Effect of Interest Rate Spread and Bank Specific Factors on Survival of Tier-One and Tier-Two Deposit Money Banks in Nigeria

Authors

  • Segun Kamoru Fakunmoju DEPARTMENT OF FINANCE, LAGOS STATE UNIVERSITY, OJO, LAGOS STATE, NIGERIA
  • Babatunde Jinadu Ph.D student Department of Finance, Lagos State University, Ojo, Lagos State, Nigeria
  • Alexander A. Akindele Department of Finance, Lagos State University, Ojo, Lagos State, Nigeria

DOI:

https://doi.org/10.5195/emaj.2022.264

Keywords:

Assets Quality, Bank Size, Capital Adequacy, Management Efficiency, Spread

Abstract

In today’s economic setting, there must be a healthy banking sector for banks to survive. Banks survival determine sound financial mediator in achieving economic performance. However, bank spread and unstable policies towards bank specific factors have become threat to bank survival in Nigeria. Secondary data and ex-post facto research design were used within the period of 2011-2020 for both Tier-1 and Tier-2 deposit money banks in Nigeria. The study found that interest rate spread, asset quality, management efficiency, bank size and board size affect bank survival in Nigeria. The study suggests that bank managers should give maximum attention to interest rate spread, and bank specific factor like asset quality, management efficiency, bank size and board size so as to ensure their survival.

Author Biographies

Segun Kamoru Fakunmoju, DEPARTMENT OF FINANCE, LAGOS STATE UNIVERSITY, OJO, LAGOS STATE, NIGERIA

Department of Finance, Lecturer II

Babatunde Jinadu, Ph.D student Department of Finance, Lagos State University, Ojo, Lagos State, Nigeria

Ph.D student Department of Finance, Lagos State University, Ojo, Lagos State, Nigeria

Alexander A. Akindele, Department of Finance, Lagos State University, Ojo, Lagos State, Nigeria

Ph.D student Department of Finance, Lagos State University, Ojo, Lagos State, Nigeria

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Published

2022-12-19

Issue

Vol. 12 No. 2 (2022)

Section

Articles

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