Determinants of Bank Credit Risk in Developing Economies: Evidence from Benin

Kevin Ghislain Adjé

International Business Research, 2018, vol. 11, issue 4, 154-163

Abstract: Our study mainly focuses on the determinants of credit risk of Beninese banks. Theoretical and empirical literature teach us that both external and internal factors are the determinants of credit risk. From a sample of seven (07) commercial banks (only one of which is listed on the BRVM), we tested the simultaneous effect of external and internal factors on credit risk over the period 2004-2013. After an econometric analysis on panel data (fixed effect model estimated by the PCSE method), it appears that the "growth of GDP", "credit by signature", "interest margin" and the "proportion of institutional administrator "are the determinants of credit risk. Therefore, political authorities and bank officials could improve credit risk management by issuing policies on these factors.

Keywords: balanced panel; bank governance; benin; credit risk; determinant (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ccsenet.org/journal/index.php/ibr/article/view/73443/40984 (application/pdf)
http://www.ccsenet.org/journal/index.php/ibr/article/view/73443 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ibn:ibrjnl:v:11:y:2018:i:4:p:154-163

Access Statistics for this article

More articles in International Business Research from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().