Credit risk in South African banks negatively impacts financial performance, study finds.
The article looks at how credit risk affects the financial performance of South African banks from 2008 to 2018. They found that higher non-performing loans lead to lower profitability. Bank growth and capital adequacy improve financial performance, while bank leverage has a negative impact. It's important for banks to have strict credit policies to reduce non-performing loans and for regulators to supervise banks to prevent failures.