LEADER 07088oam 22015494 450 001 9910788349203321 005 20230721045631.0 010 $a1-4623-3156-4 010 $a1-4527-4806-3 010 $a1-282-84237-4 010 $a1-4518-7162-7 010 $a9786612842375 035 $a(CKB)3170000000055181 035 $a(EBL)1608139 035 $a(SSID)ssj0000943305 035 $a(PQKBManifestationID)11985090 035 $a(PQKBTitleCode)TC0000943305 035 $a(PQKBWorkID)10975479 035 $a(PQKB)10021156 035 $a(OCoLC)426149243 035 $a(MiAaPQ)EBC1608139 035 $a(IMF)WPIEE2009015 035 $a(EXLCZ)993170000000055181 100 $a20020129d2009 uf 0 101 0 $aeng 135 $aurcn||||||||| 181 $ctxt 182 $cc 183 $acr 200 14$aThe Determinants of Commercial Bank Profitability in Sub-Saharan Africa /$fValentina Flamini, Liliana Schumacher, Calvin McDonald 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2009. 215 $a1 online resource (32 p.) 225 1 $aIMF Working Papers 300 $aDescription based upon print version of record. 311 $a1-4519-1598-5 320 $aIncludes bibliographical references. 327 $aContents; 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 Margins 327 $aFigure 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 with 327 $aTable 9. Estimation Results Using Random EffectsReferences 330 3 $aBank profits are high in Sub-Saharan Africa (SSA) compared to other regions. This paper uses a sample of 389 banks in 41 SSA countries to study the determinants of bank profitability. We find that apart from credit risk, higher returns on assets are associated with larger bank size, activity diversification, and private ownership. Bank returns are affected by macroeconomic variables, suggesting that macroeconomic policies that promote low inflation and stable output growth does boost credit expansion. The results also indicate moderate persistence in profitability. Causation in the Granger sense from returns on assets to capital occurs with a considerable lag, implying that high returns are not immediately retained in the form of equity increases. Thus, the paper gives some support to a policy of imposing higher capital requirements in the region in order to strengthen financial stability. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2009/015 606 $aBank profits$zAfrica, Sub-Saharan 606 $aBanks and banking$zAfrica, Sub-Saharan 606 $aBanks and Banking$2imf 606 $aFinance: General$2imf 606 $aInvestments: Stocks$2imf 606 $aMacroeconomics$2imf 606 $aInflation$2imf 606 $aFinancial Markets and the Macroeconomy$2imf 606 $aBanks$2imf 606 $aDepository Institutions$2imf 606 $aMicro Finance Institutions$2imf 606 $aMortgages$2imf 606 $aGeneral Financial Markets: Government Policy and Regulation$2imf 606 $aFinancing Policy$2imf 606 $aFinancial Risk and Risk Management$2imf 606 $aCapital and Ownership Structure$2imf 606 $aValue of Firms$2imf 606 $aGoodwill$2imf 606 $aPension Funds$2imf 606 $aNon-bank Financial Institutions$2imf 606 $aFinancial Instruments$2imf 606 $aInstitutional Investors$2imf 606 $aPersonal Income, Wealth, and Their Distributions$2imf 606 $aPrice Level$2imf 606 $aDeflation$2imf 606 $aBanking$2imf 606 $aFinance$2imf 606 $aFinancial services law & regulation$2imf 606 $aInvestment & securities$2imf 606 $aBank soundness$2imf 606 $aCredit risk$2imf 606 $aStocks$2imf 606 $aPersonal income$2imf 606 $aFinancial sector policy and analysis$2imf 606 $aFinancial regulation and supervision$2imf 606 $aFinancial institutions$2imf 606 $aNational accounts$2imf 606 $aPrices$2imf 606 $aBanks and banking$2imf 606 $aFinancial risk management$2imf 606 $aIncome$2imf 607 $aUnited States$2imf 615 0$aBank profits 615 0$aBanks and banking 615 7$aBanks and Banking 615 7$aFinance: General 615 7$aInvestments: Stocks 615 7$aMacroeconomics 615 7$aInflation 615 7$aFinancial Markets and the Macroeconomy 615 7$aBanks 615 7$aDepository Institutions 615 7$aMicro Finance Institutions 615 7$aMortgages 615 7$aGeneral Financial Markets: Government Policy and Regulation 615 7$aFinancing Policy 615 7$aFinancial Risk and Risk Management 615 7$aCapital and Ownership Structure 615 7$aValue of Firms 615 7$aGoodwill 615 7$aPension Funds 615 7$aNon-bank Financial Institutions 615 7$aFinancial Instruments 615 7$aInstitutional Investors 615 7$aPersonal Income, Wealth, and Their Distributions 615 7$aPrice Level 615 7$aDeflation 615 7$aBanking 615 7$aFinance 615 7$aFinancial services law & regulation 615 7$aInvestment & securities 615 7$aBank soundness 615 7$aCredit risk 615 7$aStocks 615 7$aPersonal income 615 7$aFinancial sector policy and analysis 615 7$aFinancial regulation and supervision 615 7$aFinancial institutions 615 7$aNational accounts 615 7$aPrices 615 7$aBanks and banking 615 7$aFinancial risk management 615 7$aIncome 700 $aFlamini$b Valentina$01491224 701 $aSchumacher$b Liliana$01462059 701 $aMcDonald$b Calvin$01491225 801 0$bDcWaIMF 906 $aBOOK 912 $a9910788349203321 996 $aThe Determinants of Commercial Bank Profitability in Sub-Saharan Africa$93712971 997 $aUNINA