Performance Of Banks In Nigeria Research Articles

Effect of Electronic Fraud on the Financial Performance of Banks in Nigeria

The study investigated the effect of electronic fraud on the financial performance of banks in Nigeria. The specific objectives were to investigate the effect of electronic fraud through online web transactions, evaluate the effect of electronic fraud through automated teller machine, to determine the effect of fraud through point of sale machine, and to investigate the effect of fraud through mobile phone USSD transactions on the financial performance of selected deposit money banks in Nigeria. Panel Generalized method of moments (GMM) was used to analyze the panel series of the model. The Hausman test indicated the random effect model as most fit for the estimation. The major findings of the study revealed that fraud through the automated teller machine (AEF) has significant negative impact on the financial performance of the deposit money banks in Nigeria. The panel regression result also revealed that fraud through the mobile phone channel (MPEF), and fraud through the online banking channel (OBEF) had significant negative effect on the financial performance of the banks studied. The study concluded that electronic fraud has significant negative relationship with the performance of banks. The policy implication of these findings holds for both management of banks and the financial sector authorities to engineer strategic fraud mitigation technology to strengthen confidence in the financial system. Based on the findings, the study recommended that there is an urgent need for effective monitoring of bank fraud which will allow for the growth of Nigeria deposit banks performance. This is necessary especially this period that the world is going cashless and e payment instrument are used for cashless banking system. And failure to do that, will affect customer’s confidence in the industry. It is also recommended that Bank fraud shall be reduced through effective supervision and regulation of banks by the monetary authorities so that financial industry will contribute to the economy.

Basel 2 Accord and Deposit Money Bank Performance in Nigeria

Deposit Money Banks recapitalization has remained a major tool for stabilizing the Nigerian banking industry in the face of increasing level of risk in the banks. This study examines the Basel 2 accord and bank performance in Nigeria. The objectives were to find out the extent shareholders’ capital, total loans and advances, asset quality (non-performing loans/total loans) and capital safety (non-performing loans/shareholders’ capital) impacts on their return on assets. Exposit facto design was adopted. Data were collected through CBN and NDIC Statistical Bulletins. Analysis was carried outing using descriptive and multiple regression methods. Findings indicated that shareholders’ capital, Total loans and advances and capital safety (non-performing loans/shareholders’ capital) have no significant impact on deposit money banks’ return on assets while asset quality (non-performing loans/total loans and advances) has significant impact on return on assets. The study recommended that monetary and banking authorities should continue to enforce Basel Accord on banks as it ensures their stability even though it negates their financial performance

Asymmetric Analysis of Macroeconomic and Financial Determinants of Deposit Money Banks Performance in Nigeria

The performance of the banking industry is influenced by the economic, social, and political context in which it functions. The significant impact of the macroeconomic and financial environment on the performance of DMBs in Nigeria is apparent. The asymmetrical analysis of macroeconomic and financial factors influencing the performance of DMBs in Nigeria was investigated in this study. The researchers decided to use an ex-post-facto design. The data used in this study were obtained from the CBN annual statistics bulletin and the NBS. The NARDL methodology was used to conduct data analysis. The individual is referred to as Phillip-Peron. Unit root tests have shown a varied level of integration, although co-integration. The use of bounds testing methodology has provided evidence supporting the presence of a long-term association between the independent and dependent variables. The results indicate that the gross domestic product and all share index of the capital market have a favorable impact on DMBs in Nigeria. Conversely, inflation, monetary policy rate, and private sector credit have a negative influence on DMBs in Nigeria. The study recommended, among others, that the Federal Government should be committed to implementing economic policies aimed at accelerating rapid economic growth for the enhanced performance of DMBs in Nigeria, and the CBN should be more dynamic and strategic with the monetary policy rate (MPR) to ensure an efficient interest rate charged by DMBs.

THE EFFECT OF FORENSIC ACCOUNTING ON BANK PERFORMANCE

This study investigated the effects of forensic accounting on bank performance in Nigeria using four (4) measures of forensic accounting (money laundering fraud control, point of sales, money transfer fraud and automated teller machine fraud control) and one (1) performance measure (return on asset). Data were obtained from the annual reports and accounts of the banks and Central Bank of Nigeria Statistical Bulletin from 2012-2020. Data obtained were analyzed using descriptive statistics (mean, standard deviation, skewness, kurtosis and correlation) and inferential statistics (variance inflation factor and ordinary least square). Findings of the study showed that all the forensic accounting measures of the study (money laundering fraud, point of sales, money transfer fraud and automated teller machine fraud controls) negatively and significantly affected performance of banks in Nigeria. Based on the findings, it was recommended among others that bank management should employ forensic accounting by amending the existing statutes in such a way that forensic accountants are included in the management process. Through this, forensic accountants will have more tools to effectively deal with challenges in fraud control. Also, the negative relationship between forensic accounting and performance of banks suggests that it has not been effectively used by management; thus, there is need for Nigerian banks to further enhance and employ forensic accounting support services, fraud investigation and forensic audit by ensuring that they achieve what they intend to do for banks
 Keywords: Forensic Accounting, Bank, Performance, Nigeria.

