Predicting Bank Credit Risk: Does Board Structure Matter?

Michael Adusei, Samuel Yaw Akomea and Ralph Nyadu-Addo

The International Journal of Business and Finance Research, 2014, vol. 8, issue 5, 59-70

Abstract: The study investigates the predictors of credit risk in the universal banking industry with panel data from universal banks in Ghana and finds that leverage, assets (size), loan loss provision, board size, board independence, and the number of executive directors on the board of a bank are the predictors of its credit risk. Based on these results, the study concludes that board structure matters in credit risk management of universal banks in Ghana. The recommendation is that banks could improve their credit risk management by formulating policies around these factors.

Keywords: Bank Credit Risk; Board Structure; Ghana (search for similar items in EconPapers)
JEL-codes: E5 G21 G34 N27 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (4)

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