The Impact of Commodity Price Shocks on Banking System Stability in Developing Countries

This study examines the impact of commodity price shocks on banking sector stability 18 African commodity-exporting economies using an unbalanced panel dataset spanning a 16-year period from 2000–2015. The economies’ sectors was estimated fixed effects model. empirical findings indicate that increase bank credit risk (non-performing loans) and, thus, pose to economies. results for disaggregated reveal both positive and negative weaken stability. In addition, are discovered decrease extension private sector, highlighting additional channel through which may be perpetuated real economy.