Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/313598 
Year of Publication: 
2018
Citation: 
[Journal:] Review of Development Finance [ISSN:] 2959-0930 [Volume:] 8 [Issue:] 2 [Year:] 2018 [Pages:] 141-153
Publisher: 
Elsevier, Amsterdam
Abstract: 
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.
Subjects: 
Non-performing loans
Macroeconomic factors
Banking system
Panel data
Sub-Saharan Africa
JEL: 
E44
G21
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.