The Intervening Effect of Global Financial Condition on the Determinants of Bank Performance: Evidence from Nigeria

Alabede, James O.

doi:10.5430/afr.v1n2p161

Cited by 10 publications

(14 citation statements)

References 13 publications

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“…Hashim, 2014). In Nigeria, the banking sector is an essential component of the Nigerian financial system; the banking sector accounts for about 90 percent of the total assets in the Nigerian financial system and about 60 percent of market capitalization in the Nigerian Stock Exchange (Alabede, 2012).…”

Section: Introductionmentioning

confidence: 99%

Investigating Finance-Growth Nexus: Further Evidence from Nigeria

Oyebowale¹,

Karley²

2018

IJEF

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This study investigates the influence of financial sector development on economic growth in Nigeria during the period 1982 to 2015. As such, the study obtained annual secondary data from the Central Bank of Nigeria statistical bulletins and World Bank financial database. The empirical model for this study examines growth in savings, growth in exchange rate, growth in government expenditure, growth in stock market capitalization, growth in credit to private sector, growth in gross capital formation, growth in trade openness and growth in broad money on economic growth in Nigeria. The multiple regression output reveals that growth in government expenditure and growth in gross capital formation are statistically significant on economic growth in Nigeria at 1% and 10% respectively under the period under investigation while other regressors in the model prove to be statistically insignificant. VAR test shows that there is considerable short-run causality running from lags of regressors to economic growth in Nigeria except for lag 1 of growth in exchange rate and lag 2 of growth in credit to private sector. The granger causality test reveals the existence of bi-directional causality between financial sector development and economic growth in Nigeria during the period under investigation. Hence, this study supports the ‘feedback hypothesis’ view on finance-growth. Based on these empirical results, this study recommends effective channeling of funds to the private sector and autonomy of the Central Bank of Nigeria in the use of monetary policy tools.

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Section: Introductionmentioning

confidence: 99%

Investigating Finance-Growth Nexus: Further Evidence from Nigeria

Oyebowale¹,

Karley²

2018

IJEF

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“…In Similar vein, CBN established the Assets Management Corporation of Nigeria (AMCON) aimed at reducing the problem of liquidity in the banking sector. Subsequently, the number of deposit money banks (DMBs) operating in Nigeria reduced to 20 with 5,810 branches at the end of the fiscal year 2011 (Alabede, 2012).…”

Section: Bank Performancementioning

confidence: 99%

Retail Banking and Bank Performance: Evidence from Nigeria

Biiranee¹

2021

IJEF

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This is a correlational research design that intended to examine the nexus between retail banking and financial performance of banks in Nigeria. The Panel Least Squares regression results aided the study in ascertaining the coefficient, standard error, t-statistic and probability. The tabulated ratios were exported to EViews 9.0 to run the panel regression. Data were collected and analyzed based on the annual reports available on the website of 16 banks listed on the Nigerian Stock Exchange as at 31st December 2018 out of the approved 22 commercial banks in Nigeria. The result of findings revealed that Size and Competition significantly impacted on bank performance with a probability of 0.0071 and 0.0178 respectively which is less than 5% degree of significance; and Loans and deposits relationships were all not significantly impacting on bank performance, as the probabilities for all variables were more than the acceptable 5% degree of significance. Based on the outcome of findings the following conclusions were drawn that; Size which is the natural logarithm of Total Assets and Competition which is the natural logarithm of Total Deposit is significantly responsible for bank performance in Nigeria. The study therefore recommended that professional bankers should continually focus on growth and expansion drive that will increase the size of the bank and enable the banks to compete nationally and internationally in order to drive profitability. Banks that want to experience optimum performance should focus more on policies that will attract huge retail deposit to the bank being that the savings component of the total deposit banks in Nigeria comes at a ridiculously cheap rate to the banks and banks loaned out these deposits at high margin.

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“…Das ( 2013) studied real GDP growth rate and inflation as supplementary variables in the analysis. Alabede (2012) concluded that in the presence of the effect of global financial condition, only assets quality and market concentrations are significant determinants of the Nigerian banks' performance. The study suggested reducing nonperforming assets and introducing a policy to encourage fair competition among the banks.…”

Section: Review Of Literaturementioning

confidence: 99%

“…In the analysis ROA was used as indicator of bank performance. The same variable was used by Alabede (2012) in his study for analyzing the effect of global financial conditions on the bank performance in Nigeria.…”

Section: Gdp (Growth Rate)mentioning

confidence: 99%

Untitled

2019

IJEFI

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A sound financial system has vital influence on the economic development of a country. Banking system constitutes an important component of the financial system of the country; therefore, the economic importance of banks may not be underestimated. Performance evaluation of the banking system is an effective measure and indicator to check the strength of financial system of an economy. The overall objective of the present study was to explore the influence of bank specific factors and macroeconomic factors on the performance of private sector banks in India. To examine the effect of external or macroeconomic factors, growth rate of gross domestic product [GDP] and average annual inflation rate were considered. For the analysis, 7 years panel data of 20 private sector banks was analyzed using linear multiple regression model. The financial performance of banks was expressed by return on assets (ROA) variable. Using multiple regression technique the analysis of sample data for the time period 2008-2014 revealed that except capital adequacy ratio (CAR) variable all other bank specific variables (asset quality, management efficiency, earning quality and liquidity) and macroeconomic variable GDP had significantly influenced the financial performance of sample banks in India and inflation was statistically insignificant in case of its effect on ROA. The implications of the study revealed that in spite of optimum CAR maintained by private sector banks, the other variables related with management and governance of banks had significant effect on the financial performance of the banks.

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The Intervening Effect of Global Financial Condition on the Determinants of Bank Performance: Evidence from Nigeria

Cited by 10 publications

References 13 publications

Investigating Finance-Growth Nexus: Further Evidence from Nigeria

Investigating Finance-Growth Nexus: Further Evidence from Nigeria

Retail Banking and Bank Performance: Evidence from Nigeria

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