TITLE:
Impact of Market Concentration on the Stability of the Banking Sector in the Central African Economic and Monetary Community (CEMAC)
AUTHORS:
Pierre Ghislain Batila Ngouala Kombo, Jacques Hakizimana, Charles Alexis Bouity
KEYWORDS:
Banking Concentration, Financial Stability, GMM, CEMAC
JOURNAL NAME:
Modern Economy,
Vol.12 No.5,
May
26,
2021
ABSTRACT: The objective of this
paper is to analyze the impact of banking market concentration on the stability
of the banking sector in the Economic Community of Central African States
(CEMAC). Using panel data from 2005 to 2015 and the system GMM technique, it is
found that deposit and credit market concentration have a destabilizing effect
on the banking system. Thus, it would be desirable to put in place mechanisms
that can help reduce the market power of certain banks to guarantee banking
stability.