri Mathieu in
Current site
Google Scholar
Close
,
Mr. Marco Pani
Search for other papers by Mr. Marco Pani in
Current site
Google Scholar
Close
https://orcid.org/0000-0003-1148-9799
,
Shiyuan Chen null

Search for other papers by Shiyuan Chen in
Current site
Google Scholar
Close
, and
Mr. Rodolfo Maino
Search for other papers by Mr. Rodolfo Maino in
Current site
Google Scholar
Close
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.
  • Collapse
  • Expand
IMF Working Papers