1,720,972 research outputs found
RELATIONSHIP BETWEEN BANK CREDITS AND MACROECONOMIC FACTORS IN NIGERIA
No full textCredit risk management is a very difficult and complex task in the financial industry due to unpredictable nature of the macroeconomic factors coupled with the various microeconomic variables which are peculiar to the banking industry or specific to a particular bank. The paper attempts to determine the association between bank credits and macroeconomic factors. The study seeks twofold aims: First the paper shows the relation between performing credits and macroeconomic variables, such as Inflation rate, monetary policy rate, inflation rate, interest rate and exchange rate. Second, the paper shows the relation between non-performing credits and macroeconomic variables, such as Inflation rate, monetary policy rate, inflation rate, interest rate and exchange rate. For achieve the aim, the study applied a simple correlation framework to assess the direction and extent and test the significance of the relationship between the considered macroeconomic variables and both performing credits and non-performing credits. The findings detail the determinants of nonperforming and performing credits of commercial banks in Nigeria shall be beneficial to different stakeholders in the banking sector (Deposit Money Banks and micro finance banks), monetary authority (Central Bank of Nigeria) and researchers. The findings shall also be used as definite inputs in developing regulatory standards regarding the lending policies of Deposit Money Banks in Nigeria. This study shall sensitize the deposit money bank management to give due emphasis to the management of these identified variables and provide them with further understanding of activities that can enhance their loan performance
RELATIONSHIP BETWEEN BANK CREDITS AND MACROECONOMIC FACTORS IN NIGERIA
Full text linkCredit risk management is a very difficult and complex task in the financial industry due to unpredictable nature of the macroeconomic factors coupled with the various microeconomic variables which are peculiar to the banking industry or specific to a particular bank. The paper attempts to determine the association between bank credits and macroeconomic factors. The study seeks twofold aims: First the paper shows the relation between performing credits and macroeconomic variables, such as Inflation rate, monetary policy rate, inflation rate, interest rate and exchange rate. Second, the paper shows the relation between non-performing credits and macroeconomic variables, such as Inflation rate, monetary policy rate, inflation rate, interest rate and exchange rate. For achieve the aim, the study applied a simple correlation framework to assess the direction and extent and test the significance of the relationship between the considered macroeconomic variables and both performing credits and non-performing credits. The findings detail the determinants of nonperforming and performing credits of commercial banks in Nigeria shall be beneficial to different stakeholders in the banking sector (Deposit Money Banks and micro finance banks), monetary authority (Central Bank of Nigeria) and researchers. The findings shall also be used as definite inputs in developing regulatory standards regarding the lending policies of Deposit Money Banks in Nigeria. This study shall sensitize the deposit money bank management to give due emphasis to the management of these identified variables and provide them with further understanding of activities that can enhance their loan performance
FINANCIAL INTERMEDIATION, AND THE GROWTH OF SMALL AND MEDIUM-SIZED ENTERPRISES: EMPIRICAL EVIDENCE FROM NIGERIA
Full text linkSmall and medium size enterprises (SMEs) have become part and parcel of economic growth and structural change as seen in the developing economies like Nigeria. They play important roles in employment and income generation, innovation, and reduction of poverty, thus being the engines of inclusive development. This paper will examine the dynamic nexus between the macroeconomic variables and the development of SMEs in Nigeria using annual data and cutting-edge econometric methodology. The analysis using fully modified least squares (FMOLS) estimation and robustness checks demonstrates that money supply, inflation, interest rates, and exchange rates have a high long-run impact on the growth of SMEs. Although money supply shows the most positive impact, credit availability also plays a moderating role where the effects of macroeconomic stability are concerned and are critical. The results also establish that there is cointegration between SME performance as well as macroeconomic fundamentals, which indicates the persistence of the relationships. The accuracy of the model is tested by the post-estimation diagnostics, which reflects that the model is reliable to draw policy insights. The paper concludes that the performance of the SME in Nigeria is not entirely based on macroeconomic policies but on the effectiveness of the financial intermediation and access to credit. The paper advises integration of monetary and structural policies to help in making the SMEs drivers of inclusive growth and sustainable developmen
Trade, Energy Efficiency, and Environmental Sustainability in Sub-Saharan Africa: Evaluating the Role of Economic Growth and Demographic Pressures in Shaping Ecological Outcomes
