Showing papers by "Joshua Abor published in 2021"

Economic freedom, competition and bank stability in Sub-Saharan Africa

Abstract: This study aims to analyze the potential implications of economic freedom and competition for bank stability.,Using system generalized method of moments and data from 139 banks across 11 Sub-Saharan African (SSA) countries during the period 2006–2012, this study considers whether the degree of economic freedom affects the relationship between competition and bank stability.,The results show evidence of the competition-fragility hypothesis in SSA banking, but suggests that beyond a setting threshold, increases in market power may also be damaging to bank stability. Financial freedom has a negative effect on bank stability, suggesting that banks operating in environments with greater financial freedom generally tend to be less stable or more risky. The authors also find evidence of a conditional effect of economic freedom on the competition–stability relationship, implying that bank failure is more likely to occur in countries with greater economic freedom, but with low competition in the banking sector.,The results suggests to policy makers that a moderate level of competition and economic freedom may be the appropriate policy to ensure the stability of banks.,The study provides insight on the competition–bank stability relationship, by providing new empirical evidence on the effect of economic freedom, which has not been previously considered.

Foreign bank and banking stability in Africa: Does strong and weak corporate governance systems under different regulatory regimes matter?

Abstract: Purpose The purpose of this paper is to examine the effect of foreign bank assets (FBA) and (FBP) presence is examined on banking stability in the economies with strong and weak country-level corporate governance (CLCG) in Africa between 2006 and 2015. Design/methodology/approach Using a Prais–Winsten panel data model of 86 banks in about 30 African economies, findings on how FBA and presence influence banking stability in strong and weak corporate governance economies under different regulatory regimes are reported for the first in Africa. Findings The findings show that foreign bank presence (FBP) and assets promote banking stability. However, the positive effect of FBA and presence is enhanced in economies with strong CLCG, whereas the positive effect of FBA and presence is weakened in economies with weak CLCG. After introducing different regulatory regimes, it is observed that the enhancing effect of FBP and assets on banking stability in the full sample and economies with strong and weak CLCG systems is deepened or improved under the loan loss provision regulation regime. However, under the private and public sector-led financial transparency regulations, the reducing effect of FBP and assets on banking stability in economies with weak corporate governance systems is further dampened. Practical implications These findings show that the relationship between FBP and assets is deeply shaped by corporate governance systems and regulatory regimes in Africa. Hence, policymakers must build strong corporate governance and sound regulatory regimes to enhance how foreign bank operations promote banking stability. Originality/value This study presents first-time evidence on how FBA and presence influence banking stability under strong and weak governance systems while considering different regulatory regimes.

Towards improving risk management in healthcare organisations in Africa: A review

Abstract: This paper undertook a survey of existing literature in risk management and proposed a framework towards implementing an efficient risk management system in Africa’s healthcare organisations. The study recognises the relevance of risk management in healthcare organisations and asserts that there is no risk management system that can be said to be completely absolute. The main objective is to ensure that the healthcare institutions’ identified risks are managed within acceptable levels. It is suggested that healthcare organisations should have a proactive risk management programme as opposed to a reactive one. This study identified Enterprise Risk Management (ERM) as involving the expansion of the role of risk management across the healthcare organisation by adopting a moreholistic approach. Finally, the study proposed an ERM model to be implemented for effective risk management of healthcare institutions in Africa. We noted that by establishing an effective risk management system, healthcare organisations would be well positioned to successfully promote quality of healthcare and enhance performance, while managing the turbulent times of change. Keywords: Risk management, Healthcare risk, Healthcare organisations