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The coronavirus (COVID-19) crisis, which has hit financial systems across Africa, is likely to deteriorate banks' balance sheets. The largest threat to banks pertains to their loan portfolios, since many borrowers have faced a sharp collapse in their income, and therefore have difficulty...
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credit quality and raise non-performing loans from already high levels. Banks have a critical role to play not only during …
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framework and second, we test whether capitalization impacts the credit growth of microfinance institutions (MFIs) through the …
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credit risk. Using bank-level data for a sample of 221 banks from 33 countries over the period 2000-15, we find a non …-linear or U-shaped relationship between bank competition (measured by the Lerner Index) and credit risk. In other words …, increased bank competition has the potential to lower credit risk via efficiency gains (lower credit cost, operational gains …
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