Aug 2026· Journal of Central Banking Theory and Practice· Vol 15, pp. 234 - 266· 0 citations· 52 references
Abstract
Abstract Banks play a vital role in a country’s financial system through their intermediation activities, which support economic development. However, the rise in non-performing loans (NPLs) has jeopardized the performance of banks in Sub-Saharan Africa (SSA). Moreover, the behavior of key macroeconomic factors and shocks to monetary policy are closely linked to this issue. This study examines the impact of monetary policy on NPLs in SSA using a panel vector autoregressive model, based on quarterly data from 23 countries spanning 2008Q1 to 2023Q4. The findings reveal that monetary policy shocks significantly affect NPL levels in SSA. Additionally, excessive domestic and external borrowing, inflationary pressures, and exchange rate volatility have substantial consequences for NPL accumulation. This study offers valuable insights into how macroeconomic factors interact to create banking stress and fragility, ultimately undermining financial stability in the region. It recommends that monetary authorities and governments implement credible monetary policies and maintain a stable macroeconomic environment to safeguard the financial sector.
This study develops a dynamic panel econometric framework to quantify the structural impact of macroeconomic conditions on the non-performing loan (NPL) ratios of commercial banks across a panel of twenty-eight emerging market economies observed between 2010 and 2024. Addressing dynamic persistence and the endogeneity...
Djamalov Gofir Oribjanovich· EPRA International Journal o...· 0 citations
This study examines the impact of monetary policy and financial inclusion on economic growth in Nigeria from 2004Q1 to 2024Q4 using quarterly data from the CBN, the World Bank development indicators and the national statistics bureau. The study uses a quantitative ex post facto time series approach, incorporating monet...
N. Abdullahi, Hope Elijah Tumba, Hamisu Ali et al.· Nigerian Journal of Sustaina...· 0 citations
The present paper aims to investigate the relationship between non-performing assets (NPAs) and profitability in Indian commercial banks. Focusing on the major economic disruptions, namely, the global financial crisis, demonetization and the COVID-19 pandemic, it examines their role in structurally reshaping the NP...
Faiz Ur Rehman, Mohammad Ammar Ahsan, S. Akhtar et al.· Journal of Financial Regulat...· 0 citations
The connection between macroeconomic policy and stock market dynamics of Iraqi private commercial banks is a gap in the literature which has traditionally neglected banking sectors in rentier economies. The oil-dependent economy in Iraq is a great place to look into how macroeconomic conditions influence financial mark...
Qasim Hameed Naser· Journal of Economics Researc...· 1 citation
This study examines the determinants of non-performing financing (NPF) using country-level Islamic banking system aggregates for the six Gulf Cooperation Council (GCC) countries, with particular attention to the role of global economic policy uncertainty and U.S. monetary policy uncertainty. Using a panel dataset cover...
L. Elmonshid· Journal of Risk and Financia...· 1 citation
While empirical literature on macroprudential policy exists for both advanced and emerging economies, studies that simultaneously analyze its effects on macroeconomic and financial variables within the Peruvian context are scarce, limiting the availability of evidence for the design of public policies aimed at preservi...
