 The anatomy of banking firm financial conditionJonathan Njoku and Eno L. Inanga International Journal of Economics and Accounting, 2010, vol. 1, issue 3, 284-311 Abstract: This study employs factor analysis to develop a conceptual model of bank financial condition from financial ratios and other characteristics in Nigerian banking. It paints the anatomy of the phenomenon in a conceptual model around the prudential application of market power and market presence to transform deposit mobilisation, under a given macro-economic condition, into earnings quality with capital boosting confidence. The finding is relevant in the understanding of the 2008 global financial crisis. In the context of the global macro economy, the framework casts the current global financial meltdown in the light of the failure of market power and market presence to transform deposit mobilisation into earnings quality as imprudence stretched the sub-prime mortgage and credit default swap risks. Since capital could not offer cushion, confidence fell and bank financial condition grew worse. Keywords: Nigerian banking; fragility; CAMEL(S) risk; run; contagion; bankruptcy; bank ratio; global financial crisis; credit default swap; bank distress; sub prime mortgage; burden; Nigeria; factor analysis; bank financial conditions; financial ratios; market power; market presence; deposit mobilisation; earnings quality. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijecac:v:1:y:2010:i:3:p:284-311 Access Statistics for this article More articles in International Journal of Economics and Accounting from Inderscience Enterprises Ltd |
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