Impact of Electronic Banking on Deposit Money Banks Performance in Nigeria: Evidence from Dynamic Ordinary Least Squares Technique

The importance of electronic banking and its performance can never be overemphasized and technology industries made it effective and efficient in carrying out transactions on a daily basis. On this note, the paper investigated the empirical effect of electronic banking on bank performance in Nigeria from 2009Q1 to 2023Q1. The paper adopted Dynamic Ordinary Least Squares (DOLS) technique and the variables include the dependent variable, return on assets (ROA) while the independent variables include point of sales (POS) and cheque (CHQS). The coefficient of the total number of point of sales transactions (POS) coefficient is directly related to electronic banking on bank performance long-run in Nigeria. The result reveals that there is a statistical and positive effect of electronic banking on bank performance on the return of assets (ROA) in Nigeria. On the other hand, the coefficient of total transactions carried out on the cheques (CHQS) is positively related to electronic banking on bank performance captured by return on assets (ROA). It means a rise in total transactions carried out on the cheques exerts a positive impact on e-banking on bank performance in Nigeria. The paper recommended that government or financial institutions should deploy the right technology that would model the digital global market and banking sector and that banks should encourage the consumers‟ of electronic ways of banking. On the aspect of cheques, therefore, there is a need to develop effective strategies for customers to shift from traditional to electronic banking and discourage the use of cheques.

Macro-economic Variables and Bank Performance in Nigeria: Fourth Republic Perspective

Purpose: The vagaries of the macroeconomic variables make the business environment unpredictable, and this often portends mammoth implications for various businesses, primarily critical businesses such as banking, which the successive governments within the Fourth Republic have strived to protect jealously. Therefore, this study assessed the impact of macroeconomic factors on the performance of Nigerian banks from 1999 to 2021.Methodology:Data for the study period came from the World Bank reports and the CBN and SEC Statistical Bulletins. An ARDL (Autoregressive Distributed Lag) model was employed to evaluate the data.Findings: Lending interest rates had a negative and statistically insignificant impact on the performance of Nigerian banks with a coefficient of -0.0422 (p-value = 0.3860 & gt; 0.05), in contrast to the unemployment rate, which had a negative but statistically significant impact with a coefficient of -0.0534 (p-value = 0.0012 & gt; 0.05).Implication:Lending interest rate and unemployment rate impeded banks' performance, gross domestic savings, GDP per capita income, and exchange rate facilitated banks' performance in Nigeria.

RISK MANAGEMENT AND PERFORMANCE OF THE NIGERIAN BANKING INDUSTRY

The study examines the relationship between risk management and the performance of the Nigerian banking industry. The panel data analysis technique based on the fixed effects estimation was employed to analyze the Nigerian banking industry performance. Risk management related factors such as credit risk, liquidity risk, market risk, interest rate risk and operational risk. A total of 18 most active deposit money banks listed on the Nigerian Stock Market for a period of 22 years (2000 to 2021) were used in the analysis. The empirical findings revealed that credit risk and operational risk variables were negative and do not have any significant relationship with the performance of the Nigerian banking industry while liquidity risk and market risk have significant positive effect on bank performance, interest rate risk has significant negative relationship with banks performance in Nigeria within the period of study. The study recommends among others that, banks’ management should have proper understanding of how credit policy affects the operations of their banks to ensure judicious utilization of deposits and maximize profit. Improper credit risk management reduces bank profitability, affects the quality of its assets and increases loan losses and non-performing loan which may eventually lead to financial distress.

