Full Text Available
Note: Clicking the button above will open the full text document at the original institutional repository in a new window.
Impact of the global financial crisis and its implications for the Zambian banking sector: an econometric study
The research examines how the banking sector in Zambia faired in the wake of the global financial crisis, and the ensuing global recession that followed. Even prior to the crisis, weaknesses within the Zambian Banking sector were already identified by a World Bank/IMF financial sector assessment....
Saved in:
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Thesis |
| Language: | English |
| Published: |
Research of GSB
2019
|
| Subjects: | |
| Tags: |
No Tags, Be the first to tag this record!
|
| _version_ | 1867613231433908224 |
|---|---|
| access_status_str | Open Access |
| author | Sichula, Mwembe |
| author2 | Mukuddem-Petersen, Janine |
| author_browse | Mukuddem-Petersen, Janine Sichula, Mwembe |
| author_facet | Mukuddem-Petersen, Janine Sichula, Mwembe |
| author_sort | Sichula, Mwembe |
| collection | Thesis |
| description | The research examines how the banking sector in Zambia faired in the wake of the global
financial crisis, and the ensuing global recession that followed. Even prior to the crisis,
weaknesses within the Zambian Banking sector were already identified by a World Bank/IMF financial sector assessment. The research therefore aims to gain a better understanding of the potential destabilizing factors to the Zambia Banking sector, and provide key players (Policymakers, Regulators and Banks) with knowledge on how best to manage and overcome these adverse effects, in times of a financial crisis. A Vector Error Correction Model (VECM) is estimated using commonly identified macroeconomic and banking sector indicators from selected Anglophonic African countries that were affected by the crisis at the time. The selected variables include, Return on Assets (ROA); Non-Performing Loans (NPL); Foreign Assets (FA); Interbank Lending Rate (IBLR); Liquidity (LQD); Credit to Private Sector (PRV); Foreign Exchange Rate (FOREX); Inflation (INFL); Copper Price (CU); and a ‘dummy’ variable (CRISIS). The direction of causality between the variables is further established using the VAR Granger Causality Test. Results of the model suggests that although the CRISIS was found to cause the ROA, it had no significant effect on its outcome, implying that overall the crisis had very little effect on the Zambian banking sector’s profitability. It was the liquidity (LQD) variable instead which was found to have a significant effect on the ROA. In times of a financial crisis, it is therefore recommended that policy makers and regulators apply more stringent regulatory and monetary policy instruments. This would counter the adverse effects on the liquidity and profitability of the Banking sector, and thus ensure its stability. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/29936 |
| institution | University of Cape Town (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:32:51.499Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2019 |
| publishDateRange | 2019 |
| publishDateSort | 2019 |
| publisher | Research of GSB |
| publisherStr | Research of GSB |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/29936 Impact of the global financial crisis and its implications for the Zambian banking sector: an econometric study Sichula, Mwembe Mukuddem-Petersen, Janine Financial Crisis, Zambian Banking Sector, Foreign Ownership, Banking Sector Factors, Macro-Economic Factors, Econometric Models, VECM, VAR Granger Causality The research examines how the banking sector in Zambia faired in the wake of the global financial crisis, and the ensuing global recession that followed. Even prior to the crisis, weaknesses within the Zambian Banking sector were already identified by a World Bank/IMF financial sector assessment. The research therefore aims to gain a better understanding of the potential destabilizing factors to the Zambia Banking sector, and provide key players (Policymakers, Regulators and Banks) with knowledge on how best to manage and overcome these adverse effects, in times of a financial crisis. A Vector Error Correction Model (VECM) is estimated using commonly identified macroeconomic and banking sector indicators from selected Anglophonic African countries that were affected by the crisis at the time. The selected variables include, Return on Assets (ROA); Non-Performing Loans (NPL); Foreign Assets (FA); Interbank Lending Rate (IBLR); Liquidity (LQD); Credit to Private Sector (PRV); Foreign Exchange Rate (FOREX); Inflation (INFL); Copper Price (CU); and a ‘dummy’ variable (CRISIS). The direction of causality between the variables is further established using the VAR Granger Causality Test. Results of the model suggests that although the CRISIS was found to cause the ROA, it had no significant effect on its outcome, implying that overall the crisis had very little effect on the Zambian banking sector’s profitability. It was the liquidity (LQD) variable instead which was found to have a significant effect on the ROA. In times of a financial crisis, it is therefore recommended that policy makers and regulators apply more stringent regulatory and monetary policy instruments. This would counter the adverse effects on the liquidity and profitability of the Banking sector, and thus ensure its stability. 2019-03-26T12:47:15Z 2019-03-26T12:47:15Z 2018 Thesis MCom http://hdl.handle.net/11427/29936 en application/pdf Research of GSB Faculty of Commerce University Of Cape Town |
| spellingShingle | Financial Crisis, Zambian Banking Sector, Foreign Ownership, Banking Sector Factors, Macro-Economic Factors, Econometric Models, VECM, VAR Granger Causality Sichula, Mwembe Impact of the global financial crisis and its implications for the Zambian banking sector: an econometric study |
| title | Impact of the global financial crisis and its implications for the Zambian banking sector: an econometric study |
| title_full | Impact of the global financial crisis and its implications for the Zambian banking sector: an econometric study |
| title_fullStr | Impact of the global financial crisis and its implications for the Zambian banking sector: an econometric study |
| title_full_unstemmed | Impact of the global financial crisis and its implications for the Zambian banking sector: an econometric study |
| title_short | Impact of the global financial crisis and its implications for the Zambian banking sector: an econometric study |
| title_sort | impact of the global financial crisis and its implications for the zambian banking sector an econometric study |
| topic | Financial Crisis, Zambian Banking Sector, Foreign Ownership, Banking Sector Factors, Macro-Economic Factors, Econometric Models, VECM, VAR Granger Causality |
| url | http://hdl.handle.net/11427/29936 |
| work_keys_str_mv | AT sichulamwembe impactoftheglobalfinancialcrisisanditsimplicationsforthezambianbankingsectoraneconometricstudy |