Banks’ Price Behaviour and its Determinants in Nigeria

Simple item page
dc.contributor.authorOyebola Fatima Etudaiye-Muhtar
dc.contributor.authorAbdulrazaq Taiye Jimoh
dc.contributor.authorAbdulazeez Adewuyi Abdurraheem
dc.contributor.authorWasiu Oluwatoyin Ibrahim
dc.date.accessioned2024-05-27T07:39:02Z
dc.date.available2024-05-27T07:39:02Z
dc.date.issued2021-01-25
dc.description.abstractBank-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.
dc.identifier.citation11. Etudaiye-Muhtar, O. F., Jimoh, A. T., Abdurraheem, A. A. & Ibrahim, W.O. (2021): Banks’ price behaviour and its determinants in Nigeria. Covenant Journal of Business and Social Sciences, vol. 12 (1), 1-14, Published by the College of Business and Social Sciences, Covenant University, Ota. https://journals.covenantuniversity.edu.ng/index.php/cjbss
dc.identifier.urihttps://uilspace.unilorin.edu.ng/handle/123456789/14461
dc.publisherCOLLEGE OF BUSINESS AND SOCIAL SCIENCES COVENANT UNIVERSITY
dc.subjectNet interest margin
dc.subjectprice behaviour
dc.subjectNigeria
dc.subjectandom effect
dc.titleBanks’ Price Behaviour and its Determinants in Nigeria

Files

Original bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
CONVENANT - ETUDAIYE- MUHTAR (2021)1.pdf
Size:
773.23 KB
Format:
Adobe Portable Document Format
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description:
Download

Collections