Full text linkThis study investigates the interlinkages between economic growth, trade openness, energy efficiency, and environmental sustainability in 48 Sub-Saharan African (SSA) countries over the period 2015–2023. Employing descriptive statistics, correlation analysis, and robust econometric models, including Ordinary Least Squares (OLS) and Robust Linear Models (RLM), the study examines the drivers of ecological pressures, measured through CO₂ emissions and renewable energy usage. Findings reveal that trade openness can alleviate environmental pressures by facilitating cleaner technologies, whereas GDP growth exhibits mixed effects: supporting Environmental Kuznets Curve (EKC) dynamics under OLS but intensifying environmental degradation when outliers are controlled for in RLM. Electricity intensity significantly influences environmental outcomes, highlighting the importance of energy efficiency, while population growth remains a persistent driver of ecological pressures. The results underscore the necessity for integrated policies promoting green trade, energy efficiency, and demographic considerations to achieve sustainable development in SSA
COMMERCIAL BANKS’ FACILITIES AND SMALL AND MEDIUM SCALE ENTERPRISES GROWTH IN KWARA STATE
Full text linkSmall and medium scale enterprises are engines of growth and catalysts for socio-economic development in both developing and developed countries. However, it has not performed admirably well because of inadequate banking facilities. This has affected the growth of small and medium scale enterprises in Kwara State. Hence, this study examined the effect of commercial banks on the growth of Small and Medium Scale Enterprises (SMEs) in Kwara state. Specifically, the study examined (i) the influence of commercial bank credit on SMEs growth in Kwara State and (ii) the impact of advisory services of commercial bank facilities on the growth of SMEs in Kwara State. The study employed primary data obtained through administered questionnaire to operators of small and medium scale enterprises. The study made use of both descriptive and inferential statistics such as frequencies, percentages and ordered logit and ordered probit regression to analyse the obtained data. At 0.05 level of significance the results of both the ordered logit and ordered probit regressions reveal that, commercial bank facilities such as loans, advisory services, collateral requirement, interest rate and banking inspection of SMEs are determinants of the growth of SMEs in Kwara State. The study therefore concluded that commercial banking facilities are significant determinants of the growth of SMEs in Kwara State. Hence, interest rate and other charges should be managed in a way that it will favor the growth of SMEs in Kwara state
Monetary Policy and Profitability of Deposit Money Banks in Nigeria
Full text linkPurpose
The significance of banking sectors for economic development, in every economy, cannot be overemphasized. This research investigates how monetary policy impacts the profitability of deposit-taking banks in Nigeria.
Methodology
The study employs an approach based on a static panel data estimator and the Dumitrescu and Hurlin panel causality tests to evaluate the defined objectives. The study\u27s data spanning 2012 to 2022, was obtained from the yearly reports of the chosen banks and Central Bank Statistical Bulletin.
Findings
The study revealed that monetary policy rates are a key factor influencing return on equity among banks in Nigeria at 1% level of significance. Furthermore, this research found the cash reserve ratio to be a significant factor influencing return on assets across banks in Nigeria at 5% level of significance. It was determined that monetary policy is a significant determinant of the profitability of banks in Nigeria.
Conclusions
This study extends evidence to examine how monetary policy impacts the profitability of deposit-taking banks in Nigeria. Amongst others, the research suggests that the central bank\u27s administration of monetary policy be flexible, allowing deposit-taking banks to perform their duties effectively to the public
FINANCIAL DEVELOPMENT, GOVERNMENT FUNDING AND INFRASTRUCTURAL DEVELOPMENT IN SOUTH AFRICA
Full text linkThe purpose of this paper is to identify the driving elements of the South African financial sector. While South Africa’s financial sector appears robust, there exists a dearth of empirical research investigating the determinants of its development. Thus, this work assesses how two critical factors: Infrastructure development, and government funding levels affect financial development (FD) in South Africa using annual data from 1990 to 2024. Preliminary findings show that the series are integrated, and they are cointegrated. Results from regression analysis suggest that the government funding exerts a positive and statistically significant influence on financial development across most indicators. Conversely, advanced infrastructure development, government funding and openness to trade are associated with a more developed financial sector. The implications of these findings are essential for policymakers and stakeholders in understanding the factors that drive financial development in South Africa. The study recommends that, among others, policymakers should prioritize investments in both physical and digital infrastructure, particularly in telecommunications
Comparative Evidence for Innovative Models for Infrastructure Financing in Ghana
Full text linkPurpose
This study explores the role of innovative financing models in overcoming infrastructure development challenges in developing countries. Infrastructure—encompassing transportation, energy, water, and telecommunications—is crucial for economic growth and social inclusion. However, many developing nations face financing gaps due to fiscal constraints, underdeveloped financial markets, and reliance on public funding.
