Ayagre, P.Kusi, B.Dzeha, G.Kriese, M.2024-05-282024-05-282022DOI 10.1108/AJEMS-08-2021-0352http://ugspace.ug.edu.gh:8080/handle/123456789/42048Research ArticlePurpose: In this study, the authors present unique evidence on bank lending types by paying particular attention to the factors that drive the different types of bank lending in Africa using bank-level data. Design/methodology/approach – In presenting such evidence, the study employs a robust fixed effect panel data with year and technological controls comprising 57 banks from 29 African economies between 2006 and and 2015. Findings: The results show that different factors affect different bank lending types differently in Africa. Specifically, while the authors find that total or aggregate bank lending is positively driven by bank capitalization and spread but negatively driven by bank size, corporate and commercial bank lending is positively driven by bank size, spread, inflation, elections and extent of business disclosure but negatively driven by bank capitalization, loan loss reserves, operational costs, and gross domestic product per capita. Moreover, interbank lending is both negatively and positively driven by bank capitalization and size respectively, while other bank lending type are driven positively by financial crises but negatively by bank size, inflation and extent of business disclosure. Finally, retail and consumer lending are positively driven by bank capitalization, loan loss reserves, and spread. while negatively driven by bank size and inflation. Practical implications: These imply that bank managers, regulators, policymakers and researchers must begin to see each bank lending category separately and independently since varying factors influence the different categories of bank lending differently. Originality/value: The study presents new insights into how different factors determine different lending types in Africa for the first time, to the best of the authors’ knowledge.enBanksLendingAfricaArticle