Credit risk dynamics in listed local banks in Zimbabwe (2009-2013)

Blessing Katuka

MPRA Paper from University Library of Munich, Germany

Abstract: This paper looked at credit risk drivers in local listed banks in Zimbabwe by applying a combination of static and dynamic models using monthly decomposed data. Static models used in this study are Pooled OLS, random effect and fixed effect models whilst difference and system GMM were the only two dynamic models analyzed. Findings reveled that credit risk is largely explained by the macroeconomic environment than the internal environment. This thinking was evidenced by insignificance of microeconomic variables in the all static models as well as significances of one microeconomic variable in both dynamic models. The study rendered capital adequacy ratio as statistically significant microeconomic variable in explaining its linkage with credit risk.

Keywords: Zimbabwe; Local banks; Generalized Method of Moments; Dollarization. (search for similar items in EconPapers)
JEL-codes: E5 E51 (search for similar items in EconPapers)
Date: 2017, Revised 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Journal of Economics and Sustainable Development 22.8(2017): pp. 33-38

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/92687/1/MPRA_paper_92687.pdf original version (application/pdf)

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:pra:mprapa:92687

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().