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https://doi.org/10.2139/ssrn.84188

has been cited by the following article:

• TITLE: Effects of Banking Provisions on the Quality of Assets of Commercial Banks in the Central African Economic and Monetary Community (CEMAC): An Application by the Generalized Moments Method (GMM)

  AUTHORS: Elfy Deba Bangagnan Yanga

  KEYWORDS: Banking, Provisions, Quality of Assets

  JOURNAL NAME: Modern Economy, Vol.15 No.4, April 25, 2024

  ABSTRACT: The main objective of this article is to analyze the impact of bank provisions on the asset quality of CEMAC commercial banks over the period 2004-2018 using panel data analysis and the generalized method of moments. The results of this study showed a strong positive relationship between bank provisions (PCS) and nonperforming loans (NPLs). Return on assets (ROA) and inflation showed a significant negative impact. However, the rate of gross domestic product (TxGDP), return on equity (ROE) and the ratio of deposits to loans (RCD) did not have a significant impact on NPLs. CEMAC commercial banks should anticipate high levels of capital losses when creating higher provisions, reducing the volatility of results and strengthening their solvency in the medium term.