Please use this identifier to cite or link to this item: https://www.um.edu.mt/library/oar/handle/123456789/87255
Title: Does financial inclusion reduce non-performing loans and loan loss provisions?
Authors: Ozili, Peterson K.
Adamu, Ahmed
Keywords: Banks and banking -- Finance
Economic stabilization
Bank accounts
Loans
Loan loss reserves
Issue Date: 2021
Publisher: Governance Research and Development Centre, Croatia & University of Malta, Faculty of Economics, Management and Accountancy, Department of Insurance
Citation: Ozili, P. K., & Adamu, A. (2021). Does financial inclusion reduce non-performing loans and loan loss provisions? Journal of Corporate Governance, Insurance and Risk Management, 8(2), 10-24.
Abstract: We examine whether countries that have high levels of financial inclusion have fewer non-performing loans and loan loss provisions in their banking sectors. The fixed effect panel regression methodology was used to analyse the effect of financial inclusion on bank non-performing loans and loan loss provisions. Using data from 48 countries, we find that greater formal account ownership is associated with high non-performing loans. Bank loan loss provisions are fewer in countries that have high levels of financial inclusion only when financial inclusion is achieved through the combined use of formal account ownership, bank branch supply and ATM supply. Also, non-performing loans are fewer in countries that experience economic boom and high levels of financial inclusion.
URI: https://www.um.edu.mt/library/oar/handle/123456789/87255
Appears in Collections:JCGIRM, Volume 8, Issue 2, 2021

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