Open AccessDeterminants of Commercial Banks' Performance in Malawi: An Autoregressive Distributed Lag (ARDL) Approach
Author(s) -
Lloyd George Banda
Publication year - 2021
Publication title -
national accounting review
Language(s) - English
Resource type - Journals
ISSN - 2689-3010
DOI - 10.3934/nar.2021022
Subject(s) - distributed lag , profitability index , autoregressive model , lag , econometrics , globe , monetary economics , business , economics , financial system , computer science , finance , biology , computer network , neuroscience
There has been a monotonic increase in research investigating the performance of commercial banks across the globe. This is a recognition that the banking industry has a significant contribution to the service sector and national output. This paper examined the existence of the structure-conduct performance (SCP) and efficient market hypotheses by employing an autoregressive distributed lag (ARDL) approach for a period between 1990 and 2020. The study revealed the existed of both paradigms due to a strongly statistically positive and significant coefficients of bank concentration and the size of the banking sector using the computed composite profitability measure (CPM). The paper suggests various policy implications on internal and external determinants of commercial bank's performance.