Abstract
Risk is a great impediment confronting the performance of banks in Sub Saharan Africa. Liquidity and credit risk are the dominant form of risk affecting banking performance. This study seek to examine the effect of liquidity risk and credit risk on the performance of banks in Sub Saharan Africa. The study used a sample of fifty (50) banks drawn across six Sub Saharan African countries that include Nigeria, Ghana, South Africa, Zambia, Kenya and Tanzania. Two-step system generalized method of moment is the analysis tool used in the study. The findings from the study revealed that liquidity risk and credit risk are separately and jointly significant and negatively contribute to the performance of banks in Sub Saharan Africa. Banks management and practitioners are therefore encouraged to employ all the necessary measures to manage these risks under a single control as proposed in the Basel III regulatory provisions.
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Article Details
- Year: 2021
- Volume: 42
- Issue: 2
- Pages: 69 - 102
- Accepted: 12.04.2021
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DOI:
https://doi.org/10.5281/zenodo.17046533 -
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How to Cite?
Adamu Yahaya, Fauziah Mahat, M.H. Yahya (2021). Effect of Liquidity and Credit Risk on Banking Performance: Evidence from Sub Saharan Africa. Journal of Economic Cooperation and Development, 42(2), 69-102. https://doi.org/10.5281/zenodo.17046533
