Determinants of nonperforming loans after recapitalization in the Nigerian banking industry: Does efficiency matter?

Bolarinwa, Segun Thompson; Akinyele, Olawale Folorunso; Vo, Xuan Vinh

doi:10.1002/mde.3323

Cited by 9 publications

(10 citation statements)

References 69 publications

(170 reference statements)

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“…Also, the degree of association between variables and the coefficient at the diagonal showed the degree of association between a variable and itself. Following Bolarinwa et al [ 27 ], the degree of association between variables is within the range of the acceptance region and the result are not unexpected since it conforms to theoretical foundation of Keynesian proponents of our a priori expectation. Owing to macropanel data adopted in the study, it becomes celestial to carry out pretest to avoid the misleading result.…”

Section: Resultssupporting

confidence: 82%

“…The frontier result shows that there is wide variation in the use of input factors among countries in Africa to achieve human development. However, the estimated gamma in Table 7 , following Bolarinwa et al [ 27 ] study shows that the total variation in human development is explained by technical inefficiency. Hence, this serves as a good proxy of government efficiency.…”

Section: Resultsmentioning

confidence: 97%

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Assessing the determinants of government spending efficiency in Africa

Adegboye

Akinyele

2022

Futur Bus J

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Government spending is one of the vital ways for the provision of public goods and services with a view of improving citizens' well-being. African countries have been identified by international bodies as naturally endowed with resources that serve as major financiers for many African governments yet, most countries in Africa are ranked low in human development. Though the nature of many governments is hinged on the quality of life, however, the reverse is the case for many African countries. Low development indicators as against huge African governments spending indicates low efficiency in spending. Hence, this study assesses the efficiency of government spending in Africa and examines the drivers of government spending efficiency. Adopts SFA to assess government spending efficiency while TFE model was used to examine the relationship between government spending efficiency and its drivers. Owing to macrodata adopted in the study, it accounts for the second-generation panel unit root and uses panel corrected standard error to correct for cross-sectional dependence among 40 African countries between 2000 and 2020. The frontier result revalidates government spending as an input factor to achieve growing human development in Africa. The result shows that the level of government spending efficiency depends on the size of the economy and other factors. Natural resources could be used to address the burgeon government spending efficiency when effectively utilized. The result shows that colonial legacy has a long-lasting impact on government spending efficiency. These results suggest the need for efficiency of government spending owing burgeon drivers available among African economies. We recommend the need to improve the efficiency of government spending in order to situate framework for Africa development. Effective resources utilization and a strong institutional framework are potential drivers of spending efficiency in African economies. The paper provides an empirical study on the relationship between natural resources, colonial legacy, and government spending efficiency through true fixed effect among African countries.

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Section: Resultssupporting

confidence: 82%

Section: Resultsmentioning

confidence: 97%

Assessing the determinants of government spending efficiency in Africa

Adegboye

Akinyele

2022

Futur Bus J

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“…The researchers pointed out that when GDP growth increased, Nepalese banks significantly, however, there were no significant changes in revenue increase [42]. Bolarinwa et al (2021) examined the macroeconomic determinants of NPLs empirically in the Nigerian banking sector from 1980-201, in assistance with the Augmented Dickey-Fuller unit root test the co-integration test of Engel and Granger and the error correction mechanism. The findings showed that economic variables not affect the banks' NPLs in Nigeria adequately.…”

Section: -2-empirical Findings On the Impact Of Macroeconomic Determi...mentioning

confidence: 99%

“…The findings showed that economic variables not affect the banks' NPLs in Nigeria adequately. This was due to the country's financial development, economic level, and the complex implementation of banking reformations that prevented them from achieving the desired goals [43]. SenGupta (2020) did a study using data from a panel of 103 countries with annual data from 2000-2017 and the Fixed Effects model.…”

Section: -2-empirical Findings On the Impact Of Macroeconomic Determi...mentioning

confidence: 99%

The Impact of Macroeconomic Factors on Non-performing Loans in the Western Balkans

Gashi

Tafa²,

Bajrami³

2022

Emerg Sci J

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This paper analyzes the relationship of macroeconomic factors to the level of non-performing loans (NPLs) using the econometric models GMM, the Fixed Effect model, and the Random Effect model. This study aims to identify macroeconomic factors at the level of non-performing loans in the Western Balkans, measure their impact on non-performing loans, and thus fill the gap that exists between macroeconomic factors (consisting of economic growth) and those with more impact on NPLs. The methodology used to carry out this research was desk research. We used World Bank data from 2000–2019, processed with STATA software. Results show that macroeconomic factors have an impact on non-performing loans. It also proves that even when interacting with other variables, the level of bad debt has not been completely eliminated, despite economic growth in many countries. Third, throughout the study period, fixed effects estimates show that variables are not significant in a static context. According to the findings, the annual rates of GDP growth, final government consumption, the real interest rate, gross domestic savings, and the unemployment rate all have a favorable impact on NPLs. This research contributes to a deeper understanding of the relationship between macroeconomic factors and non-performing loans in the Western Balkans. Based on this, to help reduce loan risk and bad debt by the proper criteria, we propose a series of policy implications. These implications aim to improve the efficiency of banks in particular and the banking system as a whole. Doi: 10.28991/ESJ-2022-06-05-08 Full Text: PDF

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“…Hendrawan dan Sulistyo, (2019) danMutarindwa et al (2021) yang juga menemukan bahwa biaya dana tidak signifikan terhadap pendapatan. SedangkanBolarinwa et al (2021) dan U-Din et al (2018) menemukan bahwa biaya dana signifikan terhadap pendapatan bank dan mampu meningkatkan pendapatan bank. 4.3.6.…”

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Efficiency Analysis of Conventional Banks and Islamic Banks Before and During Covid-19

Aryanti

Gunanto

2022

BAKI

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This study aims to analyze the efficiency level of conventionalcommercial banks and Islamic commercial banks in Indonesia fromthe first quarter of 2018 - the fourth quarter of 2020. This researchperiod is third year with the data used are 12 commercial banks anduses a quantitative approach. The method used in this research isStochastic Frontier Analysis (SFA). The results of this study are thatconventional commercial banks are more efficient than Islamiccommercial banks both before the COVID-19 pandemic and duringthe COVID-19 pandemic, more over there are differences in efficiencybetween conventional commercial banks and Islamic commercialbanks.

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Determinants of nonperforming loans after recapitalization in the Nigerian banking industry: Does efficiency matter?

Cited by 9 publications

References 69 publications

Assessing the determinants of government spending efficiency in Africa

Assessing the determinants of government spending efficiency in Africa

The Impact of Macroeconomic Factors on Non-performing Loans in the Western Balkans

Efficiency Analysis of Conventional Banks and Islamic Banks Before and During Covid-19

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