Browsing by Author "Jimoh, Abdulrasaq Taiye"
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Item Abolition of universal banking model in Nigeria; A policy somersault?(Faculty of Management Sciences, University of Ilorin, 2016) Jimoh, Abdulrasaq Taiye; Sanni, Ibrahim; Ibrahim, Wasiu Oluwatoyin; Abdulmumin, Biliqees AyoolaThe Central Bank of Nigeria (CBN) abolished universal banking model in Nigeria in 2010 barely ten years of its introduction. This abolition generated a lot of debated as some economists argued that the gains of past reforms, especially adoption of the banking model, had not been fully realised and, therefore, tagged its reversal a " policy somersault". Therefore, this study assessed empirically the performance of Deposit Money Banks in Nigeria before and after the abolition of the model. Data were collected from annual reports of the selected banks listed on the Nigerian Stock Exchange (NSE) and the data were analysed using both descriptive and inferential statistics. One-way ANOVA was used to test the stated hypotheses. Results of the analysis indicate that abolition of universal banking does not have significant effect on ROA, ROE and EPS of Deposit Money Banks in Nigeria. The study concludes that in terms of banks profitability, reversal of universal banking model might actually be policy somersault. It is, however, recommended that further studies be conducted on costs of universal banking and how the abolition affects such cost as conflicts of interest and risk exposure. This is because the findings of this study may not be generalised on all areas of universal banking model.Item Abolition of universal banking model in Nigeria; A policy somersault?(Faculty of Management Sciences, University of Ilorin, 2016) Jimoh, Abdulrasaq Taiye; Sanni, Ibrahim; Ibrahim, Wasiu Oluwatoyin; Abdulmumin, Biliqees AyoolaThe Central Bank of Nigeria (CBN) abolished universal banking model in Nigeria in 2010 barely ten years of its introduction. This abolition generated a lot of debated as some economists argued that the gains of past reforms, especially adoption of the banking model, had not been fully realised and, therefore, tagged its reversal a "policy somersault". Therefore, this study assessed empirically the performance of Deposit Money Banks in Nigeria before and after the abolition of the model. Data were collected from annual reports of the selected banks listed on the Nigerian Stock Exchange (NSE) and the data were analysed using both descriptive and inferential statistics. One-way ANOVA was used to test the stated hypotheses. Results of the analysis indicate that abolition of universal banking does not have significant effect on ROA, ROE and EPS of Deposit Money Banks in Nigeria. The study concludes that in terms of banks profitability, reversal of universal banking model might actually be policy somersault. It is, however, recommended that further studies be conducted on costs of universal banking and how the abolition affects such cost as conflicts of interest and risk exposure. This is because the findings of this study may not be generalised on all areas of universal banking model.Item Banks’ Price Behaviour and its Determinants in Nigeria(College of Business & Social Sciences,Covenant University,Ota,Nigeria, 2021-06-29) Etudaiye-Muhtar, Oyebola Fatima; Jimoh, Abdulrasaq Taiye; Abdurraheem, Abdulazeez Adewuyi; Ibrahim, Wasiu OluwatoyinBank-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 a 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 ratesItem Impact of financial intermediation on economic growth in Nigeria(The Department of Business Administration, University of Ilorin, Ilorin, Nigeria, 2017) Jimoh, Abdulrasaq Taiye; Abdulmumin, Biliqees Ayoola; Sanni, IbrahimFinancial intermediation underscores the catalytic role of banks in economic growth and development of any nation. This is because financial intermediaries such as banks arise to alleviate market frictions like transaction costs, uncertainty about project outcomes and information asymmetries in their effort to mobilize funds and channel same to the most productive unit of the economy. However, the question of whether it is the size/volume or efficiency of financial intermediation that matters for the growth of developing economies like Nigeria. Data were obtained from CBN statistical bulletin and analyzed using Ordinary Least Square (OLS) regression technique. The study found that all the intermediation variables expect credit to private sector and reserve money positively and significantly related to GDP at 5% level of significance. It was concluded that both the size and efficiency of financial intermediation are necessary for the growth of Nigerian economy. The study recommends that deposit money banks should improve their monitoring of private sector credit for effective utilization; and that CBN should pursue monetary policy measures that will further the depth of the banking sector so as to allow more financial inclusion, foster healthy competition within the industry and ensure efficient intermediation.