Bank regulatory capital and performance: evidence from Sub Saharan Africa
Continuous failure of banks witnessed across the Sub Saharan African region is a great source of concern among practitioners and society. The study seeks to evaluate the association between bank regulatory capital and performance. A panel of 50 public listed banks was drawn across 6 Sub Saharan Afri...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Statistical Economic and Social Research and Training Centre for Islamic Countries
2020
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| Online Access: | http://psasir.upm.edu.my/id/eprint/88007/1/ABSTRACT.pdf |
| _version_ | 1825952437808136192 |
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| author | Yahaya, Adamu Mahat, Fauziah Matemilola, Bolaji Tunde |
| author_facet | Yahaya, Adamu Mahat, Fauziah Matemilola, Bolaji Tunde |
| author_sort | Yahaya, Adamu |
| collection | UPM |
| description | Continuous failure of banks witnessed across the Sub Saharan African region is a great source of concern among practitioners and society. The study seeks to evaluate the association between bank regulatory capital and performance. A panel of 50 public listed banks was drawn across 6 Sub Saharan African countries for a period of 9 years (2010-2018). This research paper makes use of
the two-step system-generalized method of moment (GMM) as the most relevant technique of estimation due to its advantages of mitigating endogeneity problems and providing consistent estimates. The study found that bank regulatory capital has a positive significant association with performance. Moreover, the non-performing loan was found to have a negative significant
association with bank performance. The results suggest that bank management should keep their non-performing loans at the barest minimal rate and ensure compliance with bank capital regulations. |
| first_indexed | 2024-03-06T10:44:37Z |
| format | Article |
| id | upm.eprints-88007 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T10:44:37Z |
| publishDate | 2020 |
| publisher | Statistical Economic and Social Research and Training Centre for Islamic Countries |
| record_format | dspace |
| spelling | upm.eprints-880072022-05-24T04:36:06Z http://psasir.upm.edu.my/id/eprint/88007/ Bank regulatory capital and performance: evidence from Sub Saharan Africa Yahaya, Adamu Mahat, Fauziah Matemilola, Bolaji Tunde Continuous failure of banks witnessed across the Sub Saharan African region is a great source of concern among practitioners and society. The study seeks to evaluate the association between bank regulatory capital and performance. A panel of 50 public listed banks was drawn across 6 Sub Saharan African countries for a period of 9 years (2010-2018). This research paper makes use of the two-step system-generalized method of moment (GMM) as the most relevant technique of estimation due to its advantages of mitigating endogeneity problems and providing consistent estimates. The study found that bank regulatory capital has a positive significant association with performance. Moreover, the non-performing loan was found to have a negative significant association with bank performance. The results suggest that bank management should keep their non-performing loans at the barest minimal rate and ensure compliance with bank capital regulations. Statistical Economic and Social Research and Training Centre for Islamic Countries 2020 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/88007/1/ABSTRACT.pdf Yahaya, Adamu and Mahat, Fauziah and Matemilola, Bolaji Tunde (2020) Bank regulatory capital and performance: evidence from Sub Saharan Africa. Journal of Economic Cooperation and Development, 41 (1). 31 - 60. ISSN 1308-7800 https://www.proquest.com/openview/4bd29bc55d3dcea23f5503f8211ca7aa/1?pq-origsite=gscholar&cbl=1096395 |
| spellingShingle | Yahaya, Adamu Mahat, Fauziah Matemilola, Bolaji Tunde Bank regulatory capital and performance: evidence from Sub Saharan Africa |
| title | Bank regulatory capital and performance: evidence from Sub Saharan Africa |
| title_full | Bank regulatory capital and performance: evidence from Sub Saharan Africa |
| title_fullStr | Bank regulatory capital and performance: evidence from Sub Saharan Africa |
| title_full_unstemmed | Bank regulatory capital and performance: evidence from Sub Saharan Africa |
| title_short | Bank regulatory capital and performance: evidence from Sub Saharan Africa |
| title_sort | bank regulatory capital and performance evidence from sub saharan africa |
| url | http://psasir.upm.edu.my/id/eprint/88007/1/ABSTRACT.pdf |
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