Price Levels, Exchange Rates, Interest Rates and Return on Equity of Commercial Banks in Nigeria: The Moderating Effect of Bank Competitiveness

Malgit Amos Akims
Additional contact information
Malgit Amos Akims: Department of Public Policy and Administration, Kenyatta University, Nairobi, Kenya.

Post-Print from HAL

Abstract: The study sought to establish the moderating effect of bank competitiveness on the relationship between price levels, exchange rates, interest rates and return on equity of commercial banks in Nigeria. This paper originates from the PhD Thesis of the author. The study focused fifteen out of the seventeen commercial banks in Nigeria which were fully operational within the period 2010 to 2017. The study found that bank competitiveness had a significant moderating effect (β=0.0484, p=0.0130) on the relationship between price levels and return on equity of commercial banks in Nigeria. The study however found that bank competitiveness had no significant moderating effect (β=0.0009, p=0.4990) on the relationship between exchange rates and return on equity of commercial banks in Nigeria. The study further documented that bank competitiveness had no significant moderating effect (β=0.2066, p=0.1860) on the relationship between interest rates and return on equity of commercial banks in Nigeria. The study therefore recommends that in periods of rising price levels, bank management should stay competitive in the market by adequately adjusting interest rates upwards and accordingly. This in turn will help in cushioning the effect of any loss in the real purchasing power of money.

Date: 2022-12-31
References: Add references at CitEc
Citations:

Published in Asian Journal of Economics, Finance and Management , 2022, 4 (1), pp.597-604

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05149963

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().