No description available.

No description available.

This thesis examines the cost and alternative profit efficiency of a sample of Algerian, Moroccan and Tunisian banks over the financial liberalisation period 1994-2001. The translog functional form and intermediation approach are employed in this study to derive inefficiency estimates as well as scale economies levels and scale inefficiencies estimates. The results show that inefficiencies are substantial in the three banking systems under study, with an average of 29% of cost inefficiency and 32% of alternative profit inefficiency. Scale economies and scale inefficiencies are also found to be not negligible at an average level of 46% and 9%, respectively, with a negative relationship between assets size class and scale economies and scale inefficiencies estimates. The analysis also principally reveals that; first, Moroccan and Tunisian banks are more cost efficient than their counterparts in Algeria, secondly, banks that are involved in traditional income-generating activities are more profit efficient that other banks, and thirdly, banking firms with mixed structures of ownership (a combination of private, public and foreign), or listed, are more cost and profit efficient than their counterparts with a single type of ownership. We suggest that the three types of ownership may combine so as to reduce various inefficiencies associated with single ownership types. For example, foreign ownership might bring new technology and updated systems of risk management, the private sector emphasises the profitability motive and lending to more profitable sectors, whereas government ownership brings experience and knowledge in the domestic market. These factors combined seem to result in a more efficient bank operating units than those that have sole ownership features. As our results seem to be very sensitive to the data used in this study, we can conclude that the cost and profit inefficiencies, and the substantial level of potential gains from scale economies that appear to prevail in North African banking, we argue, are likely to reflect the still limited presence of competitive pressures in the banking systems under study. We conclude that inefficient banks in North African countries (Algeria, Morocco and Tunisia) continue to exist because they have been (or still) protected, especially as we know that the largest banks are typically State-owned or have major state shareholders.

This thesis is composed of three stand-alone essays interlinked within the context of banking markets in sub-Saharan Africa. This research is motivated by the lack of comparative research on North-South and South-South foreign direct investment (FDI), especially on the service sector and on the African context, despite the rapid expansion of multinationals from developing and emerging countries over the last two decades. Theoretically, this thesis builds on strategy, corporate finance and organizational economics theories. The first chapter compares the financial performance of the foreign affiliates of global banks to that of regional African banks in sub-Saharan Africa over a 10-year period. The results suggest that affiliates of regional African banks are significantly less profitable (lower return on equity and higher cost income ratio) than those of global banks. Furthermore, the performance differentials are not strongly related to the quality and sectoral allocation of banks’ loan portfolio but to differences in their access to funding. The second chapter examines the benefits and drawbacks of being part of a large banking group by analyzing the flows of internal capital between foreign affiliates located in an emerging economy, South Africa, and their global headquarters. It provides evidence for a support motive to internal funding, as foreign affiliates receive on average more internal group funding when their solvency ratio declines. However, using the event of the East Asian Crisis, I show that foreign affiliates’ balance sheet are not immune to “reversal of fortune” when other members of their banking group need large amounts of internal capital to cushion capital losses, leading to abrupt reallocation of internal capital. Finally, using an instrument variable technique I find a positive impact of the volume of internal funding received by a foreign affiliate on its credit supply in the mortgage market. In the third chapter I examine how environmental and firm factors influence the organizational structure of multinational banks relying on survey data on commercial banks located in 14 sub-Saharan African countries. I find evidence of a positive and significant association between several indicators of environmental distance between host and home countries (institutional, economic and cultural distance) and centralization of operational processes inside multinationals. In addition, I find that lower quantity of “hard” information available on borrowers in the host markets and higher reliance on qualitative or “soft” information by bank managers is negatively and significantly associated with centralization.

