Credit risk and universal banking: evidence from the banking industry in Ghana
by Franklin Amuakwa-Mensah; George Marbuah; Victoria N. Sam; Alfred Barimah
International Journal of Computational Economics and Econometrics (IJCEE), Vol. 5, No. 4, 2015

Abstract: Using a dynamic panel data and an Arellano-Bond estimation technique, we estimate the determinants of credit risk and the effect of the introduction of universal banking licence on credit risk in the banking industry of Ghana. We find that the effect of universal banking policy on credit risk in the banking industry depends on the definition of credit risk. Using total loan to total asset ratio as a proxy for credit risk, we observe a positive effect of universal banking policy on credit risk in all our models, indicating that universal banking policy has the potential of increasing credit risk. However, there is a mixed and weak effect of universal banking policy on credit risk when we define credit risk as bad debt to total loan ratio. Also, we find that both bank-specific and macroeconomic variables do explain credit risk in the banking industry of Ghana.

Online publication date: Thu, 08-Oct-2015

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Computational Economics and Econometrics (IJCEE):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com