Deposit-Bank

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This study examined the relationship between non-performing loans and the profitability of 

banks, with focus on certain deposit money banks (DMBs) in Nigeria. The study adopted a descriptive 

research design. Data relating to the periods 2008-2017 were collated from the Financial Statements 

of the relevant banks. The Pearson Product Moment Correlation, as computed via the SPSS, was used 

to test the four hypotheses holding the study. Non-performing loans, as measured by the natural 

logarithms of Inflation Rate (INF.RATE) and Bank Credit Policy (BCP) represented the independent 

variable, while Return on Assets (ROA) and Return on Equity (ROE) represented the dependent 

variable (Profitability). The study involved a total population of 28 DMBs, from which 10 was drawn 

into the sample. Further analyses covered measures of central tendencies (mean, median and mode), 

measures of dispersion (Standard Deviation, Variance, Minimum and Maximum values), ANOVA 

(Analysis of Variance) and multiple regression models. The results derived showed that whereas BCP 

has a statistically positive relationship with measures of the dependent, INF.RATE has a statistically 

negative relationship with the measures of the dependent variable, all at the 95% level of confidence. It 

is recommended thus, amongst others, that banks regulate lending in accordance with the rise or fall in 

inflation rate; and if ever loans must be granted, it should be so done with interest elements that favour 

easy repayment as reflected in the respective banks’ credit policies.

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APA

Ozogbuda, S. (2019). Deposit-Bank. Afribary. Retrieved from https://afribary.com/works/deposit-bank

MLA 8th

Ozogbuda, Samuel "Deposit-Bank" Afribary. Afribary, 25 Feb. 2019, https://afribary.com/works/deposit-bank. Accessed 28 Mar. 2024.

MLA7

Ozogbuda, Samuel . "Deposit-Bank". Afribary, Afribary, 25 Feb. 2019. Web. 28 Mar. 2024. < https://afribary.com/works/deposit-bank >.

Chicago

Ozogbuda, Samuel . "Deposit-Bank" Afribary (2019). Accessed March 28, 2024. https://afribary.com/works/deposit-bank