Corporate Outsourcing and Organizational Performance in Nigerian Investment Banks

Purpose: This study aims to ascertain the relationship between corporate outsourcing and investment bank performance in Nigeria. Research Methodology: The study adopted a survey research design because it is suitable and ideal for assessing how effective outsourcing strategy affects the corporate performance of investment banks in Nigeria. The population of the study was 280 staff from three investment banks in Nigeria. Using a purposive sampling technique, a sample size of 258 senior, medium, and junior staff of the sampled investment banks were selected as respondents. Multiple regression was used to test the hypotheses that were developed at a significance level of 0.05 percent. Results: The study showed that outsourcing has developed into a practical strategy and instrument for corporate organizations, particularly for Nigerian investment banks that are constantly looking to improve their firms' performance in the financial industry. To lower operating expenses and boost operational effectiveness in Nigeria’s investment banking sector, the management of Nigeria's investment banks should strategically allocate their resources and work with a partner. Limitations: The result of this study may not apply to other excluded categories because this study is limited to investment banks in Nigeria as of December 2022. It is expected that further studies should cover all the banks as well as insurance firms in Nigeria. Contribution: To leverage the services of other organizations and professionals outside of their core competencies for operational effectiveness and efficiency, corporate organizations in Nigeria, especially those in the financial sector, should incorporate outsourcing strategy into their corporate culture. Implications: Corporate outsourcing is pivotal to organizational performance if well applied.

Effect of Fraud on Commercial Banks’ Performance in Nigeria

The study examined the effect of fraud on bank performance in Nigeria. The specific objectives were to: investigate the relationship between the number of frauds and bank performance in Nigeria, assess the relationship between the amounts lost to frauds and bank performance in Nigeria and to examine the relationship between the numbers of staff involved in fraud loses and bank performance in Nigeria. The study utilizes secondary sources of data extracted from the Nigerian Deposit Insurance Corporation (NDIC) Annual Report and CBN Statistical Bulletin from 1994 to 2020. Statistical methods such as descriptive analysis, Pearson correlation and OLS regression techniques were employed in the evaluation of the data. The result of the hypotheses revealed number of fraud cases as well as the total amount lost to fraud had a positive and significant impact on bank performance while the total number of staff involved in fraud was found to be negative and significant on deposit money banks performance in Nigeria. The study recommended that CBN and NDIC should encourage DMBs to always report cases of fraud, this can be done through creation of a fraud “hotline” where the public can call to complain or report fraud cases with appropriate rewards that will incite more compliance. Management of banks should train and retrain staff of Nigerian banks in fraud prevention and control. Such training should include a comprehensive review of legal and regulatory guidelines that will limit fraud activities.

Executive Compensation and Bank Performance in Nigeria

This study provides empirical evidence on executive compensation and bank performance. The objective of this study is to examine the influence director compensation, CEO compensation, chairman’s compensation and CEO ownership on bank performance. This study employed a quantitative and longitudinal research design in which secondary data were collected from the quoted banks in the Nigeria Stock Exchange from 2012 to 2016. Multiple regression technique, descriptive statistic, Pearson correlation matrix, Variance Inflation Factor for multicollinearity and Breusch-Pagan-Godfrey Heteroskedasticity test for heteroskedasticity in the regression results the data analysis are performed using EViews 8.0 econometric software. The empirical results show that director compensation has a negative and insignificant influence on bank performance measured by return on equity, CEO compensation has a positive and a significant influence on bank performance, chairman compensation has a negative and a significant influence on bank performance, CEO ownership has a positive and insignificant influence on bank performance while the control variable, firm size has positive and insignificant influence on bank performance. The study recommended that quoted companies in Nigeria should be more concern of CEO ownership and compensation as it had a negative impact on the performance of the organization. The study recommends that quoted banks in Nigeria should be more concern of chairman’s compensation due to it negative influence on bank performance. The study also suggests that remuneration drive CEO motivation to enhance performance.

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

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.

Corporate governance practices and firm performance: The moderating effect of female directors

Improved corporate governance practices of banks are viewed as a key mechanism for better performance of banks. Despite the numerous diversification efforts of the Nigerian bank regulators, bank performance remains poor. The study determines the moderating effects of female boards of directors on the relationship between board characteristics and the performance of banks in Nigeria. The quantitative explanatory design utilised a cross-sectional survey sample of 121 respondents from 24 state- and privately-owned banks. Regression analyses were used to examine the effects among the variables. The results showed that board size and board committees (audit, remuneration, and nomination) are positively and significantly related to bank performance. On the contrary, board independence is negatively and significantly related to bank performance. The result revealed that female representation does not have a moderating effect on the relationship between each board size, board independence, and bank performance. Female representation negatively and significantly moderated the relationship between each audit and remuneration committee and bank performance. However, female representation positively and significantly moderated the relationship between nomination committees and bank performance. Our findings shed light on the role of the mandatory policy of including women on banks’ boards and the female board members’ moderating role between the nomination, audit and remuneration committees on one hand and the bank performance on the other

