Assessing the Effects of Overseas Banks Entry on the Performance of Domestic Banks and the Economy in Selected Sub-Saharan African Countries: a Lesson for Ethiopia
| dc.contributor.advisor | Tadele Ferede (PhD) | |
| dc.contributor.author | Melaku Habte | |
| dc.date.accessioned | 2025-05-16T06:38:00Z | |
| dc.date.available | 2025-05-16T06:38:00Z | |
| dc.date.issued | 2024-07-18 | |
| dc.description.abstract | The main purpose of this study is to assess the effects of overseas banks’ entry on domestic bank performance and the economy in selected Sub-Saharan African countries. The time under scrutiny is from 2005 to 2020. To this end, both primary and secondary data were employed. A two-step system of generalized method of moments (GMM) was adopted to identify the effects of overseas banks’ entry on domestic bank performance and the economy. Overseas bank assets share is used as a proxy for overseas banks’ entry. Accordingly, domestic bank performance is positively determined by overseas banks’ entry, while economic performance (nominal gross domestic product (GDP) per capita) is negatively determined by overseas banks’ entry. The study finding reveals that there exists no significant difference between globalized Sub-Saharan Africa (SSA) countries and Ethiopia as far as the domestic bank performance is concerned. The finding also indicates that overseas banks’ entry will bring enormous opportunities for domestic banks such as capital, technology, more efficient processes, new service channels, systems, and expertise. In the case associated with overseas bank entry, the study identified challenges that include loss of potential customers, unfair competition, transmitting external shocks, and talent drains. The implications of the study include the government and central bank’s need to formulate an appropriate strategic response to minimize the destructive outcomes of overseas bank entry on the performance of domestic banks and the economy. Keywords: - Overseas banks entry, domestic bank performance, economic performance, and generalized method of moments (GMM) | |
| dc.identifier.uri | https://etd.aau.edu.et/handle/123456789/5505 | |
| dc.language.iso | en | |
| dc.publisher | A.A.U | |
| dc.title | Assessing the Effects of Overseas Banks Entry on the Performance of Domestic Banks and the Economy in Selected Sub-Saharan African Countries: a Lesson for Ethiopia | |
| dc.type | Thesis |