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Credit risk and bank performance: a Sub-Saharan African perspective


Citation

Yahaya, Adamu and Mahat, Fauziah and Mamman, Aliyu (2024) Credit risk and bank performance: a Sub-Saharan African perspective. Afro-Asian Journal of Finance and Accounting, 14 (2). pp. 170-191. ISSN 1751-6447; ESSN: 1751-6455

Abstract

Credit risk is one of the dominant risks that pose a great threat to the performance of banks. This study examines the effect of credit risk on the performance of banks in Sub-Saharan Africa (SSA). A total sample of 50 banks was drawn from six Sub-Saharan African countries which include Nigeria, Ghana, South Africa, Zambia, Kenya, and Tanzania from 2010–2018. A two-step system GMM is applied and the findings reveal a significant negative relationship between credit risk and bank performance in the SSA region. The risk committee has a significant positive impact on the performance of banks in the SSA region. Bank management is encouraged to embrace a modern and efficient credit risk management technique to have better control of the rate of credit risk experienced in banks. Copyright © 2024 Inderscience Enterprises Ltd.


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Additional Metadata

Item Type: Article
Divisions: School of Business and Economics
DOI Number: https://doi.org/10.1504/AAJFA.2024.137359
Publisher: Inderscience Publishers
Keywords: Credit risk; Earning per share; Return on asset; Ssa; Sub-saharan africa; Two-step system gmm
Depositing User: Ms. Azian Edawati Zakaria
Date Deposited: 28 Oct 2024 03:34
Last Modified: 28 Oct 2024 03:34
Altmetrics: http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.1504/AAJFA.2024.137359
URI: http://psasir.upm.edu.my/id/eprint/112057
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