The Determinants Of Commercial Bank Profitability In Sub-Saharan Africa

Provided by: International Monetary Fund
Topic: Software
Format: PDF
Bank profits are high in Sub-Saharan Africa (SSA) compared to other regions. This paper uses a sample of 389 banks in 41 SSA countries to study the determinants of bank profitability. The author finds that apart from credit risk, higher returns on assets are associated with larger bank size, activity diversification, and private ownership. Bank returns are affected by macroeconomic variables, suggesting that macroeconomic policies that promote low inflation and stable output growth does boost credit expansion.

Find By Topic