Risk Management, Risk Concentration and the Performance of Deposit Money Banks in Nigeria (Published)
This study investigated the effect of risk management and risk concentration on the performance of Deposit Money banks in Nigeria for the period 1997 to 2016. The study adopted credit risk, liquidity risk and capital adequacy risk as proxies for risk management/concentration, and return on assets as the measure for performance of Deposit Money banks. Secondary data was collected from the annual financial statements of listed banks and the Nigerian Stock Exchange fact book. The study employed multiple regression technique based on the E-views 7 software for analysis of data. The results of the analysis indicated that credit risk and liquidity risk had positive and significant effect on return on asset, while capital adequacy risk had negative and insignificant effect on return on asset. The study concluded that risk management/concentration affected the performance of banks in Nigeria. Based on the findings, the study recommended that the management of banks should establish sound lending policies, adequate credit administration procedure, and effective and efficient machinery to monitor the lending function in line with established guidelines. Also, the character and financial statement of the borrower must be properly scrutinized and a careful evaluation of the customer’s credit worthiness be carried out before extending loan facilities to potential borrowers.
Keywords: Credit, Liquidity, Performance, Returns on Assets, Risk Management, capital adequacy
Banking Sector Reforms and the Performance of Banking Business in Nigeria – An Econometric Analysis (Published)
The study examines the effect of financial reforms on banking sector efficiency in Nigeria from 1986- 2016. The objective of the study is to evaluate the extent to which exchange rate, (EXCH), interest rate (INT) and liquidity (LQT) have affected the efficiency of banking operations in Nigeria. The dependent variable in measuring banking sector efficiency is proxy by Nonperforming Loan (NPL). The OLS regression was adopted for test of the three hypotheses formulated. The findings indicate that financial reform targets have significantly affected banking sector efficiency in Nigeria in the long run. The study recommends that the regulatory and supervisory framework should be strengthened while interest rate policy should be made to stimulate savings through high real deposit rate and lending rate so as to promote financial deepening and thus banking efficiency.
Keywords: Banking Efficiency., Exchange Rate, Interest Rate, Liquidity, financial reforms
Determinants of Profitability in Commercial Banks Of Indonesia an Empirical Study (Published)
This study aims to determine the factors that affect the profitability of commercial banks in Indonesia. This research is a quantitative research using a sample six largest banks with total assets under ICMD. The banks included in the sample in this study is that Bank Mandiri (Persero) Tbk., Bank Rakyat Indonesia (Persero) Tbk., Bank Central Asia Tbk., Bank Negara Indonesia (Persero) Tbk., Bank Danamon Indonesia Tbk., and Bank Pan Indonesia Tbk. The research data in the form of panel data obtained from the annual financial statements of the bank. Techniques using multiple linear regression analysis. The results showed that the variables of liquidity of banks, non-performing loans and capital adequacy simultaneously affect the bank’s profitability. The partial effect of liquidity and non-performing loans significantly influence the profitability of banks. While the capital adequacy ratio of no significant impact on the profitability of commercial banks in Indonesia
Keywords: Liquidity, NPL, Profitability, capital adequacy