Specific Factors Affecting Nonperforming Loans from Banks in Member Countries of the Economic and Monetary Community of Central Africa (CEMAC) — Oak Academic Publishing
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Specific Factors Affecting Nonperforming Loans from Banks in Member Countries of the Economic and Monetary Community of Central Africa (CEMAC)
Laboratory of Economic and Social Research and Studies (LARES), Faculty of Economics, Marien Ngouabi University, Brazzaville, Republic of the Congo
1 Laboratory of Economic and Social Research and Studies (LARES), Faculty of Economics, Marien Ngouabi University, Brazzaville, Republic of the Congo
The banking system plays a significant role in economic activity. It connects agents with financial capacity and those with a need for funding. The objective of this study is to determine the specific factors that influence the nonperforming loans of CEMAC banks. This research covers the six (6) CEMAC countries over a period from 2004 to 2017. To achieve this objective, we used the dynamic ordinary least squares (DOLS) method. The obtained results show that factors such as the ratio of loans to total bank assets (RPA), return on assets (ROA) and the ratio of loans to deposits (RCD) increase nonperforming loans from CEMAC banks.
KeywordsNonperforming LoansFactorsBanksDOLSCEMAC
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