Does regulatory convergence shape banking resilience in Africa?

This study examines the effects of Basel III regulatory harmonization on banking stability across 21 African nations from 2011 to 2022, using a system-GMM estimation to address endogeneity and enhance causal interpretation. Stability is operationalized through Z-scores, non-performing loan ratios, and weighted composite indices, offering a robust, multi-dimensional perspective on systemic resilience. Findings suggest that Basel III compliance enhances stability across key metrics, yet reveal a trade-off wherein liquidity buffers may detract from operational efficiency unless optimally rectified to local conditions.