Investment Bank, Financial Performance, Economic growth and Development: An Empirical Analysis of Investment Banking Activities and Financial Market in an emerging Economy: A case study of Nigeria

The investment bank's performance was researched and critically analysed, and how such performance might contribute to economic growth notably in Nigeria. This study is unique in the Nigerian financial market since it empirically studied connected characteristics that potentially impact investment bank performance in Nigeria. This study spanned the years 1996 through 2022. The period was marked by a credit boom, a financial recession, a rebound, and strong economic expansion. Because of the nature of the study topics, a quantitative approach was taken. The study discovered that bank-specific characteristics, industry-specific factors, macroeconomic drivers, and institutional factors are relevant in evaluating the performance of Nigerian investment banks. That is, a critical examination of the performance of Nigerian investment banks is centred on bank-specific characteristics. This suggests that the capacity of investment banks to fulfil their essential functions is determined by internal factors such as capital, credit risk, operating expenditures, and size. Additionally, the industry strength demonstrated that the financial market's depth had an influence on investment banks. The significance of competitiveness was underlined. Macroeconomic factors such as GDP growth, interest rates, inflation rates, and oil prices shown that a strong macroeconomic environment is required for vibrant investment banks. Lastly, institutional variables such as a developed insurance industry, political stability, the rule of law, and effective government policies can all have an impact on the success of Nigerian investment banks. The research recommended that, in order to significantly improve the performance of investment banks in Nigeria, the following strategies be pursued aggressively: cost reduction strategy, cultural transformation, adopting a customer-centric approach to business, technological development, financial depth development, and development of a sustainable investment bank framework. This study believes that if the recommendations are adopted, investment banks' profits would improve, allowing them to execute their core functions and contribute to the growth of the economy, particularly in a rising economy like Nigeria. &nbsp

Electronic Banking and Bank Performance: Evidence from Nigeria

The innovative advancement of the financial system has made deposit money banks all over the globe adopt a technological mode of meeting the customer’s needs, so it has to improve the level of deposits and withdrawals. Hence due to this innovation, this study examines the impact of electronic banking on bank performance in Nigeria. The secondary data collected from the central bank of Nigeria Statistical bulletin from 2009-2017 were subjected to Johansen Co-integration and Vector Error Correction Method (VECM). The findings revealed through the Johansen Co-integration results depict a long-run relationship between the variables. The Fully Modified Least Square depicts that Mobilepay and Webpay have a significant negative effect on NIM (Net Interest margin) while POS (Point of Sale) has a significant positive effect on NIM (Net Interest Margin). The bank should make sure POS (Point of Sale) and Website/Internet transactions are made available to rural and urban areas, so has to encourage different classes of account holders to transfer and receive cash quickly.How to Cite:Raymond, A., Ebenezer, A. M., Kehinde, O. I., & Lateef, Y. A., (2022). Electronic Banking and Bank Performance: Evidence form Nigeria. Signifikan: Jurnal Ilmu Ekonomi, 11(2), 371-382. https://doi.org/10.15408/sjie.v11i2.15540.JEL Classification: G21, G32, G51

Effect of Corporate Social Responsibility on Financial Performance in Nigeria

The study examined corporate social responsibility on financial performance of banks in Nigeria by using earning per share, gross earning and profit after tax as measures of financial performance of banks in Nigeria. The study design was ex-post-facto. Pearson correlation and simple regression analysis were the major statistical tools used for the analysis through the application of SPSS version 20.0 and E-View 8.0 software packages. Correlation results showed that whereas the relationship between corporate social responsibility and earning per share was positive but insignificant, it showed strong, positive and significant relationships with gross earning and profit after tax respectively. Similarly, corporate social responsibility expenditure was found to have insignificant effect on earnings per share, it has significant effect on gross earning and profit after tax of the banks in Nigeria. The study recommends among others that corporate organizations should endeavor to give more to the society in CSR and leverage it to enhance the financial performance of their businesses in the country.

