International Journal of Social Science & Economic Research
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Title:
BANKING REFORMS AND DEPOSIT MONEY BANKS PROFITABILITY IN NIGERIA

Authors:
Professor Peter Ayunku and Tonprebofa Waikumo Okotori

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Professor Peter Ayunku1 and Tonprebofa Waikumo Okotori2
1. Dean Faculty of Management Sciences, Niger Delta University, and Wilberforce Island Bayelsa StateNigeria.
2. PhD scholar, Faculty of Management Sciences. Niger Delta University, Wilberforce Island, Bayelsa State.

MLA 8
Ayunku, Professor Peter, and Tonprebofa Waikumo Okotori. "BANKING REFORMS AND DEPOSIT MONEY BANKS PROFITABILITY IN NIGERIA." Int. j. of Social Science and Economic Research, vol. 7, no. 11, Nov. 2022, pp. 3767-3793, doi.org/10.46609/IJSSER.2022.v07i11.015. Accessed Nov. 2022.
APA 6
Ayunku, P., & Okotori, T. (2022, November). BANKING REFORMS AND DEPOSIT MONEY BANKS PROFITABILITY IN NIGERIA. Int. j. of Social Science and Economic Research, 7(11), 3767-3793. Retrieved from https://doi.org/10.46609/IJSSER.2022.v07i11.015
Chicago
Ayunku, Professor Peter, and Tonprebofa Waikumo Okotori. "BANKING REFORMS AND DEPOSIT MONEY BANKS PROFITABILITY IN NIGERIA." Int. j. of Social Science and Economic Research 7, no. 11 (November 2022), 3767-3793. Accessed November, 2022. https://doi.org/10.46609/IJSSER.2022.v07i11.015.

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ABSTRACT:
The study did investigate the reforms in the Nigerian banking sector and its impact on bank profitability. Data for this study were annual and covered 12 of the 22 deposit money banks (DMB’s) in Nigeria. The dynamic GMM methodology was used for the panel data analysis. The findings from the study show that bank credit risk exposure, the inflation rate and the exchange rate were significant indicators of profitability of DMB’s in Nigeria. These results indicate that banking reforms may have reduced the credit risk exposure of DMB’s, hence increasing their profitability. The reforms seem to have enhanced the market concentration of banks as given in the structure conduct performance hypothesis (SCPH) as well as efficiency structural hypothesis(ESH); the impact was rather broad as it made these banks become global players in banking. The reforms in the banking sector thus need to be a changing continuum as new challenges emerge.

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