Determinants of Commercial Banks¡¯ Lending Behavior in Nigeria
By F. Olokoyo. 2011
172 citations recorded by the source corpus.
This study investigated the determinants of commercial banks’ lending behaviour in the Nigerian context. The study aimed to test and confirm the effectiveness of the common determinants of commercial banks lending behaviour and how it affects the lending behaviour of commercial banks in Nigeria. The model used is estimated using Nigerian commercial banks loan advance (LOA) and other determinants or variables such as their volume of deposits (Vd), their investment portfolio (Ip), interest (lending) rate (Ir), stipulated cash reserve requirements ratio (Rr) and their liquidity ratio (Lr) for the period; 1980 – 2005. The model hypothesizes that there is functional relationship between the dependent variable and the specified independent variables. From the regression analysis, the model was found to be significant and its estimators turned out as expected and it was discovered that commercial banks deposits have the greatest impacts on their lending behaviour. The study then suggests that commercial banks should focus on mobilizing more deposits as this will enhance their lending performance and should formulate critical, realistic and comprehensive strategic and financial plans.
Subfields: Accounting, Finance, Information Systems
View Paper: https://www.semanticscholar.org/paper/c09581f5f8ffbc40a0a7a4f0193ab9ce5a49cb00
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Citations in the corpus
- Determinants Of Banks’ Profitability In A Developing Economy: Evidence From Nigeria (2013, background): “As Olokoyo (2011) argues, the current trend in Nigerian banking and "nance sector suggests that the days of cheap pro"ts are now over and only banks with well conceptualized lending and credit administration policies and procedures can survive the emerging competition.”
- The Impact of Non-performing Loans on Bank Lending Behavior: Evidence from the Italian Banking Sector (2015, background): “This has led to an academic focus on bank lending behavior (Micco & Panizza, 2006; Olokoyo, 2011; Djiogap & Ngomsi, 2012; Swamy & Sreejesh, 2012; Ladime et al., 2013).”