Browsing by Author "ETUDAIYE-MUHTAR, OYEBOLA FATIMA"
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Item ECONOMIC DOWNTURN AND CREDIT RISK: EMPIRICAL EVIDENCE FROM THE NIGERIAN BANKING SECTOR(DEPARTMENT OF ECONOMICS, UMARU MUSA YAR'ADUA UNIVERSITY, KATSINA STATE, NIGERIA, 2018-06) ABDURRAHEEM, ABDULAZEEZ ADEWUYI; ABDULKADIR, RIHANAT IDOWU; ETUDAIYE-MUHTAR, OYEBOLA FATIMAThis paper investigates the impact of the economic downturn on the credit risk of the Nigerian banking sector using quarterly data for the period 2007-2016. The study employs ARDL (Autoregressive Distributed Lag) approach to cointegration. The study also conducted a causality test using the Modified Wald (MWALD) test proposed by Toda and Yamamoto (1995) to determine the direction of causality among the variables. The results provide empirical support for the existence of a long-run relationship between the credit risk of Nigerian banks and macroeconomic variables, namely GDP growth, interest rate, inflation and foreign exchange rate. Most importantly the study finds greater causality power of interest rate, inflation and foreign exchange rate over the credit risk of Nigerian banks during the study period. The findings of the study have important implications for the impacts of the macroeconomic factors on the quality of the risk assets of the banks. One practical implication for Nigerian banks; is the integration and assessment of the potential impacts of the macroeconomic environments into the evaluation and assessment mechanism of the quality of their risk asset portfolio. Similarly, in order to mitigate another round of banking crisis and therefore a financial system instability in the country, the government and the monetary authority should, therefore, work to harmonize the government’s fiscal policies and the monetary policies with a view to reducing the interest rate, inflation and exchange rates in order to reduce the negative impacts of volatile macroeconomic environment on the risk assets of the banking sector. JEL Classification Codes: E44, E51, G01, G21. Keywords: Economic downturn, Credit risk, ARDL Bounds testingItem EFFECT OF INTEREST-FREE FINANCING OF ISLAMIC BANKING ON INFORMATION ASYMMETRY AMONG ISLAMIC BANK CUSTOMERS: EVIDENCE FRON NIGERIA(DEPARTMENTS OF ACCOUNTING AND FINANCE & BUSINESS ADMINISTRATION, FOUNTAIN UNIVERSITY, OSOGBO, NIGERIA, 2020) ABDURRAHEEM, ABDULAZEEZ ADEWUYI; ABDULKADIR, RIHANAT IDOWU; ETUDAIYE-MUHTAR, OYEBOLA FATIMAPurpose: This study investigates whether interest-free financing contract of Islamic banking provides an incentive for entrepreneurs in Nigeria, to provide full information disclosure of their business performance and thus reduce the incidence of information asymmetry in respect of financing received from Islamic banks. Design/methodology/approach: Multivariate Logistic Regression Model was employed to estimate the binary categorical variables of the model. Findings: The result shows a positive and significant relationship between the incentive of interest-free financing contract and motivation to give voluntary information disclosure, thereby minimizing the incidence of asymmetric information in respect of the funding obtained from Islamic banks. It was also found that the religious belief of the entrepreneurs does not significantly impact their decisions to have a banking relationship with Islamic banks but are rather motivated by economic factors and business decisions. Practical implications: The policymakers in Nigeria can, therefore, leverage the positive attitude of entrepreneurs towards Islamic banking interest-free financing contract to promote financial inclusion and narrow down the widening funding gap faced by small and medium enterprises thereby promoting entrepreneurship and significantly reduce the unemployment level in the country. Social implications: Access to accommodative financing of Islamic banking can improve the general welfare of the citizenry, raise the national productivity and positively impact the national income. Originality/value: This study, unlike most previous studies on Islamic banking in Nigeria which were largely focused on the value proposition of Islamic banking, examines the effects of the incentive of interest-free financing contract on the behaviour of Islamic bank customers to volunteer greater information. The study further enriches the literature on the effects of the incentive of interest-free financing as a significant determinant of the attitude of entrepreneur bank customers towards full information disclosure thereby minimizing the incidence of information asymmetry in banking relationship with Islamic banks.Item THE LINEAR EFFECT OF BANK LIQUIDITY ON PROFITABILITY IN SELECTED AFRICAN ECONOMIES(FACULTY OF THE SOCIAL AND MANAGEMENT SCIENCES, OLABISI ONABANJO UNIVERSITY, AGO-IWOYE., 2018) ABDURRAHEEM, ABDULAZEEZ ADEWUYI; ETUDAIYE-MUHTAR, OYEBOLA FATIMA; BAMIGBADE, DAYO; FAGBEMI, TEMITOPE O.Given the importance attached to sound liquidity management in the banking industry, this paper investigates the effect of bank liquidity on profitability. The study employs the bankruptcy cost and risk-return hypotheses to examine the linear effect of bank liquidity on bank profit. Annual bank-specific data from commercial banks in Kenya, Nigeria, and South Africa, for the period 2000-2014, are used in the study. The two-step system generalised method of moment's technique of analysis, an instrumental variable technique that addresses issues such as endogeneity, reverse causality and auto-correlation, is used for the investigation. The results revealed a statistically significant and positive relationship between liquidity and bank profit indicating the applicability of the bankruptcy hypothesis. This implies that banks in the study benefit from reduced financial distress and funding costs thereby increasing profits. The study thus recommends that commercial banks in the selected countries hold higher levels of liquidity to mitigate the risk of failure and increase profit. Keywords: bankruptcy