Department of Banking and Finance

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https://keffi.nsuk.edu.ng/handle/20.500.14448/555

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Browsing Department of Banking and Finance by Author "Aderonke, Mmo-Oyeleke Shakirat"

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    EFFECT OF NON-PERFORMING LOANS ON THE PROFIT OF DEPOSIT MONEY BANKS IN NIGERIA
    (Department of Banking and Finance, Nasarawa State University Keffi, 2021-01-01) Aderonke, Mmo-Oyeleke Shakirat; Dele, Olaolu; Nwala, Maureen Nneka
    The study is on Effect of Non-Performing Loans on the Profit of Deposit Money Banks in Nigeria. The main objective of the study is to investigate the effect of non-performing loans on the profit of deposit money bank in Nigeria from 1998 to 2018. The bank net income serves as the independent variable while non-performing loans, return on equity and capital adequacy ratio serves as the dependent variables. The secondary data covering the period 1998 to 2018 were sourced from the Central Bank of Nigeria (CBN) statistical bulletin, National Bureau of Statistics (NBS) and Journals. The Ordinary Least Square (OLS) regression technique was employed to analyze the data. The estimated results revealed that a positive and significant relationship between bank profitability and non-performing loans in Nigeria. The study therefore, recommends that money deposit banks should devise a mechanism for monitoring how disbursed loans to customers are been used in the furtherance of the purpose for which the loans were given out in the first place to stem its effect on banks' profitability in Nigeria.