Credit risk management and its impact on the profitability of Algerian banks: An applied study using Panel –Data model during the period 2009-2020
Fatma Benchenna
Department of Finance and Accounting, Kasdi Merbah University of OuarglaAlgeria
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and Mohamed Djemoui Korichi
Department of Finance and Accounting, Kasdi Merbah University of OuarglaAlgeria
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Apr 30, 2023
About this article
Published Online: Apr 30, 2023
Page range: 31 - 39
Received: Jan 11, 2023
Accepted: Mar 22, 2023
DOI: https://doi.org/10.19275/rsep146
Keywords
© 2023 Fatma Benchenna et al., published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 International License.
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.