Banks Credit, Macroeconomic Dynamics and the Performance of Small and Medium Scale Enterprises in Nigeria: A Non-Linear ARDL Approach

Ayunku, Peter E.; Eweke, Gamaliel O.

doi:10.24018/ejbmr.2020.5.1.129

Cited by 4 publications

(3 citation statements)

References 3 publications

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“…This, therefore, indicate that Nigerian Banks turn over their assets into cash. Lastly, the loan-to-deposit ratio has a positive relationship with deposit money banks in Nigeria supporting the works of Kehinde&Solape (2021), Wuave, Henry & Paul (2020) and Ayunku (2017). However, the result is not significant, indicating a weak relationship.…”

Section: Discussion Of Resultssupporting

confidence: 65%

Evaluation of the Liquidity Management on Deposit Money Banks’ Performance in Nigeria

Esther¹,

Anayochukwu²,

Emmanuel³

et al. 2023

IJEBMR

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This study examined the effect of liquidity management on banks' performance in Nigeria for the period of ten (10) years (2012-2021). This is necessitated to respond to the fact that some Deposit Money Banks in Nigeria have some time ago been declared technically insolvent as a result of poor liquidity management, therefore the study is poised to find empirical evidence of the degree to which effective liquidity management affects the profitability of Deposit Money Banks, and how these banks can enhance their liquidity and profitability positions. Four proxies for liquidity management (liquidity ratio, cash ratio, efficiency ratio and loan-to-deposit ratio) were regressed against Tobin's q using Fixed Panel Least Square method in the model estimation. Other preliminary tests carried out include the descriptive statistics test, Levin, Lin and Chu (LLC) unit root and the Hausman Specification tests. The findings of the study indicate that liquidity management and efficiency ratio have a positive and significant relationship with the performance of Deposit Money Banks in Nigeria. On the other hand, the Cash Ratio has a negative and insignificant relationship with the performance of Deposit Money banks in Nigeria. Based on the above findings, the study concludes that there is a significant positive relationship between liquidity management and bank performance in Nigeria. Finally, the study recommends that banks should embrace measures that will make certain or ensure effective liquidity management rather than directing attention, time and resources to the profit maximization concept only. This, therefore, indicate that banks should invest the available excess cash in shortterm instruments of the money market.

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Section: Discussion Of Resultssupporting

confidence: 65%

Evaluation of the Liquidity Management on Deposit Money Banks’ Performance in Nigeria

Esther¹,

Anayochukwu²,

Emmanuel³

et al. 2023

IJEBMR

View full text Add to dashboard Cite

show abstract

“…The debate of whether bank liquidity affects bank financial performance is continuing as some previous research (Ayunku, 2017;Ifeacho & Ngalawa, 2014;Kosmidou et al, 2005, Quarshie & Djimatey, 2020 Theoretically, this is supported by a number of theories from earlier research. Yet, the empirical investigation into this relationship reveals a wide range of mixed results.…”

Section: The Relationship Between Liquidity and Banks' Financial Perf...mentioning

confidence: 91%

Liquidity Risk and Bank Financial Performance

Mahdy

2023

التجارة والتمويل

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In recent decades, businesses and academics in the field of financial management have developed an increasing interest in banks' liquidity. It has been recognized that banks' liquidity may impact banks' financial performance. Contemporary research shows that optimal liquidity reserves could enhance banks' financial performance across several countries. Though, the question of "how liquidity dynamics impact banks' financial performance" has not been thoroughly conducted and studied in Egypt. This research intends to investigate the impact of liquidity risk on Egyptian banks' performance. This research also examines how nonperforming loans and liquidity risk interact to affect the performance of Egyptian banks. The empirical data is drawn from a sample of 396 observations for the period 2013-2021 for Egyptian banks listed on the Egyptian Stock Exchange. Mixed-effects models were used as the statistical tools to analyze the collected data. The return on asset, return on equity, and banks' stock price are used as measures of banks' performance. According to the empirical findings, there is a significant inverse impact of liquidity risk on bank financial performance as measured by ROA. Furthermore, there is a negative and significant association between nonperforming loans and bank performance as indicated by ROE. Moreover, for the stock price model, it is concluded that the interaction effect of liquidity risk and nonperforming loans on bank performance is significantly negative. This demonstrates how procedures for managing liquidity risk are crucial in establishing banks' profitability and preventing banks' failure. Consequently, banks must practice prudent risk management strategies to protect the interests of investors.

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“…Furthermore, liquidity management ensures that there are sufficient cash balances for withdrawals and savings from customers, high assets quality and the ability to sustain all expenditures incurred (Olagunju, David & Samuel, 2011). The trigger of liquidity risk of banks, however, are misclassified of assets and liabilities in financial reporting and broaden loans and credit to high-risk borrowers (Ayunku, 2017). Studies have demonstrated that liquidity risk management plays a significant role in Islamic banking.…”

Section: Islamic Banks and Credit Riskmentioning

confidence: 99%

Shariah Governance Characteristics and Risk-taking of Local and Foreign Islamic Banks in Malaysia: A Conceptual Model

Rasli¹,

Kassim²

2020

JAFEE

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Purpose: In Malaysia, since the global financial crisis in 2007 and 2008, the low level of stability, excessive risk-taking and weak governance structure in the dual banking system has become essential for deliberation. The purpose of this research is to develop a conceptual model on the effect of Shariah governance characteristics on risk-taking between local and foreign of Islamic banks in Malaysia. Design/Methodology/Approach: Based on prior review of indicators and findings, this research proposes a conceptual model of effective Shariah governance characteristics and its effect on risk-taking of Islamic banks. A self-develop of Shariah board index (SB-Index) based on SB size, education background, membership with IFSB and attendance in meeting. Insolvency risk, credit risk and liquidity risk are the proxy used for risk-taking measurement. The theory of stewardship and resource dependency theory are used as examples of the theories of corporate governance to support the conceptual framework suggested. Findings: The Islamic banks in Malaysia are assumed to have effective Shariah governance and there will be low impact on risk-taking. Implications/Originality/Value: The regulators of Islamic banks must prepare for the need to improve the current standards for corporate governance in Malaysia.

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Banks Credit, Macroeconomic Dynamics and the Performance of Small and Medium Scale Enterprises in Nigeria: A Non-Linear ARDL Approach

Cited by 4 publications

References 3 publications

Evaluation of the Liquidity Management on Deposit Money Banks’ Performance in Nigeria

Evaluation of the Liquidity Management on Deposit Money Banks’ Performance in Nigeria

Liquidity Risk and Bank Financial Performance

Shariah Governance Characteristics and Risk-taking of Local and Foreign Islamic Banks in Malaysia: A Conceptual Model

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