Does ICT diffusion contribute to Bank Stability in Africa?
Author: JOMI Jervis SAMBILLA*, Sergeo BENG CHE
Faculty of Economics and Management, University of Yaoundé II-SOA, Cameroon
Published Date: 2023-10-10
GoogleScholar: Click here
Keywords: ICT diffusion, Bank stability, panel GMM, Africa.
Abstract:
Nowadays, all financial institutions rely on ICT diffusion in gathering,
processing, analyzing and providing information to meet customers’ needs. In an
environment that is complex, competitive and dynamic, the diffusion of ICT in the
highly information sensitive banking sector comes with mixed blessings especially in
African context with under developed ICT tools. This article seeks to investigate the
effects of information and communication technologies (ICT) diffusion on bank
stability in Africa using a panel of 45 countries from 2004 to 2020. We employ the
system GMM as well as a two step GMM method of estimation to check for robustness
of the relationship between the variables. The results show a positive and significant
relationship between ICT and bank stability. This implies that policies aimed at
boosting ICT diffusion should not be neglected.
