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Moderating effect of non-performing loans on bank capitalisation, liquidity risk and risk governance to bank performance in Sub-Saharan Africa

The rate of banking failure across Sub-Saharan Africa is a great source of concern to all stakeholders in the industry, given the important role that banks play in promoting economic growth and development in the region. This study is motivated by the increase rate of poor banking performance despit...

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Main Author: Adamu, Yahaya
Format: Thesis
Language:English
Published: 2022
Subjects:
Banks and banking - Africa
Loans
Online Access:http://psasir.upm.edu.my/id/eprint/105596/1/SPE%202022%2019%20UPMIR.pdf
http://psasir.upm.edu.my/id/eprint/105596/
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spelling my.upm.eprints.1055962024-02-14T00:44:37Z http://psasir.upm.edu.my/id/eprint/105596/ Moderating effect of non-performing loans on bank capitalisation, liquidity risk and risk governance to bank performance in Sub-Saharan Africa Adamu, Yahaya The rate of banking failure across Sub-Saharan Africa is a great source of concern to all stakeholders in the industry, given the important role that banks play in promoting economic growth and development in the region. This study is motivated by the increase rate of poor banking performance despite all efforts by the regulators and management of banks to address it. The study aims to examine the moderating effect of non-performing loans on the impact of bank capitalization, liquidity risk and risk governance on bank performance with evidence from sub-Saharan Africa (SSA). A sample of 78 listed commercial banks across ten sub-Saharan Africa countries was drawn. The countries include, Nigeria, Ghana, South Africa, Kenya, Zambia, Tanzania, Mauritius, Malawi, Rwanda and Botswana that constitute the top performing economies within the region. The study covers a period of 9 years, from 2012 to 2020. The study employed a two-step system generalized method of moment as the method of inference. Findings from the study revealed a significant and positive relationship between bank capital, risk governance and bank performance, and a significant and negative relationship between liquidity risk, non-performing loans and bank performance. The moderation relationship is only significant for return on asset. The study therefore, makes the following recommendations; 1) a regular upward review of bank capital base, to be in line with global standard, 2) controlling the rate of non-performing loans and 3) increasing the number of risk experience members within the corporate governance structure of the banks. 2022-01 Thesis NonPeerReviewed text en http://psasir.upm.edu.my/id/eprint/105596/1/SPE%202022%2019%20UPMIR.pdf Adamu, Yahaya (2022) Moderating effect of non-performing loans on bank capitalisation, liquidity risk and risk governance to bank performance in Sub-Saharan Africa. Doctoral thesis, Universiti Putra Malaysia. Banks and banking - Africa Loans
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
topic Banks and banking - Africa
Loans
spellingShingle Banks and banking - Africa
Loans
Adamu, Yahaya
Moderating effect of non-performing loans on bank capitalisation, liquidity risk and risk governance to bank performance in Sub-Saharan Africa
description The rate of banking failure across Sub-Saharan Africa is a great source of concern to all stakeholders in the industry, given the important role that banks play in promoting economic growth and development in the region. This study is motivated by the increase rate of poor banking performance despite all efforts by the regulators and management of banks to address it. The study aims to examine the moderating effect of non-performing loans on the impact of bank capitalization, liquidity risk and risk governance on bank performance with evidence from sub-Saharan Africa (SSA). A sample of 78 listed commercial banks across ten sub-Saharan Africa countries was drawn. The countries include, Nigeria, Ghana, South Africa, Kenya, Zambia, Tanzania, Mauritius, Malawi, Rwanda and Botswana that constitute the top performing economies within the region. The study covers a period of 9 years, from 2012 to 2020. The study employed a two-step system generalized method of moment as the method of inference. Findings from the study revealed a significant and positive relationship between bank capital, risk governance and bank performance, and a significant and negative relationship between liquidity risk, non-performing loans and bank performance. The moderation relationship is only significant for return on asset. The study therefore, makes the following recommendations; 1) a regular upward review of bank capital base, to be in line with global standard, 2) controlling the rate of non-performing loans and 3) increasing the number of risk experience members within the corporate governance structure of the banks.
format Thesis
author Adamu, Yahaya
author_facet Adamu, Yahaya
author_sort Adamu, Yahaya
title Moderating effect of non-performing loans on bank capitalisation, liquidity risk and risk governance to bank performance in Sub-Saharan Africa
title_short Moderating effect of non-performing loans on bank capitalisation, liquidity risk and risk governance to bank performance in Sub-Saharan Africa
title_full Moderating effect of non-performing loans on bank capitalisation, liquidity risk and risk governance to bank performance in Sub-Saharan Africa
title_fullStr Moderating effect of non-performing loans on bank capitalisation, liquidity risk and risk governance to bank performance in Sub-Saharan Africa
title_full_unstemmed Moderating effect of non-performing loans on bank capitalisation, liquidity risk and risk governance to bank performance in Sub-Saharan Africa
title_sort moderating effect of non-performing loans on bank capitalisation, liquidity risk and risk governance to bank performance in sub-saharan africa
publishDate 2022
url http://psasir.upm.edu.my/id/eprint/105596/1/SPE%202022%2019%20UPMIR.pdf
http://psasir.upm.edu.my/id/eprint/105596/
_version_ 1792154546484543488
score 13.211869

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