NONPERFORMING LOANS PORTFOLIO AND ITS EFFECT ON BANK PROFITABILITY IN NIGERIA

Fuente: Redalyc
Saved in:
Bibliographic Details
Main Author: John N. N. Ugoani
Format: Artículo científico
Language:en
Published: Instituto Federal de Educação, Ciência e Tecnologia de São Paulo 2016
Subjects:
Online Access:
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1876454517652848640
author John N. N. Ugoani
author_facet John N. N. Ugoani
contents NONPERFORMING LOANS PORTFOLIO AND ITS EFFECT ON BANK PROFITABILITY IN NIGERIA John N. N. Ugoani Administración y Contabilidad Self dealing Shareholders funds Bank profitability Nonperforming loans portfolio Huge nonperforming loans portfolio erodes the ability of banks to make profits. In the 1990s and beyond many Nigerian banks became weak and highly unprofitable due to excessive nonperforming loans portfolio accumulated by bank promoters and management that led to their demise. Insider dealing was the major cause of large nonperforming loan portfolio in Nigeria, involving over-extension of loans to promoters, directors and significant others that became bad and irrecoverable. To clean up the mess in the banking sector and return the banks to the paths of sound management and profitability, the CBN had to inject about N700bn in a bailout exercise while purging the system of bad and irresponsible management teams .The exploratory research design was adopted. Data generated were organized and coded before they were classified. To achieve the objective of the study data analyses were done through descriptive and regression analyses using the statistical package for the social sciences for the regression. With the regression result of Y = 78.353 – 4.04x it was found that nonperforming loans portfolio has negative effect on bank profitability. 2016 artículo científico 2236-269X https://www.redalyc.org/articulo.oa?id=449545793003 en http://www.redalyc.org/revista.oa?id=4495 Independent Journal of Management & Production application/pdf Instituto Federal de Educação, Ciência e Tecnologia de São Paulo Independent Journal of Management & Production (Brasil) Num.2 Vol.7
format Artículo científico
id redalyc_449545793003
institution Redalyc
language en
publishDate 2016
publisher Instituto Federal de Educação, Ciência e Tecnologia de São Paulo
spellingShingle NONPERFORMING LOANS PORTFOLIO AND ITS EFFECT ON BANK PROFITABILITY IN NIGERIA
John N. N. Ugoani
Administración y Contabilidad
Self dealing
Shareholders funds
Bank profitability
Nonperforming loans portfolio
NONPERFORMING LOANS PORTFOLIO AND ITS EFFECT ON BANK PROFITABILITY IN NIGERIA John N. N. Ugoani Administración y Contabilidad Self dealing Shareholders funds Bank profitability Nonperforming loans portfolio Huge nonperforming loans portfolio erodes the ability of banks to make profits. In the 1990s and beyond many Nigerian banks became weak and highly unprofitable due to excessive nonperforming loans portfolio accumulated by bank promoters and management that led to their demise. Insider dealing was the major cause of large nonperforming loan portfolio in Nigeria, involving over-extension of loans to promoters, directors and significant others that became bad and irrecoverable. To clean up the mess in the banking sector and return the banks to the paths of sound management and profitability, the CBN had to inject about N700bn in a bailout exercise while purging the system of bad and irresponsible management teams .The exploratory research design was adopted. Data generated were organized and coded before they were classified. To achieve the objective of the study data analyses were done through descriptive and regression analyses using the statistical package for the social sciences for the regression. With the regression result of Y = 78.353 – 4.04x it was found that nonperforming loans portfolio has negative effect on bank profitability. 2016 artículo científico 2236-269X https://www.redalyc.org/articulo.oa?id=449545793003 en http://www.redalyc.org/revista.oa?id=4495 Independent Journal of Management & Production application/pdf Instituto Federal de Educação, Ciência e Tecnologia de São Paulo Independent Journal of Management & Production (Brasil) Num.2 Vol.7
title NONPERFORMING LOANS PORTFOLIO AND ITS EFFECT ON BANK PROFITABILITY IN NIGERIA
topic Administración y Contabilidad
Self dealing
Shareholders funds
Bank profitability
Nonperforming loans portfolio
url https://www.redalyc.org/articulo.oa?id=449545793003