Title: Banking governance and credit risk: evidence from Tunisian banks

Authors: Khaoula Aliani; Gleya Souilah; Imen Mhamid

Addresses: Business Administration Department, Princess Nourah Bint Abdulrahman University, PNU, Riyadh, KSA; Higher Institute of Business Administration, Gafsa, Tunisia ' Higher Institute of Business Administration, Gafsa, Tunisia ' Higher Institute of Business Administration, Gafsa, Tunisia

Abstract: The purpose of this research is to study the impact of corporate governance on credit risk of Tunisian banks. We are particularly interested in the board of directors as an internal mechanism of corporate governance. From a sample of 11 Tunisian listed banks, during the period 2008 to 2013, our empirical results reveal that the high level of capitalisation, the board and the bank size have positive impact on the banks' credit risk. However, the duality of the CEO as well as the foreign directors' influence negatively affects the credit risk of Tunisian banks. Furthermore, the presence of directors representing the state tends to increase the credit risk. Board diversity, independent directors and audit quality have no significant effects on the credit risk.

Keywords: credit risk; corporate governance; board of directors; Tunisian banks.

DOI: 10.1504/IJGFI.2021.116834

International Journal of Governance and Financial Intermediation, 2021 Vol.1 No.2, pp.139 - 154

Received: 12 Oct 2018
Accepted: 18 Nov 2018
Published online: 04 Aug 2021 *

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