Bussecon Review of Finance & Banking

Yazarlar: NenuBari Ikue-John, Emeka Nkoro

Konular:-

DOI:10.36096/brfb.v1i1.96

Anahtar Kelimeler:Capital Adequacy,Profitability,Authorized International DMBs,Efficiecny of Management

Özet: The study examines the dynamic responses of profitability indexes to capital adequacy ratios of authorized internationalized deposit money banks in Nigeria. The data were sourced from the financial yearbooks of the deposit money banks and analyzed with static and dynamic panel estimators. The static estimator shows that the banks have differences in managerial style, size, and profitability. Also, it was revealed that return on asset and return on equity responded positively to asset size, the efficiency of the use of the asset and current ratio in the static models and they were highly significant. However, they were insignificant in the dynamic specifications except for asset size that was significant in the return on asset model showing a weak dynamic response of profitability to capital adequacy ratios. Hence the study recommended that Banks should improve their share based as to increase the asset as this will improve profitability.

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