Asset Quality and Deposit Money Bank Performance in Nigeria

The banking industry globally plays a vital role in social and economic activities development of any economy through loan extension to investors. The banking industry in Nigeria has been plagued with problems of high level of non-performing loan, untraceable insider loans and challenges of poor assets quality management, thus reduced aggregate financial performance in terms of return on equity, profit after tax, return on assets and market value. The study therefore examines the effect of assets quality on Deposit Money Banks Performance in Nigeria. The research design employed was ex-post facto research design. The study population comprises of the 16 deposit money bank quoted in the Nigerian Stock Exchange over a period of 10 years ranging from 2009 to 2018. A sample size of 10 leading quoted deposit money banks was selected and purposive sampling technique was employed. The findings revealed that assets quality measures significantly effect on assets of selected quoted deposit money banks in Nigeria (Adjusted R2 = 0.28, F-statistics = 6.56 .:p = 0.00<0.05The study concluded that assets quality measures significantly affect performance components in terms of return on assets deposit money banks in Nigeria. Therefore the study recommended that deposit money banks in Nigeria should embraced credit risk identification, measurement, monitoring and controlling, and customers credit screening in order to achieve sound assets quality thus reduced the rate of non-performing loans and increase aggregate financial performance measures.

LIQUIDITY MANAGEMENT AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

The study investigates the effect of liquidity management on financial performance of listed deposit money banks in Nigeria. Liquidity management was measured and proxy with capital adequacy ratio, liquidity ratio and loan to deposit ratio, however financial performance was proxy with Tobin’s Q. Secondary data source was utilized and it was extracted via the audited published annual reports and accounts of the banks selected covering the period from 2010-2019. Panel multiple regression technique was adopted as the technique of data analysis, while Stata 13 was used as the tool for analysis of data. Robustness tests which include heteroscedasticity, multicollinearity and normality test of standard error were conducted. Findings revealed that capital adequacy ratio have positive and significant effect on financial performance of listed deposit money banks in Nigeria. Liquidity ratio has significant but negative effect on financial performance of banks in Nigeria which connotes that high level of liquidity ratio will lead to low level of performance strategically for banks. Loan to deposit ratio has positive but insignificant effect on financial performance. It is therefore recommended that management of board should pursue increased capital with the Central Bank of Nigeria and the CBN should also make sure that banks met and continually meet the requirements in respect of capital adequacy before giving the license to operate. The management of the banks should ensure that most idle cash are investment into short term portfolios to attract higher returns which will eventually increase the value of the banks.

Impact of Security Challenges on Bank Performance in Nigeria

Economic stability is sustainable in a friendly and secure environment where lives and properties are guaranteed. Banks as providers of loans and advances to the productive sectors of the economy require a conducive, non- hostile economic and business environment for optimisation and maximisation of corporate objectives even so as the banking industry is a highly sensitive subsector. However, the challenge of insecurity across the country has posed a tremendous danger to the operations and business models of the banking institutions. This paper examines the impact of security challenges on the performance of banks in Nigeria, as business environment plays a significant role in the sustainability, profitability and growth of banking business globally. Bank performance is dependent on the level of security in the operating environment. The study evaluates the relationship between insecurity and bank performance. Federal Government security expenditures is taken as a proxy for security challenges and regressed with metrics of bank performance such as total assets, loans and advances, liquidity ratio and loans to deposit ratio by using partial least squares structural equation modelling (PLS- SEM). The study covers a period from 2000 to 2020 and the data were obtained the Central Bank of Nigeria Statistical Bulletin, National Bureau of Statistics, Nigeria Deposit Insurance Corporation and the Federal Budget office. The result reveals that insecurity has adverse impact on bank performance like other social and economic activities. The issue of insecurity demands holistic solution for the sustainability and growth of the banking industry and the economy as a whole.

Effects of Digital Banking on The Performance of Commercial Banks in Nigeria 2010 -2019

In this study, the effect of digital banking on the performance of Commercial Banks was examined from 2010 to 2019. The study applied the Autoregressive Distributive Lag (ARDL) framework to examine the relationship between point of sales machine (POSG), Banking Transactions made through unstructured supplementary service data (USSDG), Web banking (WEBG) and Return on Assets (ROA) of commercial banks in Nigeria. The data were obtained from the statistical bulletins of the Central Bank of Nigeria (CBN) and annual reports of Nigeria Deposit Insurance Corporation (NDIC). The result of the analysis revealed that digital banking has positive and insignificant effect on the performance of commercial banks in Nigeria. . In the light of this findings, the study recommends the need for relatively stable network: In other to reduce number of failed transactions, banks are hereby encouraged to liaise with network providers and their engineers to develop a standardized network platform exclusively for each of the digital banking channels. Also there is need for digital banking education to bank customers on the benefits of digital banking. Equally there is need for all banks to have 24 hours working cyber security department in order to ensure that the channels are not hijacked by cyber criminals.

Credit risk and performance of banks in Nigeria

Credit risk and performance of banks in Nigeria