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Determinants of credit risk in the banking system in Sub-Saharan Africa

Trust R. Mpofu & Eftychia Nikolaidou

Review of Development Finance2018https://doi.org/10.1016/j.rdf.2018.08.001article
AJG 2
Weight
0.71

What the paper says

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

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https://doi.org/https://doi.org/10.1016/j.rdf.2018.08.001

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@article{trust2018,
  title        = {{Determinants of credit risk in the banking system in Sub-Saharan Africa}},
  author       = {Trust R. Mpofu & Eftychia Nikolaidou},
  journal      = {Review of Development Finance},
  year         = {2018},
  doi          = {https://doi.org/https://doi.org/10.1016/j.rdf.2018.08.001},
}

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Determinants of credit risk in the banking system in Sub-Saharan Africa

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Evidence weight

0.71

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.92 × 0.4 = 0.37
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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