Banking Supervision and Nonperforming Loans in Africa: Does Institutional Quality Matter in the Ghanaian Banking Space?

• DOI: 10.1080/15228916.2022.2087443
• Publication Date: 2022-06-20T14:27:50Z
• Authors: Joseph Ato Forson; Awaisu Imurana Br...; Samuel Kofi Asiamah; Raphael Kuranchie...; Edward Daniels; Samuel Evergreen ...
• Keywords: Credence

In this paper, we reexamine the determinants of nonperforming loans through impact supervisory devices in credit risk management Africa. The paper employs bank-specific, macroeconomic and institutional data for a panel 14 universal banks over period 2009 to 2020. We develop models that capture role regulatory supervision on risk. Findings from Panels Corrected Standard Errors (PCSE) system GMM shows previous year's NPL inflation significantly affect NPLs banking space Gana. Bank size financial development are inversely associated with NPLs. interactive term quality government effectiveness has net negative effect. This suggest enhances reductive effects Our findings general lends credence instability theory as Ghanaian context been outcome activities speculative borrowers.