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

Authors

Keywords:

credit risk, bank profitability, loan loss provisions, capital adequacy, panel-data model, Algerian banks

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.

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Published

2023-04-30

Issue

Vol. 8 No. 1 (2023): Review of Socio-Economic Perspectives

Section

Research Articles

License

Authors retain copyright and typically publish under a Creative Commons license (CC BY-NC 4.0), allowing for broad dissemination and reuse.

Important notice: ‘Starting from Vol 10 , Issue 1, 2025 the title will be published under the licence CC BY-NC 4.0.