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Bank profitability determinants in Africa: A review of literature

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  • Ozili, Peterson K

Abstract

The study presents a review of existing research on bank profitability determinants in Africa. Using the literature review methodology, it was found that bank profitability determinants differ across countries in all regions of Africa. Some suggested areas for future research are to explore the impact of circular economy, fintech activities, the pandemic, and economic uncertainty on the profitability of African banks. The implication of the review findings is that bank profitability determinants will remain a contested research agenda in the banking literature.

Suggested Citation

  • Ozili, Peterson K, 2024. "Bank profitability determinants in Africa: A review of literature," MPRA Paper 120777, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:120777
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    File URL: https://mpra.ub.uni-muenchen.de/120777/1/MPRA_paper_120777.pdf
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    References listed on IDEAS

    as
    1. Ismail Adelopo & Robert Lloydking & Venancio Tauringana, 2018. "Determinants of bank profitability before, during, and after the financial crisis," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 14(4), pages 378-398, March.
    2. Lee J. Cohen & Marcia Millon Cornett & Alan J. Marcus & Hassan Tehranian, 2014. "Bank Earnings Management and Tail Risk during the Financial Crisis," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 46(1), pages 171-197, February.
    3. Noorhan Elkhayat & Mona A ElBannan, 2018. "State Divestitures and Bank Performance: Empirical Evidence from the Middle East and North Africa Region," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 8(2), pages 145-171.
    4. Ghosh, Saibal, 2016. "Political transition and bank performance: How important was the Arab Spring?," Journal of Comparative Economics, Elsevier, vol. 44(2), pages 372-382.
    5. Aebi, Vincent & Sabato, Gabriele & Schmid, Markus, 2012. "Risk management, corporate governance, and bank performance in the financial crisis," Journal of Banking & Finance, Elsevier, vol. 36(12), pages 3213-3226.
    6. Mohammad Bitar & Wadad Saad & Mohammed Benlemlih, 2016. "Bank Risk and Performance in the MENA Region: The Importance of Capital Requirements," Post-Print halshs-01321636, HAL.
    7. Dietrich, Andreas & Wanzenried, Gabrielle, 2011. "Determinants of bank profitability before and during the crisis: Evidence from Switzerland," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 21(3), pages 307-327, July.
    8. Albertazzi, Ugo & Gambacorta, Leonardo, 2009. "Bank profitability and the business cycle," Journal of Financial Stability, Elsevier, vol. 5(4), pages 393-409, December.
    9. Noorhan Elkhayat & Mona A. ElBannan, 2018. "State Divestitures and Bank Performance: Empirical Evidence from the Middle East and North Africa Region," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 8(2), pages 145-171, February.
    10. Sanderson Abel & Pierre Le Roux, 2016. "Determinants of Banking Sector Profitability in Zimbabwe," International Journal of Economics and Financial Issues, Econjournals, vol. 6(3), pages 845-854.
    11. Ismail Adelopo & Robert Lloydking & Venancio Tauringana, 2018. "Determinants of bank profitability before, during, and after the financial crisis," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 14(4), pages 378-398, March.
    12. Bitar, Mohammad & Saad, Wadad & Benlemlih, Mohammed, 2016. "Bank risk and performance in the MENA region: The importance of capital requirements," Economic Systems, Elsevier, vol. 40(3), pages 398-421.
    13. Danisman, Gamze Ozturk & Demir, Ender & Ozili, Peterson, 2021. "Loan loss provisioning of US banks: Economic policy uncertainty and discretionary behavior," International Review of Economics & Finance, Elsevier, vol. 71(C), pages 923-935.
    14. Aytekin Ertan, 2022. "Real earnings management through syndicated lending," Review of Accounting Studies, Springer, vol. 27(4), pages 1157-1198, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    African banks; profitability determinants; banks; bank profitability; Europe; Africa; regulation;
    All these keywords.

    JEL classification:

    • G00 - Financial Economics - - General - - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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