Effect of Interest Rate Determinants on the Aggregate Performance of Deposit Money Banks in Nigeria’s Banking Sector
| Autor: | Oluwarotimi Ayokunnu Owolabi, Ibukun Omoshola Fayemi |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2018 |
| Předmět: |
Deposit money bank performance
Interest rate determinants Total Assets Exchange rate monetary policy rate credit risk Multivariate ordinary least squares regression 050208 finance media_common.quotation_subject 05 social sciences Monetary policy Devaluation Context (language use) Monetary economics lcsh:Business World Development Indicators Interest rate lcsh:Social Sciences lcsh:H Exchange rate 0502 economics and business Ordinary least squares Economics 050207 economics lcsh:HF5001-6182 health care economics and organizations Credit risk media_common |
| Zdroj: | International Journal of Finance & Banking Studies, Vol 6, Iss 6, Pp 29-41 (2018) |
| ISSN: | 2147-4486 |
| Popis: | In this paper, the effect of selected interest rate determinants on the performance of Deposit Money Banks in Nigeria are investigated. In this context, the interest rate determinants are analyzed for their significant effect on the performance of the banks as measured by the Asset size, and related to that the determinants are further analyzed for significant difference between periods of high bank performance and low bank performance over the period of 1998 to 2015.. Data were sourced from the Central Bank of Nigeria Statistical bulletin and World Development Indicators. The findings of Multivariate ordinary least squares regression revealed that exchange rate has a positive and statistically significant effect on Aggregate Deposit Money Bank performance, Monetary policy rate and Credit Risk have a negative and statistically significant effect on Deposit Money Bank performance, while Inflation rate and savings deposit rate have a statistically insignificant effect on Aggregate Deposit Money Bank performance. Results of independent samples t-test revealed significant difference in means of interest rate determinants between high and low aggregate bank performance periods. The study recommends Naira devaluation and reduction of monetary policy rate amongst other recommendations to boost aggregate bank performance in Nigeria. |
| Databáze: | OpenAIRE |
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