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Nwajuo, Vivian (2022) Critical analysis of the role of Central Bank in regulating the non-performing loans and performances of the Nigerian bank system. Masters thesis, Dublin, National College of Ireland.
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Abstract
This research was carried out to examine and investigate, the role of the Central Bank in regulating non-performing loans and the performance of the Nigerian banking system. However, Nigerian banks are exceeding the Central Bank of Nigeria's 5% threshold on nonperforming loans, exposing them to a large number of unpaid debts as a result of borrowers who didn't fulfill their financial responsibilities. The study adopted the ex-post facto research design. The study population was 33 banks that the Central Bank of Nigeria granted a license to operate in Nigeria between 2000 and 2020. Both descriptive and inferential statistics were used to analyze the data. The p-value (.006) was larger than the level of significance of 0.05 in the analysis of variance, indicating that the model was significant in predicting these effects in Nigeria. Furthermore, the F-calculated value (6.310) was higher than the tabulated value at conventional df (3, 15). According to the coefficients, all independent factors, including Bank lending rate, Net Interest Margin, and non-performance loans, had a positive but statistically insignificant impact on Return on Asset. In order to prevent the buildup of bad credit, which is impeding bank performance in Nigeria, the study urged the central bank of Nigeria to establish a special court that will swiftly decide loan default and recovery cases for Nigerian banks. It also urged Nigerian banks to use credit reference bureau information when processing a borrower's credit application. Due diligence may minimize the bank's potential for timely loan defaults while also boosting profits.
| Item Type: | Thesis (Masters) |
|---|---|
| Subjects: | D History General and Old World > DT Africa H Social Sciences > HG Finance > Banking H Social Sciences > HG Finance > Credit. Debt. Loans. |
| Divisions: | School of Business > Master of Science in Finance |
| Depositing User: | Clara Chan |
| Date Deposited: | 26 Oct 2022 10:10 |
| Last Modified: | 26 Oct 2022 10:10 |
| URI: | https://norma.ncirl.ie/id/eprint/5824 |
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