Asset quality in a crisis period: An empirical examination of Ghanaian banks

Abdul Latif Alhassan; Anthony Kyereboah-Coleman; Charles Andoh

doi:10.1016/j.rdf.2014.03.001

Asset quality in a crisis period: An empirical examination of Ghanaian banks

Abdul Latif Alhassan, Anthony Kyereboah-Coleman, Charles Andoh

Research output: Contribution to journal › Article › peer-review

74 Citations (Scopus)

Abstract

This paper examines the factors that account for the deterioration in the asset quality of Ghanaian banks during a period of financial crises using a unique dataset on 25 banks from 2005 to 2010. Based on system Generalized Method of Moments estimations, we find that the persistence of non-performing loans in addition to loan growth, bank market structure, bank size, inflation, real exchange rate and GDP growth are the significant determinants of banks asset quality in Ghana. The findings have implications for both bank management and regulators in emerging economies.

Original language	English
Pages (from-to)	50-62
Number of pages	13
Journal	Review of Development Finance
Volume	4
Issue number	1
DOIs	https://doi.org/10.1016/j.rdf.2014.03.001
Publication status	Published - 2014
Externally published	Yes

Keywords

Asset quality
Banks
Financial stability
Ghana
Non-performing loans

Access to Document

10.1016/j.rdf.2014.03.001

Cite this

@article{3e885316b15c4ec7b852f3d19bdf0c46,

title = "Asset quality in a crisis period: An empirical examination of Ghanaian banks",

abstract = "This paper examines the factors that account for the deterioration in the asset quality of Ghanaian banks during a period of financial crises using a unique dataset on 25 banks from 2005 to 2010. Based on system Generalized Method of Moments estimations, we find that the persistence of non-performing loans in addition to loan growth, bank market structure, bank size, inflation, real exchange rate and GDP growth are the significant determinants of banks asset quality in Ghana. The findings have implications for both bank management and regulators in emerging economies.",

keywords = "Asset quality, Banks, Financial stability, Ghana, Non-performing loans",

author = "Alhassan, \{Abdul Latif\} and Anthony Kyereboah-Coleman and Charles Andoh",

year = "2014",

doi = "10.1016/j.rdf.2014.03.001",

language = "English",

volume = "4",

pages = "50--62",

journal = "Review of Development Finance",

issn = "1879-9337",

publisher = "Africagrowth Institute",

number = "1",

}

TY - JOUR

T1 - Asset quality in a crisis period

T2 - An empirical examination of Ghanaian banks

AU - Alhassan, Abdul Latif

AU - Kyereboah-Coleman, Anthony

AU - Andoh, Charles

PY - 2014

Y1 - 2014

N2 - This paper examines the factors that account for the deterioration in the asset quality of Ghanaian banks during a period of financial crises using a unique dataset on 25 banks from 2005 to 2010. Based on system Generalized Method of Moments estimations, we find that the persistence of non-performing loans in addition to loan growth, bank market structure, bank size, inflation, real exchange rate and GDP growth are the significant determinants of banks asset quality in Ghana. The findings have implications for both bank management and regulators in emerging economies.

AB - This paper examines the factors that account for the deterioration in the asset quality of Ghanaian banks during a period of financial crises using a unique dataset on 25 banks from 2005 to 2010. Based on system Generalized Method of Moments estimations, we find that the persistence of non-performing loans in addition to loan growth, bank market structure, bank size, inflation, real exchange rate and GDP growth are the significant determinants of banks asset quality in Ghana. The findings have implications for both bank management and regulators in emerging economies.

KW - Asset quality

KW - Banks

KW - Financial stability

KW - Ghana

KW - Non-performing loans

UR - https://www.scopus.com/pages/publications/84901604810

U2 - 10.1016/j.rdf.2014.03.001

DO - 10.1016/j.rdf.2014.03.001

M3 - Article

AN - SCOPUS:84901604810

SN - 1879-9337

VL - 4

SP - 50

EP - 62

JO - Review of Development Finance

JF - Review of Development Finance

IS - 1

ER -

Asset quality in a crisis period: An empirical examination of Ghanaian banks

Abstract

Keywords

Access to Document

Other files and links

Fingerprint

Cite this