Loan Performance for Commercial Banks’ Sustainability: A Systematic Review Following PRISMA Guidelines

Abstract

The loan performance of commercial banks serves as a critical barometer of financial stability and economic health. This paper conducts a systematic review of existing literature on loan performance, adhering to the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines. The objective is to synthesize findings from various studies to identify key determinants of loan performance, methodologies employed, and gaps in current research. The review focuses on studies published in top Scopus-indexed journals, ensuring the inclusion of high-quality, peer-reviewed research. Findings reveal that macroeconomic conditions, bank-specific characteristics, and regulatory environments significantly influence loan performance. Additionally, the review underscores the need for more robust methodologies and exploration of under-researched regions. This paper offers valuable insights for policymakers, bank managers, and researchers aiming to enhance loan performance and overall financial stability.