Credit Risk and Bank Performance in Nigeria
Journal Title: Saudi Journal of Economics and Finance - Year 2018, Vol 2, Issue 1
Abstract
Abstract:The study investigated the impact of credit risk on bank performance in Nigeria between 1990 and 2006. From the literature, non-performing loans have been used as proxy for credit risk. However, other variables such as total deposits, loan and advances and lending rate are used as other independent variables in the model while return on asset ROA is used as bank performance indicator. Cointegartion and error correction model is adopted and the results show that credit risk as proxy by non-performing loans has significant positive impact on bank performance in the short run but in the long run, the impacts turn negative. Also a strong linkage is found between loan and advances and credit risk as well as lending rate and credit risk. The study recommends that banks should guide against accumulation of nonperforming loans in order to reduce their vulnerability to credit risk. Keywords:Credit risk, non-performing loans, bank performance.
Authors and Affiliations
Aladesanmi KA
Keywords
Related Articles
- EP ID EP402290
- DOI -
- Views 121
- Downloads 0
Comparative Study of the Role of Tax Audit and Tax Investigations in Developed and Developing Countries (Emphasis on Nigeria and United Kingdom)
Abstract:This paper assessesthe comparative study of the role of tax audit and tax investigations in developed and developing countries (emphasis on Nigeria and United Kingdom). The two research questions that guided the...
The Study of Iran's Tourism after the Nuclear Consensus
Abstract:Over the past three decades, the tourism industry faces challenges in Iran, mostly due to international nuclear sanctions and there is no doubt that Iran has a negative image in the West and the negative propaga...
Handling Various Crises between Employers and Employees for Organisational Effectiveness
Abstract:The first step in getting ready to handle crisis at the workplace is to acknowledge that it can happen anywhere and at any time. To effectively deal with crises, companies should be able to react correctly when...
Analysis of Before and After the Formation of WasteBank on Elementary Student Performance in West Jakarta
Abstract:This study aims to analyze the differences before and after the formation of waste banks in students, while the long-term goal is reporting and business strategy of Waste Bank at school (including a simple mode...
The Effect of Working Group, Leadership Style, OrganizationalCharacteristics and Administrative Processes on the Job Performance of Furniture Company in Pasuruan, Indonesia
Abstract:Success in improving job performance in Pasuruan Furniture Company will be achieved if the company can create an understanding of the Working Group, Leadership Style, Organizational Characteristics and administr...