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The purpose of this paper is to investigate the influence of macroeconomic cyclical indicators and country governance on bank non-performing loans in African countries.

Data was collected from the 53 African countries covering 2005–2021. The paper develops an empirical model to examine the impact of country governance in reducing macroeconomic cycle-induced adverse effects on bank credit risk. This research estimates Random Effects models and the General Method of Moment to examine the link between microeconomic and governance factors on bank non-performing loans. Stata version 15.1 was used to conduct panel regression analysis.

The findings of the study revealed that the generalized method of moments findings contributes valuable insights into the persistence of NPLs over time and the specific effects of variables on NPL levels. The study findings highlight that the debt-to-GDP ratio, unemployment, regulatory quality, government effectiveness and inflation have significant relationships with NPLs, shedding light on their specific contributions to credit risk dynamics.

The focus on a specific set of determinants for NPLs, which may not capture all the factors that influence NPL levels. Thus, the study did not consider the impact of macroeconomic shocks, such as natural disasters or global economic crises, which can have a significant impact on NPLs.

Policymakers should prioritize maintaining sustainable debt levels, promoting employment growth and controlling inflation rates to mitigate credit risk and reduce nonperforming loans. Also, enhancing regulatory quality and government effectiveness is crucial in ensuring financial stability and minimizing non-performing loans in Africa.

This paper provides a new possible solution to minimise bank non-performing loans risk by examining interactions of country governance regarding the macroeconomic cycle behaviour.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-11-2022-0729

THE summer is not a good time for writing editorials. In the first place it has been too warm, but more particularly, no matter how hot the topic at the time of writing, it will be cold as mutton before it eventually reaches its readers. Secondly our thoughts seem to have been devoted to anything except libraries: a little light reading perhaps, or a gentle discussion of next season's lecture programme? So now, not an editorial proper (or improper), but some editorial miscellany, beginning with the late but unregretted printing dispute. The LIBRARY WORLD has not been affected as much as some periodicals, and this issue makes its appearance only some three weeks later than planned. We have occasionally encountered comments which suggest that our journal is not anticipated each month with undue pleasure, and is quickly placed on the Chief Librarian's desk, from which honourable position its subsequent circulation is frequently delayed. Many libraries do not appear to have a professional journal circulation scheme, and this is a regrettable state of affairs. It is important that the younger members of the profession should be well informed about library affairs, and only the regular perusal of periodicals can achieve this. May we recommend that Chiefs institute and maintain a circulation programme in their libraries; we hear that it is much appreciated in those libraries which already do so.