The Impact of Derivatives Use on Systemic Risk of Africa’s Banking System

Bibliographic Data

ID21737486
AuthorsAudrey Nguema Bekale (0000-0003-0809-5326, University of the Witwatersrand), Imhotep Paul Alagidede (0000-0003-1571-0227, University of the Witwatersrand), Jones Odei‐Mensah (0000-0002-7086-0298, corresponding author)
Year2024
Volume25
Issue3
Pages486-508
Publication date2024-07-02
Open AccessNo
TypeARTICLE
VenueJournal of African Business (JOURNAL)
Journal identifiersISSN: 1522-8916 • E-ISSN: 1522-9076
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/15228916.2023.2185431
OpenAlexW4322744790
LanguageEN
References cited21

This paper contributes to the debate about Africa’s financial stability by focusing on the prevalence of systemic risk in 40 listed derivatives user-banks over 2011–2017, employing the systemic risk index (SRI), and subsequently exploring how it links to the continent’s financial market development. The systemic risk buildup within the industry is mainly depicted as an unstable, diluted, and possibly depleting process. Gloomy predictions persist in the subsequent attempts to uncover plausible causes of systemic risk formation. Mainly, conventional defining factors for risk exhibit irrelevance toward systemic risk development, as threats to financial stability remain confined within the industry, supported by a lack of diversification in financial services. The investigated markets may be individually subject to internal vulnerabilities that could be exacerbated by financial shocks, feedback effects, and the likelihood of contagion and failure among financial institutions

Business · Economics · Financial crisis · Financial market · Financial risk management · Financial stability · Financial system · Macroeconomics · Risk management · Systemic risk · Banking stability, regulation, efficiency · Insurance and Financial Risk Management · Risk Management in Financial Firms · Finance

Tools

Open DOI