Determinants of credit risk in the banking system in Sub-Saharan Africa
| Autor: | Eftychia Nikolaidou, Trust R. Mpofu |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2018 |
| Předmět: |
Economics and Econometrics
050208 finance Sub saharan 05 social sciences Monetary economics Private sector lcsh:HD72-88 lcsh:Economic growth development planning Real gross domestic product 0502 economics and business Financial crisis lcsh:Finance lcsh:HG1-9999 Economics Openness to experience 050207 economics Volatility (finance) Finance Credit risk Panel data |
| Zdroj: | Review of Development Finance, Vol 8, Iss 2, Pp 141-153 (2018) |
| ISSN: | 1879-9337 |
| Popis: | This paper investigates the macroeconomic determinants of credit risk in the banking system of 22 Sub-Saharan African economies. We measure credit risk as the ratio of non-performing loans to total gross loans (NPLs) and employ dynamic panel data methods over the period 2000–2016. Using a variety of specifications, the results show that an increase in real GDP growth rate has a statistically and economically significant reducing effect on the ratio of non-performing loans to total gross loans. Furthermore, inflation rate, domestic credit to private sector by banks as a percent of GDP, trade openness, VIX as a proxy of global volatility, and the 2008/2009 global financial crisis, all have positive and significant impact on NPLs. JEL classifications: E44, G21, Keywords: Non-performing loans, Macroeconomic factors, Banking system, Panel data, Sub-Saharan Africa |
| Databáze: | OpenAIRE |
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