Nigeria's 2005 bank recapitalisation: an evaluation of effects and social consequences

Kanu, Clementina; Isu, Hamilton O.

doi:10.1504/ajaaf.2014.069842

Cited by 2 publications

(2 citation statements)

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“…In theory, financial markets are presumed to serve the real economy. However, in practice, Clementina and Isu (2014) discovered that NPLs stifle economic performance in Nigeria. Their study used time series data spanning from impact of NPLs on the industry's stability.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

The effects of non-performing loans on bank stability and economic performance in Zimbabwe

Katuka

Mudzingiri

Vengesai

2023

5002

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This study explores the impact of non-performing loans (NPLs) on the Zimbabwean banking industry’s stability and economic performance during the dollarization era. The panel vector autoregressive (PVAR) model was applied using annual data from 2009 to 2017. The findings indicated that short-run NPL shocks negatively impact the risk-adjusted return, while the impact on risk-adjusted capitalization is positive but dies off in the long run. The findings from the paper further show that NPLs have a strong negative and significant effect on loan growth and economic performance in the short run but remain muted in the long run. The study results also show a bi-directional causality between banking industry stability and NPLs. In summary, NPLs affect banking industry stability, loan growth and economic performance in Zimbabwe. A possible implication is the formulation of a sound regulatory framework that curbs the increase in NPLs, promotes stability within the banking industry, and improves economic performance. The practical implication is that banks must get it right the first time regarding bank lending policies. Thus, the study recommends that Zimbabwean banks proactively manage their exposure to non-performing loans by implementing rigorous credit risk assessment processes.

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Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

The effects of non-performing loans on bank stability and economic performance in Zimbabwe

Katuka

Mudzingiri

Vengesai

2023

5002

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“…Most importantly, the 2004 reform targeted volatile and inefficient banks and significantly reduced the number of established financial institutions by 60%. In hindsight, this policy has been described as a "huge success," and a case has been made for further consolidation (Umoren and Olokoyo, 2007;Adegbaju and Olokoyo, 2008;Clementina and Isu, 2014;Muritala et al, 2018).…”

Section: Background Of the Studymentioning

confidence: 99%

On the determinants, gains and challenges of electronic banking adoption in Nigeria

Aduba

2021

IJSE

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PurposeThe purpose of this study is to examine the gains, challenges and determinants of electronic banking adoption in Nigeria.Design/methodology/approachThis paper applied the generalized structural equation modelling (GSEM) to a large sample of respondents surveyed from five of the six geopolitical zones of Nigeria to model the determinants of electronic banking. In addition to many other advantages, GSEM can be used as a likelihood function. As a result, this paper proposes GSEM as the most appropriate tool for modelling the socioeconomic determinant of electronic banking adoption.FindingsAbout three-quarter of respondents adopted at least a form of electronic banking. However, only a tenth of users used e-banking for purchase of goods or services, implying low electronic payment adoption. The low adoption of electronic payment was due to poor digital security infrastructure which made users vulnerable to widespread electronic frauds. The findings also show that the adoption of e-banking platforms or services was characterized by users' socioeconomic status. For example, the odds of adopting internet/mobile banking decreases with older users but increase with higher educational attainment and income, whereas the odds of adopting e-banking platforms such as short message service (SMS) and point of sale (POS) banking increases with older users and informally employed users respectively.Practical implicationsFor a sustainable cashless economy and financial inclusion in Nigeria, policy consolidation that provides safe e-banking services is necessary. Also, e-banking service providers should deliver specific contents and services that match the physical and economic characteristics of users.Originality/valueGeneralized structural equation modelling (GSEM) is a robust likelihood function method that combines the power of structural equation modelling with the generalized linear model. The application of GSEM to predict the likelihood of adopting a banking technology or Service has not been explored in electronic banking literature. Also, as a fast-growing economy with a heterogeneous population, Nigeria presents an interesting context to study the determinants of electronic banking.

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Nigeria's 2005 bank recapitalisation: an evaluation of effects and social consequences

Cited by 2 publications

References 0 publications

The effects of non-performing loans on bank stability and economic performance in Zimbabwe

The effects of non-performing loans on bank stability and economic performance in Zimbabwe

On the determinants, gains and challenges of electronic banking adoption in Nigeria

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