Bank Specific Factors And Non-performing Loans of Commercial Banks In Liberia

This study investigates the nexus between bank-specific factors and nonperforming loans (NPLs) in Liberia's commercial banks through a retrospective panel study design, employing a quantitative approach based on the Moral Hazard Theory. Targeting the nine listed commercial banks in Liberia, the study focuses on key variables: return on equity (ROE), return on assets (ROA), bank cost efficiency, and bank income diversification. Data were sourced from certified audited records, and descriptive statistics, including correlation analysis via SPSS software, were applied. Results reveal a significant negative correlation (r = -0.957, p = 0.043) between ROE and NPLs at LBDI Bank. Conversely, no significant associations are found between ROA, bank cost efficiency, and bank income diversification with NPLs in commercial banks. The study underscores the centrality of ROE in influencing NPLs and recommends future research to incorporate a broader spectrum of both bank-specific and economic factors over an extended study period of 10-15 years for a comprehensive understanding of nonperforming loans in Liberia's commercial banks.

本研究旨在探讨利比里亚商业银行中，特定银行因素与不良贷款（NPLs）之间的关联，通过采用基于道德风险理论的定量方法，运用回顾性面板研究设计进行。研究聚焦于利比里亚九家上市商业银行，重点关注关键变量：净资产收益率（ROE）、总资产收益率（ROA）、银行成本效率和银行收入多元化。数据来源于经认证的审计记录，并应用了描述性统计方法，包括通过SPSS软件进行的相关性分析。结果显示，在LBDI银行中，ROE与不良贷款之间存在显著的负相关关系（r = -0.957，p = 0.043）。相反，在商业银行的不良贷款与ROA、银行成本效率和银行收入多元化之间并未发现显著的相关性。研究强调了ROE在影响不良贷款中的核心地位，并建议未来的研究应纳入更广泛的银行特定和经济因素，并在10-15年的较长研究期间内进行，以全面理解利比里亚商业银行的不良贷款状况。