Does competition improve bank insolvency risk through a revenue diversification channel and what are the drivers that underlie diversification? Using a panel dataset of 978 banks, H-statistic and the Lerner index as measures of the degree of competition in the banking sector, and employing three...

Purpose – This paper investigates competitive bank behaviour in Africa for the period 1999–2008 and further examines the impact of institutional quality and political atmosphere on competitive bank behaviour. Design/methodology/approach – This study used panel data methodology based on the...