Determinants of Banks� Profitability in Nigeria: Does Relative Market Power Matter?

Akinkunmi, Mustapha

doi:10.15640/jfbm.v5n1a4

Cited by 14 publications

(17 citation statements)

References 1 publication

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“…Commercial banks in Nigeria are key and contribute significantly to the economic growth of the country (Akinkunmi, 2017). As financial intermediaries, commercial banks provide variety of services to individuals, corporations and as well as government entities with the ultimate aim of achieving profits (Flamini, McDonald & Schumacher, 2009).…”

Section: Statement Of the Problemmentioning

confidence: 99%

“…Due to the varying regulatory frameworks and economic conditions of countries, the findings of these studies may not be directly applicable to the Nigerian context. Akinkunmi (2017) studied the variables determining the profitability of banks in the Nigerian context. The study focused on the period 2001 to 2015 while using ordinary least square and GMM.…”

Section: Empirical Reviewmentioning

confidence: 99%

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Price Levels, Exchange Rates, Interest Rates and Return on Equity of Commercial Banks in Nigeria

Akims¹,

Omagwa²,

Mungai³

2020

RJFA

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The fluctuation return on equity of commercial banks in Nigeria over the years has been a source of concern. This is largely due to the vital roles of commercial banks in the economic growth and development of the country. The study sought to assess the effect of price levels, exchange rates and interest rates on return on equity of commercial banks in Nigeria. The study applied annual panel data for the period 2010 to 2017. Correlation analysis indicates that price levels, exchange rates and interest rates had significant correlation with return on equity of commercial banks in Nigeria. Based on the panel regression analysis, the study found that price levels had insignificant effect on return on equity (β=0.0027, p=0.0660). The study findings indicate that exchange rates had insignificant effect on return on equity (β=-0.0002, p=0.0560). Interest rates had a significant effect on return on equity (β=0.0139, p=0.0110) of commercial banks in Nigeria. The study therefore recommends that price discrimination can be employed by banks so as to apply different interest rates on loans to different customers which can be guided by their credit history. Additionally, the Central Bank should put in place effective monitoring mechanism in line with floors and ceiling for lending rates so as to protect customers from exploitation by commercial banks. Further studies can be done on the effect of price levels and exchange rates on return on equity of commercial banks in Nigeria due to the unique results obtained in this study.

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Section: Statement Of the Problemmentioning

confidence: 99%

Section: Empirical Reviewmentioning

confidence: 99%

Price Levels, Exchange Rates, Interest Rates and Return on Equity of Commercial Banks in Nigeria

Akims¹,

Omagwa²,

Mungai³

2020

RJFA

View full text Add to dashboard Cite

show abstract

“…The macroeconomic factors proxy by GDP and inflation on the other hand have positive insignificant effect. Akinkunmi (2017) found that of all bank-specific measures (capital adequacy, liquidity risks, credit risks and efficiency ratio) employed, only efficiency ratio is a crucial factor that influence profitability of commercial banks in Nigeria. The macroeconomic variables -real GDP growth rate, inflation rate and market concentration however have no significant influence…”

Section: Literature Reviewmentioning

confidence: 99%

Financial Deepening And Financial Performance Of Deposit Money Banks In Nigeria

Yusuff¹,

Olaniran-Akinyele²

2019

ASSRJ

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This study examines the effect of financial deepening on financial performance of Nigerian Deposit Money Banks using time-series data spanning 1990Q1-2017Q4. The financial performance is expressed by return on assets (ROA) and return on equity (ROE) with total bank liability, private sector credit and market capitalization as measure of financial deepening. The technique of analysis deployed is autoregressive distributed lag (ARDL) to co integration. The findings show that the effect of total bank liability is positive and significant. Market capitalization and private sector credit on the other hand exert negative and significant effect. The study concludes that financial deepening affect financial performance of Deposit Money Banks in Nigeria. It then recommends effective loan recovery strategy to mitigate the negative influence of private sector credit due to non-performing loans.

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“…In Georgesan [14], electronic banking is defined as the provision of retail and small value banking products and services through electronic channels as well as large value electronic payments and other whole sale banking services delivered electronically. In Akinkumi [15] electronic banking enable financial institutions, customers and businesses to access accounts, transact business or obtain information on financial products and services through the internet. Customers access electronic banking services using an intelligent electronic device such as a personal computer (PC) personal digital assistant (PDA), Automated Teller Machine (ATM), among others.…”

Section: Literature Reviewmentioning

confidence: 99%

Effect of Electronic Banking on the Profitability of Deposit Money Banks in Nigeria

Jimoh¹

2019

JAEP

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The study examined the effect of electronic banking on the profitability of deposit money Banks in Nigeria. Banking industry is confronted by a new innovation imposed by technology transformation that has changed the way banks conduct their activities from traditional means to electronic means. Furthermore, this study investigates how the electronic banking channels through internet, mobile, POS and ATM have impacted on deposit money banks profitability. It is against this background that the study examined the effect of electronic banking on the profitability of deposit money Banks in Nigeria. The methodology of the study was quantitative in nature. Using time series data of 2006-2015, the study employed regression technique in the analysis of sourced data. Data were collected from secondary sources through annual reports of deposit money Banks in Nigeria. Electronic banking was measured using the total values of internet banking, mobile banking, POS and ATM while Profitability was measured using profit margin of deposit money banks in Nigeria. Profitability was regressed on internet banking, mobile banking, POS and ATM using ordinary least square regression technique. The study revealed that positive relationship exists between mobile banking and Profitability, and between ATM and Profitability. In addition, there is also a statistically significant relationship between POS and Profitability while there is no significant relationship between internet banking and Profitability. As such, E-banking has a positive effect on Profitability of deposit money banks in Nigeria. It is therefore, recommended that banks must offer numerous services through internet banking and effective transaction through the POS Terminals.

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Determinants of Banks� Profitability in Nigeria: Does Relative Market Power Matter?

Cited by 14 publications

References 1 publication

Price Levels, Exchange Rates, Interest Rates and Return on Equity of Commercial Banks in Nigeria

Price Levels, Exchange Rates, Interest Rates and Return on Equity of Commercial Banks in Nigeria

Financial Deepening And Financial Performance Of Deposit Money Banks In Nigeria

Effect of Electronic Banking on the Profitability of Deposit Money Banks in Nigeria

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