Determinants of nonperforming loans after recapitalization in the Nigerian banking industry: Does competition matter?

被引：4
|
作者：
Bolarinwa, Segun Thompson [1 ,2 ]
Akinlo, Anthony Enisan [3 ,4 ]
机构：
[1] Christland Univ, Dept Econ, Abeokuta, Nigeria
[2] Univ Ft Hare, Govan Mbeki Res Dev Ctr GMRDC, Alice, South Africa
[3] Obafemi Awolowo Univ, Dept Econ, Ife, Nigeria
[4] Redeemers Univ, Dept Econ, Ede, Nigeria
来源：
AFRICAN DEVELOPMENT REVIEW-REVUE AFRICAINE DE DEVELOPPEMENT | 2022年 / 34卷 / 03期
关键词：
capitalization; competition; impaired loans; Nigeria; nonperforming loans; NON-PERFORMING LOANS; MARKET POWER; FINANCIAL STABILITY; RISK-TAKING;
D O I：
10.1111/1467-8268.12661
中图分类号：
F0 [经济学]; F1 [世界各国经济概况、经济史、经济地理]; C [社会科学总论];
学科分类号：
0201 ; 020105 ; 03 ; 0303 ;
摘要：
This paper examines the effect of competition on nonperforming loans in the Nigerian banking industry between 2011 and 2018 using the system generalized method of moments. The findings establish the competition-stability hypothesis in the Nigerian context. The interaction between competition and bank size/capitalization has a positive and significant effect on nonperforming loans. These results showed that low competition increased nonperforming loans in the Nigerian banking industry while bank size and capitalization enhanced competition to increase nonperforming loans. Also, bank size/capitalization are complementary for addressing nonperforming loans. The paper recommends that the Central Bank of Nigeria (CBN) regulates the market power of the five largest banks in the industry to address the adverse effects of competition on mounting nonperforming loans in the Nigerian banking industry.
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页码：309 / 323
页数：15
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