Effects of Financial Innovations on the Profitability of Deposit Money Banks in Nigeria (Published)
This study examined the effects of financial innovation on the profitability of deposit money banks in Nigeria. the general purpose of the study was to examine the effect of financial innovation on the profitability while the specific objectives was to examine the effect of automated teller machine, electronic fund transfer, internet banking, mobile banking and investment on information communication technology on return on equity of deposit money banks. The study formulated four hypotheses and used panel data regression to analyze the secondary data extracted from the annual reports and accounts of the fourteen firms for the period 2009 to 2017. Return on equity was the dependent variables while automated teller machine, electronic fund transfer, internet banking, mobile banking and investment on information communication technology on return were the independent variables. Findings of the study revealed that automated teller machine and electronic fund transfer have negative relationship with return on equity while internet banking, mobile banking and investment on information communication technology have positive relationship with return on equity. The study recommends that deposit money banks should adopt financial innovations, deposit money banks invest in technological innovations and banks should transform banking service by adapting to mobile banking and agency banking so that not only to providing jobs but also increase market share.
Keywords: Banks’, Deposit, Money, Nigeria, Profitability, financial innovations
Interactions between Deposit Money Banks Business and the Nigerian Economy (Published)
The major objective of this study is to examine the impact of commercial banks operations on the economic growth and development of Nigeria for the period (1980-2014). The study specifically examined the impact of private sector credit, deposit mobilization, interest rate spread and commercial bank holding of treasury bills on the growth of the Nigerian economy. The ex-post facto and exploratory designs were adopted and secondary data were sourced from the CBN statistical bulletin and collected using desk survey. Error correction mechanism was employed to assess the impact of private sector credit, deposit mobilization, interest rate spread and commercial bank holding of treasury bills on the growth of the Nigerian economy. Our result revealed that there is a positive and significant relationship between private sector credit, commercial bank deposit mobilization, interest rate spread and the development of the Nigerian economy; while there is no significant relationship between deposit money bank holding of treasury bills and the development of the Nigerian economy. Based on these findings, it is recommended that government and other monetary authorities should use selective credit control measures in order to persuade banks to grant more loan and advances to the private sectors which are the engine of economic growth in Nigeria. Efforts should be made by government to regulate the interest rate charged by banks on lending to businesses in Nigeria and finally, the holding of treasury bills by commercial banks should be reduced to enhance the ability to lend to the public for productive purposes
Keywords: Deposit, Money, Nigerian Economy, banks business
Estimating Money Demand for Ghana (Published)
The study suggested that money demand function for Ghana using M1 and M2 remained relatively unstable between 1991 and 2011 as evidenced by trends in recursive residual and the cumulative sums of squared residuals derived from the estimated models. However, real money demand function for broad money (M2+) was found to be stable relative to real money demand functions estimated using for M1 and M2 as dependent variables. The study therefore concluded that real money demand function for M1 and M2 are remained relatively unstable in Ghana compared with real money demand function for broad money which exhibits some degree of stability.
Keywords: Demand, Money, Recursive, Unit Root
Effect of Credit Management on Performance of Commercial Banks in Rwanda (A Case Study of Equity Bank Rwanda Ltd) (Published)
Credit management is one of the most important activities in any company and cannot be overlooked by any economic enterprise engaged in credit irrespective of its business nature. Sound credit management is a prerequisite for a financial institution’s stability and continuing profitability, while deteriorating credit quality is the most frequent cause of poor financial performance and condition. As with any financial institution, the biggest risk in bank is lending money and not getting it back. The study sought to determine the effect of credit management on the financial performance of commercial banks in Rwanda. The study adopted a descriptive survey design. The target population of study consisted of 57 employees of Equity bank in credit department. Entire population was used as the sample giving a sample size of size of 57 employees. Purposive sampling technique was used in sampling where the entire population was included in the study. Primary data was collected using questionnaires which were administered to the respondents by the researcher. Descriptive and inferential statistics were used to analyze data. The study found that client appraisal, credit risk control and collection policy had effect on financial performance of Equity bank. The study established that there was strong relationship between financial performance of Equity bank and client appraisal, credit risk control and collection policy. The study established that client appraisal, credit risk control and collection policy significantly influence financial performance of Equity bank. Collection policy was found to have a higher effect on financial performance and that a stringent policy is more effective in debt recovery than a lenient policy. The study recommends that Equity bank should enhance their collection policy by adapting a more stringent policy to a lenient policy for effective debt recovery.
Keywords: Banks’, Client Appraisal, Credit Management, Debt Recovery, Financial Performance, Lending, Money, Risk Control