Re-examining the Determinants of Non-Performing Loans in Ghana’s Banking Industry: Role of the 2007–2009 Financial Crisis

Re-examining the Determinants of Non-Performing Loans in Ghana’s Banking Industry: Role of the 2007–2009 Financial Crisis

Author: 
Amuakwa-Mensah, Franklin
Place: 
Oxon
Publisher: 
Taylor & Francis Group
Date published: 
2017
Record type: 
Responsibility: 
Marbuah, George, jt. author
Marbuah, Dinah Ani-Asamoah, jt. author
Journal Title: 
Journal of African Business
Source: 
Journal of African Business, Vol 18, No. 3, July-September 2017, pp. 357-379
Abstract: 

This paper uses robust econometric methods to estimate the determinants of non-performing loans (NPLs) with a specific focus on the role of the 2007–2009 financial crisis in explaining NPLs in the banking industry of Ghana. Findings suggest that non-performing loans are significantly affected by bank-specific, industry, and macroeconomic variables. We observed heterogeneity in the determinants of NPLs for sub-samples of the data. The effect of the financial crisis on NPLs is observed to be conditional on the level of credit risk in our sub-sample analysis. The results from the impulse response corroborate that of the regression estimation.

Language: 
Country focus: 

CITATION: Amuakwa-Mensah, Franklin. Re-examining the Determinants of Non-Performing Loans in Ghana’s Banking Industry: Role of the 2007–2009 Financial Crisis . Oxon : Taylor & Francis Group , 2017. Journal of African Business, Vol 18, No. 3, July-September 2017, pp. 357-379 - Available at: https://library.au.int/re-examining-determinants-non-performing-loans-ghana’s-banking-industry-role-2007–2009-financial