Access the full text.
Sign up today, get DeepDyve free for 14 days.
References for this paper are not available at this time. We will be adding them shortly, thank you for your patience.
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. Keywords: credit risk; universal banking; bad debt; dynamic panel data; ArellanoBond estimation; Ghana. Reference to this paper should be made as follows: Amuakwa-Mensah, F., Marbuah, G., Sam, V.N. and Barimah, A. (2015) `Credit risk and universal banking: evidence from the banking industry in Ghana', Int. J. Computational Economics and Econometrics, Vol. 5,
International Journal of Computational Economics and Econometrics – Inderscience Publishers
Published: Jan 1, 2015
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.