Effect of Liquidity Risk on the Profitability of Commercial Banks in Nigeria (Published)
This study examined how liquidity risk affects the profitability of commercial banks in Nigeria, using Return on Equity (ROE) as the measure of profitability. The study focused on three key liquidity indicators: Loan-to-Deposit Ratio (LDR), Cash Reserve Ratio (CRR), and Liquidity Coverage Ratio (LCR). Data were collected from financial statements of selected banks covering 2014 to 2023, and analysis was done using Panel Ordinary Least Squares (OLS) regression. The results showed that LDR had a significant positive effect on ROE (coefficient = 0.040697, p-value = 0.0003), meaning that banks that lend out more of their deposits tend to be more profitable. However, CRR and LCR had negative but insignificant effects on ROE, with coefficients of -0.053538 (p-value = 0.7526) and -0.018040 (p-value = 0.3136), suggesting that holding more reserves or liquid assets slightly reduces profitability but does not have a strong impact. The model explained 93% of the changes in ROE (R² = 0.936993, Adjusted R² = 0.926313), and the F-statistic (87.73978, p-value = 0.000000) confirmed that the overall model was statistically significant. The study recommends that banks optimize their LDR to increase profitability while maintaining enough liquidity to avoid financial risk. It also suggests that banks adopt better asset allocation strategies to reduce any negative effects of CRR and LCR.
Keywords: Cash Reserve Ratio, Commercial Banks, Loan to Deposit Ratio, Nigeria, Return on Equity, and liquidity coverage ratio
Employee Benefits and Employee Retention in Commercial Banks in Akwa Ibom State, Nigeria (Published)
This study investigated employee benefits and employee retention in commercial banks in Akwa Ibom State, Nigeria. The survey research design was adopted and this involved administration of copies of questionnaire on employees of case banks who served as respondents. The study’s population was 497 while the sample size was 384 determined using Cochran’s sample size determination formula. The sampling method employed in the study was random sampling. The questionnaire was used in data collection. Data obtained in the study were analyzed using simple regression method. The outcome of this research showed that employee benefits (Beta =0.184, t=2.921, p<0.05) has a significant influence on employee retention in commercial banks in Akwa Ibom State. Employee benefits can determine employee retention in commercial banks in Akwa Ibom State.The study makes contribution in the area of employing employee benefits in retaining the services of high performing and experienced employees in banks. The limitation of this study is that only one state was considered in the survey
Keywords: Commercial Banks, Employee Retention, Nigeria, employee benefits
Credit Expansion and Commercial Banks Soundness in Nigeria: An Application of Multi -Dimensional Analysis (Published)
This study examined the effects of credit expansion on commercial banks soundness in Nigeria. The objective was to ascertain the relationship between credit expansion and commercial banks soundness in Nigeria. Time series data was collected from Central Bank of Nigeria statistical bulletin and stock exchange factbook. Ordinary least square method was used as data analysis method. Model I had capital adequacy indicator was modeled as the function of bank credit to manufacturing sector, communication and transport, mining and quarrying, agricultural sector and credit to small and medium scale enterprises while model II modeled capital adequacy indicator as the function of credit to private sector, net domestic credits, medium term credits, short term credits and long term credits. From the findings, Model I found that the independent variables explained 77 percent variations on capital adequacy ratio. The beta coefficient found that all the independent variables have positive effects on bank capital adequacy except credit to manufacturing sector. Model II found that the independent variables can explain 81 percent variations on capital adequacy while the beta coefficient found that all the independent variables have positive effects except medium term credit. The study concludes that credit expansion significantly relates to commercial banks soundness in Nigeria. We therefore, recommended for a well-articulated credit policies that will strengthen commercial banks soundness in Nigeria.
Keywords: Commercial Banks, Credit Expansion, Multi-dimensional Analysis, Nigeria
Analysis of Correlation between Corporate Social Responsibility (CSR) and Business Performance Management (BPM) Of the Commercial Banks in Dong Nai Province (Published)
The research objective is to find the Pearson’s correlation coefficient. Correlation is a technique for investigating the relationship between two quantitative, continuous variables. In addition, the Pearson’s correlation coefficient (r) is a measure of the strength of the association between the two variables, especially; the correlation is significant between Corporate Social Responsibility (CSR) and Business Performance Management of the commercial banks in Dong Nai province. The study results showed that there were 200 staffs of commercial banks in Dong Nai province who interviewed and answered about 10 questions but 168 staffs processed. Data collected from December 2016 to March 2017 for commercial banks in Dong Nai province. There are the Cronbach’s Alpha test and the result of KMO analysis which used for correlation analysis. Staffs’ responses measured through an adapted questionnaire on a 5-point Likert scale. Hard copy and online questionnaire distributed among 1.000 staffs of commercial banks in Dong Nai province. In addition, the correlation is significant at the 0.05 level between Corporate Social Responsibility (CSR) and Business Performance Management of the commercial banks in Dong Nai province. The research results processed from SPSS 20.0 software.
Keywords: BPM and Dong Nai province and LHU, CSR, Commercial Banks