Journal of Economics and Development Studies

Effect of Credit Risk on the Efficiency of Banks in Member Countries of the Economic and Monetary Community of Central Africa (Cemac)
Elfy Deba BANGAGNAN YANGA

Abstract
The objective of this article is to determine the effect of credit risk on the efficiency of banks in the member countries of the Economic and Monetary Community of Central Africa (CEMAC). To achieve this goal, we used the stochastic boundary method to determine the efficiency score of CEMAC banks. Based on this score, we applied the Tobit model to show the effect of credit risk on the efficiency of banks over the period 2004-2017. The results obtained reveal that CEMAC banks are inefficient in terms of cost and that the credit risk measured from the ratio between bad debts and loans granted negatively influences the efficiency of these banks.

Full Text: PDF     DOI: 10.15640/jeds.v8n4a4