07088oam 22015494 450 991078834920332120230721045631.01-4623-3156-41-4527-4806-31-282-84237-41-4518-7162-79786612842375(CKB)3170000000055181(EBL)1608139(SSID)ssj0000943305(PQKBManifestationID)11985090(PQKBTitleCode)TC0000943305(PQKBWorkID)10975479(PQKB)10021156(OCoLC)426149243(MiAaPQ)EBC1608139(IMF)WPIEE2009015(EXLCZ)99317000000005518120020129d2009 uf 0engurcn|||||||||txtccrThe Determinants of Commercial Bank Profitability in Sub-Saharan Africa /Valentina Flamini, Liliana Schumacher, Calvin McDonaldWashington, D.C. :International Monetary Fund,2009.1 online resource (32 p.)IMF Working PapersDescription based upon print version of record.1-4519-1598-5 Includes bibliographical references.Contents; I. Introduction; II. Literature Review; III. Data and Methodology; IV. Empirical Results; V. Concluding Remarks and Some Implications for Policymakers; Figures; Figure 1. Time Series of Sub-Saharan African Countries' Return on Assets; Figure 2. Average Return on Assets by Income Group (2006); Figure 3. Sub-Saharan Africa Return on Assets by Country (2006); Figure 4. Distribution of Sub-Saharan Africa Return on Assets (2006); Figure 5. Time Series of Sub-Saharan Africa's Return on Assets by Income Group; Figure 6. Time Series of Sub-Saharan Africa's Net Interest MarginsFigure 7. Average Net Interest Margins by Income Group (2006)Tables; Table 1. Account Decomposition of Banks by Income Group; Table 2. Account Decomposition of Sub-Saharan African Banks; Table 3. Variable Definition and Notation; Table 4. Descriptive Statistics; Table 5. Estimation Results; Table 6. Sargan Test for Alternative Model with All Variables Strictly Exogenous; Control Variables Table 7. Granger-Causality Test Between Return on Asset and Capital Without; Control Variables Table 8. Granger-Causality Test Between Return on Asset and Capital withTable 9. Estimation Results Using Random EffectsReferencesBank 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. We find 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. The results also indicate moderate persistence in profitability. Causation in the Granger sense from returns on assets to capital occurs with a considerable lag, implying that high returns are not immediately retained in the form of equity increases. Thus, the paper gives some support to a policy of imposing higher capital requirements in the region in order to strengthen financial stability.IMF Working Papers; Working Paper ;No. 2009/015Bank profitsAfrica, Sub-SaharanBanks and bankingAfrica, Sub-SaharanBanks and BankingimfFinance: GeneralimfInvestments: StocksimfMacroeconomicsimfInflationimfFinancial Markets and the MacroeconomyimfBanksimfDepository InstitutionsimfMicro Finance InstitutionsimfMortgagesimfGeneral Financial Markets: Government Policy and RegulationimfFinancing PolicyimfFinancial Risk and Risk ManagementimfCapital and Ownership StructureimfValue of FirmsimfGoodwillimfPension FundsimfNon-bank Financial InstitutionsimfFinancial InstrumentsimfInstitutional InvestorsimfPersonal Income, Wealth, and Their DistributionsimfPrice LevelimfDeflationimfBankingimfFinanceimfFinancial services law & regulationimfInvestment & securitiesimfBank soundnessimfCredit riskimfStocksimfPersonal incomeimfFinancial sector policy and analysisimfFinancial regulation and supervisionimfFinancial institutionsimfNational accountsimfPricesimfBanks and bankingimfFinancial risk managementimfIncomeimfUnited StatesimfBank profitsBanks and bankingBanks and BankingFinance: GeneralInvestments: StocksMacroeconomicsInflationFinancial Markets and the MacroeconomyBanksDepository InstitutionsMicro Finance InstitutionsMortgagesGeneral Financial Markets: Government Policy and RegulationFinancing PolicyFinancial Risk and Risk ManagementCapital and Ownership StructureValue of FirmsGoodwillPension FundsNon-bank Financial InstitutionsFinancial InstrumentsInstitutional InvestorsPersonal Income, Wealth, and Their DistributionsPrice LevelDeflationBankingFinanceFinancial services law & regulationInvestment & securitiesBank soundnessCredit riskStocksPersonal incomeFinancial sector policy and analysisFinancial regulation and supervisionFinancial institutionsNational accountsPricesBanks and bankingFinancial risk managementIncomeFlamini Valentina1491224Schumacher Liliana1462059McDonald Calvin1491225DcWaIMFBOOK9910788349203321The Determinants of Commercial Bank Profitability in Sub-Saharan Africa3712971UNINA