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Credit risk management and its impact on the profitability of Algerian banks: An applied study using Panel –Data model during the period 2009-2020

Author

Listed:
  • Fatma Benchenna

    (Associate professor, A, Department of Finance and Accounting, Kasdi Merbah University of Ouargla, Algeria)

  • Mohamed Djemoui Korichi

    (Professor, Department of Finance and Accounting, Kasdi Merbah University of Ouargla , Algeria)

Abstract

This study aims to investigate the relationship between credit risk management and the profitability of commercial banks by testing the impact of credit risk indicators on assessing the profitability of a sample of Algerian commercial banks during the period 2009-2020 by using a panel-data model. The results of the applied study indicate that: the ratio of loan loss provisions to total loans and capital adequacy ratio are the most important indicators of credit risk management that affect and contribute to evaluating the profitability of Algerian commercial banks.

Suggested Citation

  • Fatma Benchenna & Mohamed Djemoui Korichi, "undated". "Credit risk management and its impact on the profitability of Algerian banks: An applied study using Panel –Data model during the period 2009-2020," Review of Socio - Economic Perspectives 202303, Reviewsep.
    • Handle: RePEc:aly:journl:202303
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    References listed on IDEAS

    as
    1. Athanasoglou, Panayiotis P. & Brissimis, Sophocles N. & Delis, Matthaios D., 2008. "Bank-specific, industry-specific and macroeconomic determinants of bank profitability," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 18(2), pages 121-136, April.
    2. Idowu Abiola & Awoyemi Samuel Olausi, 2014. "The Impact of Credit Risk Management on the Commercial Banks Performance in Nigeria," International Journal of Management and Sustainability, Conscientia Beam, vol. 3(5), pages 295-306.
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    Cited by:

    1. Herry Achmad Buchory, 2023. "Banking Profitability: How do the banking intermediary, secondary reserve, operational efficiency, and credit risk effect?," GATR Journals jfbr214, Global Academy of Training and Research (GATR) Enterprise.

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    More about this item

    Keywords

    credit risk; bank profitability; loan loss provisions; capital adequacy; panel-data model; Algerian banks..;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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