Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 350

Full Length Research Paper

Determinants of commercial banks’ performance in Malawi: An autoregressive distributed lag (ARDL) approach

Lloyd George Banda
  • Lloyd George Banda
  • The Reserve Bank of Malawi, P. O. Box 565, Henderson Street, Blantyre, Malawi.
  • Google Scholar

  •  Received: 30 August 2021
  •  Accepted: 21 October 2021
  •  Published: 31 October 2021


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 existence of both paradigms due to 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.


Key words: Malawi, principal component analysis (PCA), total bank deposit, bank concentration ratio, STATA.