INTEREST RATE SPREAD AND THE REVENUE OF COMMERCIAL BANKS IN NIGERIA (2005 – 2018)
Mark Osam and
Willy Ugwuanyi
Additional contact information
Mark Osam: Department of Banking and Finance, Enugu State University of Science and Technology, Enugu, Nigeria.
Willy Ugwuanyi: Department of Banking and Finance, Enugu State University of Science and Technology, Enugu, Nigeria.
Post-Print from HAL
Abstract:
The study investigated the impact of interest rate spread on revenue performance of commercial banks in the Nigerian financial system. Using the Autoregressive Distributed Lag (ARDL) framework and using data set covering 2005 to 2018, it was found that interest rate spread positively and significantly affects the profit performance of commercial banks in Nigeria. It is therefore recommended that deliberate policies be adopted to ensure interest rate regimes that enhance not just bank profitability but also the overall growth of the economy. This study concludes that proper management of the interest rate spreads of commercial banks in Nigeria may not necessarily be the only sufficient tool for the much needed financial stability for sustainable and economic development but a blend of so many other factors. A competitive banking environment promotes allocative and productive efficiency by encouraging the greatest supply of credit and advances at the lowest price.
Date: 2019-11-02
References: Add references at CitEc
Citations:
Published in Journal of Global Economics, Management and Business Research, 2019, 11 (4), pp.175-188
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-05305972
Access Statistics for this paper
More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().