Bank specifics and macroeconomic factors and non performing loans in Nigerian deposit money banks

Akinpelu, Y. Olanrewaju and Oduwole, F. Rachael (2021) Bank specifics and macroeconomic factors and non performing loans in Nigerian deposit money banks. In: ASUP Zone C Conference, Offa Poly, Offa. (Unpublished)

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Abstract

This study investigated bank specific and macro-economic factors as it affects non performing loans in the deposit money banks in Nigeria. Our sample consist eleven deposit money banks listed on Nigeria Stock Exchange and the data covered the period between 2015 and 2020. Panel data were employed, with non performing loans standing as the dependent variable and the independent variables consist of bank specific which were proxied by return on equity, capital asset ratio, cost efficiency, and bank size also; macro-economic variables were annual growth rate of GDP and annual inflation rate. Panel regression econometric model was employed to analyse the data. The result of the data analysis revealed that return on equity and cost efficiency ratios are negatively correlated and statistically significant to non performing loan while, capital asset ratio and bank size are positively related and statistically insignificant to non performing loan. The macroeconomic variables of gross domestic products, growth rate and annual inflation rate also have positive and statistically significant relationship with non performing loans. This study therefore concludes that banks with huge assets should create an expansion strategy for their assets portfolio.

Item Type:	Conference or Workshop Item (Paper)
Subjects:	H Social Sciences > H Social Sciences (General)
Divisions:	Faculty of Law, Arts and Social Sciences > School of Management
Depositing User:	Unnamed user with email [email protected]
Date Deposited:	10 Feb 2022 11:58
Last Modified:	10 Feb 2022 11:58
URI:	http://eprints.federalpolyilaro.edu.ng/id/eprint/1877

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