Browsing by Author "Abdulazeez Adewuyi Abdurraheem"

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    Banks’ Price Behaviour and its Determinants in Nigeria
    (COLLEGE OF BUSINESS AND SOCIAL SCIENCES COVENANT UNIVERSITY, 2021-01-25) Oyebola Fatima Etudaiye-Muhtar; Abdulrazaq Taiye Jimoh; Abdulazeez Adewuyi Abdurraheem; Wasiu Oluwatoyin Ibrahim
    Bank-based financial systems, through the financial intermediation function, enhance economic growth. However, in the performance of this function, banks are faced with issues such as information asymmetry and inefficient institutional qualities that may lead to increased operational costs which reflects as social costs of financial intermediation and are passed on to economic units. Consequently, banks may be confronted with the problem of determining the right price for its products and services. On this premise, this study examines the pricing behaviour of Nigerian commercial banks and its determinants. The random effects regression estimation technique is used on annual panel data of 15 publicly listed Nigerian commercial banks for the period 2005 – 2017. Results from the investigation show that bank-specific factors such as bank size (0.871, p<0.05) liquidity (0.256, p<0.01), credit quality (0.095, p<0.1), and inflation (0.436, p<0.05) as a macroeconomic variable, have positive and significant effects on bank price behaviour. These findings suggest that the variables are associated with higher social costs of financial intermediation in commercial banks in Nigeria. It is recommended that in order to lower borrowing costs, banks should endeavour to reduce the level of these bank-specific factors which would lead to reduction in costs associated with information asymmetry and inefficiency. In terms of inflation, banks are recommended to factor in inflation related costs into their pricing process while monetary policy regulators should put in place, policies that target reduction in inflation rates.
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    CREDIT RISK OF ISLAMIC BANKING AND MACROECONOMIC FACTORS IN A DUAL BANKING SYSTEM: EVIDENCE FROM MALAYSIA
    (Deparment of Accounting, University of Ilorin, 2022-06-30) Abdulazeez Adewuyi Abdurraheem; Ibrahim Abiodun Oladapo; Ibraheem Ishola Abdurraheem
    Abstract Understanding the effects of the macro-economic environment‟s dynamics on the credit risk of Islamic banking in a dual banking system is imperative to the efficiency and stability of the Islamic banking industry. This study empirically investigates the effects of macroeconomic factors on the credit risk of Islamic banking in an economic and financial environment where conventional and Islamic banking systems operate under different statutory and regulatory environments such as the case in Malaysia. The study employs Dynamic Ordinary Least Squares (DOLS) Cointegration Modelling Approach using data from 2007 to 2022. The study finds a significant negative long-term relationship between the Islamic banking credit risk and economic growth (GDP). A positive and significant long -run relationship was found between credit risk of Islamic banking and the conventional interest rate. Foreign currency exchange rate and inflation did not show long-run relationship with the credit risk of Islamic banking in Malaysia. The findings of this study further underscore the need for understanding the effects of the macroeconomic factors not only on conventional banks, but also on the Islamic banking system. Of significant importance is the effect of conventional interest rate having positive long-run relationship with Islamic banking. Findings of this study are expected to benefit not only Islamic bank managers but equally of importance to regulatory authorities, financial analysts and policy makers both in government and business.