Downloads: 123 | Views: 329
Research Paper | Economics | Malaysia | Volume 5 Issue 8, August 2016 | Popularity: 7 / 10
The Empirical Effectsof Credit Risk on Profitability of Commercial Banks: Evidence from Nigeria
Olalere Oluwaseyi Ebenezer, Wan Ahmad Wan Omar
Abstract: The study investigates the effect of credit risk on profitability of commercial banks in Nigeria. Specifically, this research is to determine the significant effects of credit risk and its measure indicators, and the relationship between the indicators which influence the profitability of banks. A total 8 commercial banks (SIBs) was selected for the study, from the period 2011-2014. A panel data analysis is employed for the study to provide a robustness to the analytical model which passes all validity and reliability test to be a good fit model for hypotheses testing. Diagnostic test is utilized to test for data reliability and validity. The result of the analysis has revealed that there is a negative and significant relationship between non-performing loan ratio and the profitability, negative and insignificant relationship between debts to total assets ratio and profitability, and a positive and insignificant relationship between debts to equity ratio and profitability of banks during the period of study. In general, the results propose that banks needs to refocus on the effective management of their inherent risk which often affects their profitability and financial viability. Therefore, the study concludes that credit risk impact on profitability of commercial banks in Nigeria.
Keywords: Credit risk, profitability, commercial banks, systematically important banks SIBs and financial institutions
Edition: Volume 5 Issue 8, August 2016
Pages: 1645 - 1650
Make Sure to Disable the Pop-Up Blocker of Web Browser
Similar Articles
Downloads: 2 | Weekly Hits: ⮙1 | Monthly Hits: ⮙1
Analysis Study Research Paper, Economics, Cameroon, Volume 11 Issue 12, December 2022
Pages: 256 - 264Does Saving Mobilization Enhance Credit Granting? An Evidence from Cameroon Rural Areas
Herve Tchokomeni, Raissa Estelle Kapche, Sabine Aude Nanfak
Downloads: 68 | Weekly Hits: ⮙1 | Monthly Hits: ⮙1
Research Paper, Economics, China, Volume 9 Issue 11, November 2020
Pages: 1198 - 1202Research on Credit Risk Management of Auto Finance - A Case Study of H Auto Finance Company
Zhao Linzi, Wang Tao
Downloads: 115 | Weekly Hits: ⮙2 | Monthly Hits: ⮙2
Research Paper, Economics, Bangladesh, Volume 4 Issue 11, November 2015
Pages: 1926 - 1931School Banking: A New Idea of Banking Operation in Bangladesh
Ujjal Mondal, Md. Solaiman Hossain, Md. Abdul Mannan Khan
Downloads: 115
Research Paper, Economics, China, Volume 6 Issue 8, August 2017
Pages: 1774 - 1782Research of Financial Early Warning on Enterprises Listed on the New Third Board Based on KLR Model
Jianze Zhou
Downloads: 117
Research Paper, Economics, Zimbabwe, Volume 5 Issue 1, January 2016
Pages: 1798 - 1805Positive Aspects of Conservation Agriculture
Washington Muzari