Methodology
The study uses a quantitative approach to examine how Public-Private Partnerships (PPPs), infrastructure bonds, Sovereign Wealth Funds (SWFs), and blended finance can mobilize private sector investment, based on secondary data from government publications, international financial institutions, and academic journals. Secondary data was collected from 2010 to 2023. For data analysis, regression was used.
Findings
The findings reveal that while innovative financing models can significantly impact infrastructure development, their success depends on robust regulatory frameworks, political stability, and local capacity building. Public-private partnerships (PPPs) enhance project efficiency and accountability by distributing risks between the public and private sectors. Infrastructure bonds effectively mobilize long-term capital, while sovereign wealth funds (SWFs) provide a sustainable source of financing. Blended finance, which combines public and private capital, has proven particularly effective in sectors that are otherwise unattractive to private investors due to high risks.
Conclusions
The research identifies several challenges, including the need for improved regulatory and policy frameworks to attract private investment and ensure transparency. The study concludes that while innovative financing models are essential for bridging the infrastructure financing gap, their effectiveness depends on creating enabling environments that support private sector participation. Additionally, there is a pressing need for capacity building within the public sector to effectively manage complex financing structures
Credit Risk Management, Institutional Quality, and Financial Performance of Commercial Banks in Sub-Saharan Africa
Full text linkPurpose
This study examines the relationship between risk management and the financial performance of commercial banks in Sub-Saharan Africa, with particular emphasis on credit risk indicators and institutional quality.
Methodology
The study adopts an ex post facto research design. It uses secondary data from audited annual reports and financial statements of publicly listed commercial banks in Sub-Saharan Africa for the period 2018–2023. A two-step Generalized Method of Moments (GMM) estimator is employed to analyze the panel data and address potential endogeneity concerns.
Findings
The empirical findings reveal that the non-performing loans ratio exerts a statistically significant effect on bank financial performance. While the ratio of total loans and advances to total deposits shows a positive but statistically insignificant impact on profitability, changes in this ratio significantly influence bank profitability. Moreover, institutional quality is found to have a negative, statistically significant relationship with the return on equity (ROE) of commercial banks in Sub-Saharan Africa.
Conclusion
The results indicate that credit risk management and institutional quality play a critical role in shaping banks' financial performance in Sub-Saharan Africa. The study recommends that banks strengthen credit appraisal and risk monitoring mechanisms and ensure strict regulatory compliance to mitigate loan default risks. Additionally, policymakers are encouraged to enhance supervisory and regulatory frameworks to promote sustainable, resilient banking operations across the region
ASSET STRUCTURE, FINANCING DECISIONS, AND SCALE EFFECTS AS DETERMINANTS OF FIRM PERFORMANCE IN EMERGING MARKETS: INSIGHTS FROM NIGERIAN CONSUMER GOODS FIRMS
No full textIn developing nations like Nigeria, the output of businesses in the consumer products sector is crucial to industrialisation, job creation, and economic expansion. Using panel data on thirteen listed firms from 2000 to 2023, this study examines the effects of asset structure, external financing, and company size on return on assets (ROA) for consumer products companies in Nigeria. The findings indicate that while external financing has a negative impact on ROA, asset structure and business size have a beneficial impact. Leverage and sales growth sensitivity tests show that the results hold up well. The models' fit is justified by diagnostic testing after estimate, which reveals the lack of autocorrelation and heteroskedasticity. This work underscores the importance of prudent asset allocation, judicious financing choice, and size advantage in enhancing firm performance and provides practical guidance for managers, investors, and policymakers in developing countries
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