Abstract
Understanding the causal factors of credit risk among commercial banking is imperative due to the high risk financial industry in developing economies face in their operations. Specifically, this paper examines the determinants of credit risk of commercial banks in Ghana from 2007-2014 using Robust Least Squares regression analysis. The results show a significantly positive relation between the bank credit risk and leverage. However, a negative relationship between the credit risk and management efficiency was found. With regard to the relationship between bank credit risk and profit, the results show a significant negative association. It is recommended that commercial banks should continue to diversify their lending activities to productive sectors to mitigate credit risk.
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