This study aims to determine the main drivers of financial market development, with a specific interest in the relationship between the stock and bank credit markets, as proxies of financial market development, and the role of institutional quality, in ten African countries for the period of 2009 to 2017. A number of econometric techniques such as the General Methods of Moments (GMM) model for dynamic panel data, autoregressive distribution lag (ARDL) bound testing approach to cointegration, vector error correction model (VECM), and granger causality tests were applied in the study. We further developed a composite index for both financial market development and institutional quality using Principal Components Analysis (PCA). The results demonstrate that institutional quality, as well as infrastructure development, economic growth, and inflation are the main determinants of financial market development in our sample of ten African countries. Findings from the ARDL bound testing approach confirm the existence of a long-run association between institutional quality and financial market development. Although financial market development has no effect on economic growth, institutional quality was found to have a positive and highly significant effect on economic growth. Furthermore, employing the Granger causality test, we found uni-directional granger causality between financial market development and institutional quality, implying that financial market development is a significant causal factor for institutional quality. In consideration of these findings, policy formulation by governments should be designed towards enhancing financial and institutional quality development, and this can be possibly achieved by effective enforcement of law to encourage compliance, while simultaneously eliminating corruption and other institutional hindrances to development / Lolu cwaningo luhlose ukuveza izinhlaka ezingabaphembeleli abasemqoka ekuthuthukisweni kwezimakethe zezimali, kugxilwe kakhulu kubudlelwano obuphakathi kwesitoko kanye nezimakethe zamabhangi ahlinzekana ngezikweletu, njengabancedisi abathuthukisa izimakethe zezimali, kanye nendima emayelana nezinga leziko, emazweni ase-Afrika ayishumi esikhathini esiphakathi kuka 2009 ukufikela ku 2017. Inani lezindlela zokulinganisa izinga lomnotho ezinjenge-General Methods of Moments (GMM) model yedatha yephaneli eguquguqukayo, i-autoregressive distribution lag (ARDL) bound testing approach to cointegration, i-vector error correction model (VECM), Kanye negranger causality tests zisetshenzisiwe kucwaningo. Siqhubekele phambili nokwakha inkomba ehlangene yazo zombili izinhlaka; ukuthuthukiswa kwezimakethe zezimali Kanye nezinga leziko ngokusebenzisa uhlelo lwe-Principal Components Analysis (PCA). Imiphumela ikhombisile ukuthi izinga leziko, Kanye nokuthuthukiswa kwengqalasizinda, ukuhluma komnotho, Kanye nezinga lamandla email yizinkomba ezisemqoka zokuthuthukiswa kwezimakethe zezimali kusampuli yethu elula yamazwe ase-Afrika ayishumi. Ulwazi olutholakele ku-ARDL bound testing approach luqinisekisa ubukhona kobudlelwano besikhathi eside obuphakathi kwezinga leziko kanye nokuthuthukiswa kwezimakethe zezimali. Yize ukuthuthukiswa kwemakethe yezimali kungenawo umthelela kwezokuhluma komnotho, izinga leziko lona liye latholakala ukuthi linomthelela omuhle nosemqoka kakhulu ekukhuleni komnotho. Ngaphezu kwalokho, uma sisebenzisa uhlelo lweGranger causality test, sifumene i-uni-directional granger causality phakathi kwemakethe yezimali Kanye nezinga leziko, lokhu kuchaza ukuthi ukuthuthukiswa kwezimakethe zezimali kuyimbangela esemqoka yezinga leziko. Uma kubhekwa lolu lwazi olutholakele, imigomo eyakhwa uhulumeni kufanele yakhiwe ngenhloso yokuqinisa ukuthuthukiswa kwezinga lezimali Kanye nezinga leziko, kanti lokhu kungafinyelelwa ngokuqinisa kahle umthetho ukukhuthaza ukulandelwa komthetho, kanti ngakolunye uhlangothi kuncishiswe izinga lenkohlakalo Kanye nezinye izihibhe eziphazamiso ukuthuthukiswa kweziko. / Maikaelelo a thutopatlisiso ke go swetsa ka ditsamaisi tse dikgolo tsa tlhabololo ya mebaraka ya ditšhelete, ka kgatlhego e rileng mo kamanong magareng ga mebaraka ya setoko le ya sekoloto sa dibanka, jaaka kemedi ya tlhabololo ya mebaraka ya ditšhelete, le seabe sa boleng jwa ditheo, mo dinageng di le lesome tsa Aforika mo pakeng ya 2009 go ya go 2017. Go dirisitswe dithekeniki di le mmalwa tsa ikonometiriki di tshwana le sekao sa General Methods of Moments (GMM) sa data ya phanele e anameng, molebo wa tekeletso e kopanyang ya autoregressive distribution lag (ARDL), sekao sa vector error correction (VECM) le diteko tsa sesusumetsi tsa Granger. Gape re tlhamile tshupane ya dikarolo ya tlhabololo ya mmaraka wa ditšhelete le boleng jwa ditheo re dirisa Tokololo ya Dikarolo tse Dikgolo (Principal Components Analysis (PCA)). Dipholo di bontsha gore boleng jwa ditheo, gammogo le tlhabololo ya mafaratlhatlha, kgolo ya ikonomi le infoleišene ke diswetsi tsa tlhabololo ya mebaraka ya ditšhelete mo sampoleng ya rona ya dinaga di le lesome tsa Aforika. Diphitlhelelo go tswa mo molebong wa teko e kopanyang ya ARDL di tlhomamisa go nna teng ga kamano ya paka e telele magareng ga boleng jwa ditheo le tlhabololo ya mebaraka ya ditšhelete. Le fa tlhabololo ya mebaraka ya ditšhelete e sa ame kgolo ya ikonomi ka gope, boleng jwa ditheo bo fitlhetswe bo na le ditlamorago tse di siameng e bile di le botlhokwa mo kgolong ya ikonomi. Mo godimo ga moo, ka go dirisa teko ya Granger ya sesusumetsi, re fitlhetse go na le sesusumetsi sa ntlha e le nngwe sa Granger magareng ga lhabololo ya mebaraka ya ditšhelete le boleng jwa ditheo, mo go rayang gore tlhabololo ya mebaraka ya ditšhelete ke ntlha e e botlhokwa ya sesusumetsi sa boleng jwa ditheo. Fa go lebelelwa diphitlhelelo tseno, go dirwa ga dipholisi ke dipuso go tshwanetse ga dirwa gore go tokafatse tlhabololo ya boleng jwa ditšhelete le ditheo, mme seno se ka fitlhelelwa ka tiragatso e e bokgoni ya molao go rotloetsa kobamelo mme go ntse go fedisiwa bobodu le dikgoreletsi tse dingwe tsa tlhabololo mo ditheong. / Business Management / M. Com. (Business Management (Finance))