The effects of revenue diversification and cross border banking on risk and return of banks in Africa

Abstract

The paper analyses the implications of revenue diversification and cross-border banking for risk and return. The authors sample 320 banks across 29 African countries and employ System GMM estimator as a methodological approach to shed further light on the diversification-stability nexus by examining the complex interaction between three key variables: cross-border banking, diversification and bank stability. This is an output from the ‘Delivering Inclusive Financial Development and Growth’ project