African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4131

Full Length Research Paper

Bank specific factors and bank performance in the multi-currency era in Zimbabwe

Rabson Magweva*
  • Rabson Magweva*
  • Department of Banking and Finance, Munhumutapa School of Commerce, P. O. Box 1235 Masvingo, Zimbabwe.
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Norman Marime
  • Norman Marime
  • Department of Banking and Finance, Munhumutapa School of Commerce, P. O. Box 1235 Masvingo, Zimbabwe.
  • Google Scholar


  •  Received: 10 May 2016
  •  Accepted: 27 July 2016
  •  Published: 14 August 2016

Abstract

The aim of the paper was to ascertain whether bank specific factors significantly impact on return on asset (ROA) as a measure of bank performance. This paper utilized quantitative methodology in ascertaining the relationship between bank internal features and bank performance in Zimbabwe. As all the variables are quantitative in nature, the researchers had no other option but to use quantitative method applying panel data models. The results indicated that bank specific indicators were not significant in determining bank performance but rather bank external factors could play a significant role in determining bank performance. The researchers recommended that the Central Bank embark on a softer stance as the level of capital does not significantly affect the return on assets of the firms, though it enhances soundness and stability of the sector.

Key words: Bank specific factors, bank performance, multi-currency era, bank performance indicators.