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Indexed by:会议论文

Date of Publication:2015-01-01

Included Journals:CPCI-SSH

Page Number:167-171

Key Words:Government Regulation; Bank Risk; Bank Performance and Panel Evidence Regression

Abstract:The performance of the banking sector for most Sub-Saharan African Countries in the 1990s was mixed and witnessed low level of capital for investment. This scenario was the case for Sierra Leone, the performance of the banking sector in the 1990s and mid 2000s was relatively mixed. Given the devastating effects of banks' risk of default and performance on growth, we investigate the moderating role of government regulation on bank risk and performance in Sierra Leone from 19982013, using Panel Least Square regression approach. This study reveals the following key results: (i) All the independent variables are statistically significance at the 5% and 10%, except inflation which is found to be insignificant; (ii) Banks takes more risk when blanket guarantee scheme and lower minimum capital requirement are in effect, and takes low risk when blanket guarantee scheme with higher capital adequacy requirement are instituted.