Abstract:
The paper investigated the impact of banking financial crisis on performance of country economic sectors by assessing the impact of credit crunch caused by banking industry financial crisis to the country gross domestic products (GDP) growth from economic sectors such as agricultural, tourism, mining and industrial sectors. The variables tested by using the two-step dynamic panel data analysis indicate that the banking financial crises have negative impact on the performance of agricultural, mining and industrial economic sectors to country gross domestic products (GDP) growth. Hence the credit crunch in banking industry to agricultural, tourism, mining and industrial sectors affects the GDP negatively. The findings of this study are of great value in understanding the financial crisis in banking industry, their impacts in performance of the country economic sectors and how to make the banking industry financially stable. The finding from this study stimulate discussion and debate to academicians for further researches to unfold what is going on financial crisis in banking industry. Hence the study could help the policy makers to come out with substantive possible alternative policy interventions which might help them to address problems and challenges of financial crisis to baking industry and their impacts on country economic sectors.
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