Profitability and bank risk-taking in CEMAC

Abstract

Results: It appears that economic profitability, as well as liquidity and gross domestic product, significantly reduces the bank risk-taking in the CEMAC while inflation and high equity encourage it. Originality/Relevance: To expand the empirical literature on the effects of profitability on the taking of banks in the CEMAC. Studies of this kind within the sub-region being quite rare Theoretical/methodological contributions: Mobilize different theoretical concepts in order to provide a corpus of the effects of profitability on banks' risk-taking. Social/management contributions: This study provides private and public decision-makers with a toolbox to deal with banks’risk-taking, the consequences of which can be harmful for society as a whole.

Keywords

• Economic profitability, financial profitability, bank risk-taking