Risk management, diversification, and profitability of commercial banks in Central Africa.

This article examines the impact of bank risks and diversification on the profitability of commercial banks in Central Africa. The results indicate that the credit risk and liquidity risk have a negative impact on the profitability of these banks. Moreover, credit risk is reduced more through credit rationing than through an in‐depth examination of the borrowers' profile. Lastly, banks use diversification to compensate for revenues lost because of credit rationing. [ABSTRACT FROM AUTHOR]