Fuchs, MichaelBeck, ThorstenSinger, DorotheWitte, Makaio2014-09-182014-09-182014978-3-944152-39-4https://hdl.handle.net/10986/20248Cross-border banking has been a critical part of Africa's financial history since colonial times. While the period after independence saw a wave of nationalization across the continent, with many of the colonial banks exiting, this trend was reversed in the 1980s with the arrival of financial liberalization. Failing state-owned and private banks were sold mostly to global investors or multinational banks. Increasing international and regional economic integration, including of financial services, and deregulation further increased the number of foreign banks and by the mid-2000s many African banking systems were yet again dominated by foreign banks. This introductory chapter documents trends in cross-border banking in Africa and the increasing shift in the composition of foreign banks in Africa. The next section provides a short overview of financial systems in Africa to set the stage. Section two characterizes the population of cross-border banks operating in Africa today, their expansion across the continent, and their importance in the host countries. Section three explores the reasons for the expansion of cross-border banking on the continent. Section four assesses the different business models banks use to expand across the continent as well as the characteristics of their group structures. Section five concludes.en-USCC BY 3.0 IGOACCESS TO FINANCIAL SERVICESACCOUNTINGAFFILIATEAFFILIATESAGRICULTURAL FINANCEASSET MANAGEMENTBANK ACCESSBANK BRANCHESBANK FAILUREBANK FAILURESBANK FOR INTERNATIONAL SETTLEMENTSBANK GOVERNORSBANK HOLDING COMPANYBANK OFFICIALSBANK REGULATIONBANK RESTRUCTURINGBANK SUPERVISORSBANKING CRISISBANKING MODELSBANKING REGULATIONBANKING SECTORBANKING SERVICESBANKING SUPERVISIONBANKING SYSTEMBANKING SYSTEMSBROKERAGEBROKERAGE FIRMSBUSINESS OPPORTUNITIESCAPACITY BUILDINGCAPITAL REQUIREMENTCAPITAL REQUIREMENTSCAPITALIZATIONCENTRAL BANKSCOLLATERALCOMMERCIAL BANKCOMMERCIAL BANKSCOMMODITYCOMMON MARKETCOMPLIANCE COSTSCONSOLIDATED SUPERVISIONCONSOLIDATIONCORPORATE CLIENTSCOST OF CREDITCREDIT ALLOCATIONCREDIT BUREAUSCREDIT INFORMATIONCREDIT INFORMATION SYSTEMSCREDIT MARKETSCREDIT REGISTRIESCREDIT REGISTRYCREDIT RISKCREDITORSCROSS-BORDER BANKINGCROSS-BORDER COOPERATIONCROSS-BORDER EXPANSIONCURRENCYDEPOSITDEPOSIT FUNDINGDEPOSITORSDEPOSITSDEREGULATIONDEVELOPING ECONOMIESDEVELOPMENT BANKDOMESTIC BANKEARNINGSECONOMIC AGENTSECONOMIC COOPERATIONECONOMIC CRISESECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC INTEGRATIONECONOMIES OF SCALEEMERGING MARKETSENTRY POINTEUROPEAN CENTRAL BANKEXPOSUREEXTERNAL SHOCKSFINANCIAL CONGLOMERATESFINANCIAL CRISISFINANCIAL DEEPENINGFINANCIAL DEPTHFINANCIAL FRAGILITYFINANCIAL INFRASTRUCTUREFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INTEGRATIONFINANCIAL INTERMEDIATIONFINANCIAL LIBERALIZATIONFINANCIAL LITERACYFINANCIAL MARKETSFINANCIAL OUTREACHFINANCIAL SECTORFINANCIAL SECTOR ASSESSMENTFINANCIAL SECTOR DEVELOPMENTFINANCIAL SECTOR POLICIESFINANCIAL SECTOR REFORMSFINANCIAL SECTORSFINANCIAL SERVICEFINANCIAL SERVICE PROVIDERSFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL SYSTEMFINANCIAL SYSTEM STABILITYFINANCIAL SYSTEMSFINANCIAL TRANSACTIONSFOREIGN BANKFOREIGN BANKSFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFORMAL FINANCIAL SERVICESGLOBAL INVESTORSGOVERNMENT INTERVENTIONGOVERNMENT INTERVENTIONSGOVERNMENT SECURITIESGUARANTYHARMONIZATIONHOLDING COMPANIESHOME COUNTRIESHOME COUNTRYHOUSEHOLDSINCOMEINSIDER LENDINGINSTITUTION BUILDINGINSURANCEINTEREST RATEINTEREST RATESINTERNATIONAL BANKINTERNATIONAL BANKINGINTERNATIONAL BANKSINTERNATIONAL RESERVESINVESTMENT OPPORTUNITIESJOINT VENTUREJOINT VENTURESJURISDICTIONJURISDICTIONSLENDERSLEVEL PLAYING FIELDLIQUIDITYLOANLOAN PORTFOLIOLOAN PORTFOLIOSLOCAL ENTERPRISESLOW-INCOME COUNTRIESMAJORITY OF SHARESMAJORITY SHAREHOLDERMARKET STRUCTUREMFIMFISMICRO FINANCEMICROFINANCEMICROFINANCE INSTITUTIONMICROFINANCE INSTITUTIONSMINISTRIES OF FINANCEMINORITY SHAREHOLDERMULTINATIONALNATURAL RESOURCENATURAL RESOURCESNEW MARKETNEW MARKETSOUTREACHOWNERSHIP STRUCTUREPAYMENT SERVICESPAYMENT SYSTEMSPAYMENTS SYSTEMPAYMENTS SYSTEMSPRIVATE BANKSPRIVATE CREDITPRIVATE SECTOR DEVELOPMENTPRIVATE SECTOR LENDERPROFIT MARGINSPUBLIC CREDITPUBLIC INVESTMENTRAPID EXPANSIONREFORM PROGRAMSREGULATORSREGULATORY AUTHORITIESREGULATORY AUTHORITYREGULATORY BODIESREGULATORY FRAMEWORKSREGULATORY GAPSREGULATORY POLICIESRESERVE BANK OF NEW ZEALANDRETAIL BANKINGRISK EXPOSURESRISK MANAGEMENTSAVINGSSECURITIESSHARE OF ASSETSSHAREHOLDERSHAREHOLDERSSOCIAL RESPONSIBILITYSTOCK MARKETSTRUCTURAL ADJUSTMENTSUBSIDIARIESSUBSIDIARYSUPERVISORY AUTHORITIESSYSTEMIC BANKING CRISESTECHNICAL ASSISTANCETHE SOUTH AFRICAN RESERVE BANKTRADITIONAL BANKINGUNIONUNIONSVIRTUOUS CYCLEVOLATILITYWORKING CAPITALWORLD DEVELOPMENT INDICATORSWORLD TRADEDeutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and International Bank for Reconstruction and Development / The World Bank10.1596/978-3-944152-39-4