Determinants of non-performing loans and their impact on profitability in South African banks

dc.contributor.authorMogagabe, N
dc.contributor.otherMogagabe, Ntebogeng
dc.date.accessioned2022-01-27T20:53:53Z
dc.date.available2022-01-27T20:53:53Z
dc.date.issued2021
dc.descriptionA research report submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Management in Finance and Investments, 2021en_ZA
dc.description.abstractThe study aimed to examine the determinants (macroeconomic and bank specific) of non-performing loans in South Africa and assess the impact of non-performing loans on banking profitability. It has been demonstrated by the above statistics that South African banks are facing bad loan debt repayments which in turn turns into non-performing loans. Although it can be argued that the level of non-performing loans in South Africa is relatively low, the level of bank credit impairments threatens bank stability in the economy. The study was based on the cointegration and Granger causality method which was applied to panel data drawn from a sample of 8 banks. The granger causality test indicated that no variable Granger causes non-performing loans although non-performing loans granger caused GDP and capital adequacy. Furthermore, the Granger causality test indicated that non-interest income to total income Granger causes return on assets. Therefore, non-interest income to total income is a significant determinant of bank profitability as measured by return on assetsen_ZA
dc.description.librarianCKen_ZA
dc.facultyFaculty of Commerce, Law and Managementen_ZA
dc.identifier.urihttps://hdl.handle.net/10539/32647
dc.language.isoenen_ZA
dc.rights.holderUniversity of the Witswatersrand, Johannesburg
dc.schoolWits Business Schoolen_ZA
dc.subjectSouth African banks
dc.subjectLoans
dc.subjectDeterminants
dc.subjectMacroeconomic
dc.subjectNon-performing loans
dc.subject.otherSDG-8: Decent work and economic growth
dc.titleDeterminants of non-performing loans and their impact on profitability in South African banksen_ZA
dc.typeDissertationen_ZA

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