Bank-Specific Determinants of Credit Risk for Commercial Banks: An Applied Study of a Sample of Algerian Commercial Banks During The Period 2007 - 2019
Abstract
This study aims to monitor a group of factors that causes the credit risk and contributes to the occurrence of non-performing loans problem in the Algerian commercial banks by testing the determinants of credit risk and the explanatory factors of the non-performing loans problem to a sample of Algerian commercial banks during the period 2007-2019, using Panel data models. The main results of the applied study indicate that: The explanatory variables of the credit risk that causes the non-performing loans problem in the Algerian commercials banks, by using the loan loss provisions to total loans index ratio are: the bank size; the Inefficiency ratio and the deposit’s interest rate. The results confirm the validity of the Size Effect Hypothesis, the Skimping Hypothesis and the Deposit Rate Effect Hypothesis.
Downloads
References
- Abedalfattah, Z. A.-A., & Faris, N. A.-S. (2013). Analysis The determinants of Credit Risk in Jordanian Banking: An Empirical Study. Management Research and Practice, 5(3), 21-30.
- Ahmad, F., & Bashir, T. (2013). xplanatory Power of Bank Specific Variables as Determinants ofNon-Performing Loans: Evidence from Pakistan Banking Sector. World Applied Sciences Journal, 22(9), 1220-1231.
- al - samadi, m. o. (2010). credit risk , macroeconomic and bank specific factors in jordanian banks. Universiti Utara Malaysia, Doctor of Philosophy.
- Belaid, F. (2014). Loan quality determinants: evaluating the contribution of bank-specific variables, macroeconomic factors and firm level information. International and Development Studies Working Paper(04).
- Berger, A. N., & DeYoung, R. (1997). Problem Loans and Cost Efficiency in Commercial Banks. Journal of Banking and Finance, 21.
- Chaibi, H. (2016). Determinants of Problem Loans: Non-performing Loans vs. Loan Quality Deterioration. International Business Research, 9(10).
- Dimitrios P, L., & all. (2011). Macroeconomic and bank-specific determinants of non-performing loans in Greece: A comparative study of mortgage, business and consumer loan portfolios. Journal of Banking & Finance.
- Fan Li, Y. Z. (2014). The Impact of Credit Risk Management on Profitability of Commercial Banks: A Study of Europe. Umea university, Sweden.
- Ganić, M. (2014). Bank Specific Determinants of Credit Risk - An Empirical Study on the Banking Sector of Bosnia and Herzegovina. International Journal of Economic Practices and Theories, 4(4), 428 -436.
- Griffith, M., & all. (2002). CEO ownership, corporate control, and bank performance. Journal of Economics and Finance, 26(2).
- Gujarati. (2004). Basic Econometrics (Fourth Edition ed.). (C. The McGraw−Hill, Ed.)
- Herry, A. B. (2015). Banking Intermediation, Operational Efficiency and Credit Risk in The Banking Profitability. International Journal of Business, Economics and Law, 7(2), 58.
- Jin-Li, H., & all. (2004). Ownership and Non-performing Loans: Evidencefrom Taiwan’s Banks. Developing Economies, 405-420.
- Misman, F. N. (2012). Financing Structures, Bank Specific Variables and Credit Risk: Malaysian Islamic Banks. Journal of Business and Policy Research, 7(1).
- Morina, D. (2020). Determinants of Credit Risk in Commercial Banks of Kosovo. Intrnational Journal of Economics and Business Administration, VIII(2), 179-190.
- Shingjergji, A. (2013). The Impact of Bank Specific Variables on the Non Performing Loans Ratio in the Albanian Banking System. Research Journal of Finance and Accounting, 4(7), 148- 152.
- Tehulu, T. A., & Olana, D. R. (2014). Bank- Specific Determinants of Credit Risk: Empirical Evidence from Ethiopian Banks,. Research Journal of Finance and Accounting, 5(7), 80 - 85 .
- Tobias, O., & Themba, M. S. (2011). Effects of Banking Sectoral Factors on The Profitability of Commercial Banks in Kenya. Economics and Finance Review, 1(5), 5.
Copyright (c) 2022 Fatma Benchenna
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
