ANALYSIS OF THE MACRO AND MICRO DETERMINANTS OF PROFITABILITY OF DEPOSIT MONEY BANKS IN NIGERIA
DOI:
https://doi.org/10.51594/ijmer.v5i3.474Abstract
The study examines the determinants of deposit money banks (DMBs) profitability in Nigeria between the periods of 2001-2017. The determinants (internal and external) are Nonperforming Loans (NPLs), Capital Adequacy (CA), Inflation Rate (INFLR), Interest Rate (INTR) and Gross Domestic Product (GDP)) while profitability was proxied with Return on Asset (ROA). The study made used of secondary data that which was sourced from the CBN Statistical Bulletin, CBN Bank Supervisory Annual Report and NDIC Annual Reports. Analysis employed descriptive statistics and correlation matrix. The Multiple Regression Model with SPSS 23 was used to determine if the independent factors and dependent variable have a significant relationship. The findings suggest that NPLs, CA and GDP have significant influence on ROA except NFLR and INTR that is insignificant. Finally, the study concluded that NPLs, CA and GDP are determinants of banks profitability in Nigeria.
Keywords: Profitability, Capital Adequacy, Interest Rate, Inflation Rate and Return on Asset.
Published
Issue
Section
Copyright (c) 2023 ONUORAH, A.C. (PhD; F, CIFIAN)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Fair East Publishing has chosen to apply for the Creative Common Attribution Noncommercial 4.0 Licence (CC BY) license on our published work. Authors who wish to publish their manuscript in our journal agree on the following terms:1. Authors retain the copyright and grant us (Fair East Publishing and its subsidiary journals) the right for first publication with the work licensed under a Creative Commons Attribution (CC BY) License which permits others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal. Under this license, author retains the ownership of the copyright of their content, but anyone is allowed to download, reuse, reprint, modify, distribute, and/or copy the contents as long as the original authors and source are cited. No permission is required from the publishers or authors.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal’s published version of the work (for example, publishing it as a book or submitting it to an institutional repository), with an acknowledgment of its initial publication in Fair East Publishing owned journals.
3. We encourage our authors/contributors to post their work online (such as posting it on their website or some institutional repositories) prior to and during the submission process since it produces scholarly exchange and greater and earlier citation of published work.
