Credit risk and bank performance: a Sub-Saharan African perspective
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, Gha...
| Main Authors: | , , |
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| Format: | Article |
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Inderscience Publishers
2024
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| Online Access: | http://psasir.upm.edu.my/id/eprint/112057/ |
| _version_ | 1848865844235337728 |
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| author | Yahaya, Adamu Mahat, Fauziah Mamman, Aliyu |
| author_facet | Yahaya, Adamu Mahat, Fauziah Mamman, Aliyu |
| author_sort | Yahaya, Adamu |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-15T14:11:10Z |
| format | Article |
| id | upm-112057 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-15T14:11:10Z |
| publishDate | 2024 |
| publisher | Inderscience Publishers |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1120572024-10-28T03:34:49Z http://psasir.upm.edu.my/id/eprint/112057/ Credit risk and bank performance: a Sub-Saharan African perspective Yahaya, Adamu Mahat, Fauziah Mamman, Aliyu 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. Inderscience Publishers 2024 Article PeerReviewed 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 https://www.inderscienceonline.com/doi/pdf/10.1504/AAJFA.2024.137359 10.1504/AAJFA.2024.137359 |
| spellingShingle | Yahaya, Adamu Mahat, Fauziah Mamman, Aliyu Credit risk and bank performance: a Sub-Saharan African perspective |
| title | Credit risk and bank performance: a Sub-Saharan African perspective |
| title_full | Credit risk and bank performance: a Sub-Saharan African perspective |
| title_fullStr | Credit risk and bank performance: a Sub-Saharan African perspective |
| title_full_unstemmed | Credit risk and bank performance: a Sub-Saharan African perspective |
| title_short | Credit risk and bank performance: a Sub-Saharan African perspective |
| title_sort | credit risk and bank performance: a sub-saharan african perspective |
| url | http://psasir.upm.edu.my/id/eprint/112057/ http://psasir.upm.edu.my/id/eprint/112057/ http://psasir.upm.edu.my/id/eprint/112057/ |