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The Impact of Capital Adequacy on Bank Performance: Evidence From Commercial Banks in Nigeria
Content Structure of The Impact of Capital Adequacy on Bank Performance: Evidence From Commercial Banks in Nigeria
The abstract contains the research problem, the objectives, methodology, results, and recommendations
- Chapter one of this thesis or project materials contains the background to the study, the research problem, the research questions, research objectives, research hypotheses, significance of the study, the scope of the study, organization of the study, and the operational definition of terms.
- Chapter two contains relevant literature on the issue under investigation. The chapter is divided into five parts which are the conceptual review, theoretical review, empirical review, conceptual framework, and gaps in research
- Chapter three contains the research design, study area, population, sample size and sampling technique, validity, reliability, source of data, operationalization of variables, research models, and data analysis method
- Chapter four contains the data analysis and the discussion of the findings
- Chapter five contains the summary of findings, conclusions, recommendations, contributions to knowledge, and recommendations for further studies.
- References: The references are in APA
- Questionnaire.
Abstract Of The Impact of Capital Adequacy on Bank Performance: Evidence From Commercial Banks in Nigeria
This paper examines the impact of capital adequacy ratio on Nigeria’s commercial banks performance after the impact of the 2008-2009 Global Financial Crash using Ordinary Least Square Methods with two models. The first model proxy bank performance with return on assets while the second with return on equity. From the descriptive statistical analysis, the mean value of capital adequacy for the study period is 14.30%, which provides evidence that Nigerian commercial banks maintain higher level of capital requirement than prescribed by IMF’s Basel agreement of 8% and CBN’s 10%. The regression results indicate that even after the Global Financial Crash, capital adequacy ratio showed evidence of strong significance at 5% level in explaining bank performance proxy by return on asset ratio. However, the second model showed a weak correlation as all the determinants were insignificant at 5% levels but had their correct economic signs. Although the variables on asset quality and liquidity risk proxy by non-performing loans ratio and liquidity ratio variables respectively were not statistically significant in explaining Nigerian banks performance. Risk management institutions like the Asset Management Company of Nigeria (AMCON) has to do more in riding the sector of toxic debts.
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