The impact of risk governance and capital requirement on bank stability in Nigeria
This study investigates the impact of risk governance and capital requirement on bank stability in Nigeria. The data was obtained through collection of 214 company-year observations for the period of 2006-2017, which coincided with the implementation of the code of governance for banks. It covers el...
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my-uum-etd.103122023-02-12T07:58:38Z The impact of risk governance and capital requirement on bank stability in Nigeria 2020 David, Fajembola Olusola Abdul Rahman, Nora Azureen Md Rus, Rohani School of Economics, Finance & Banking School of Economics, Finance and Banking HD28-70 Management. Industrial Management HD61 Risk Management This study investigates the impact of risk governance and capital requirement on bank stability in Nigeria. The data was obtained through collection of 214 company-year observations for the period of 2006-2017, which coincided with the implementation of the code of governance for banks. It covers eleven years after the issuance of the code of governance. All deposit money banks in Nigeria were used as samples for the study. Bank stability was measured by Z-Score, risk governance attributes by the risk management committee (RMC), audit committee (AC) and the board of director; while capital requirement ratio (CARR) was measured by capital adequacy. Besides that, capital requirement ratio was also considered as the measurement for the external governance. By using the multiple regression analysis, results revealed that with respect to the RMC, only the size has positive and significant relationship with bank stability. Similarly, for the AC, only the expertise has significant relationship and positively affect bank stability; meanwhile for board structure, the only positive attribute was gender. Also, results showed that the board and its risk governance committees did not effectively promote bank stability in Nigeria. However, results revealed that capital requirement had a significant positive relationship with bank stability, thus suggesting that CARR is an important external mechanism especially for banking sector. Moreover, risk governance practices in the Nigerian banking industry have low influence on bank stability. The findings showed the weaknesses in the central bank supervision of banks, which contributed to the slack in internal governance. The policy implications arising from these findings suggested a review of the code of governance to strengthen the central bank’s supervision, increase the number of women on the boards and legal reforms to strengthen the courts on the enforcement of the codes. 2020 Thesis https://etd.uum.edu.my/10312/ https://etd.uum.edu.my/10312/1/permission%20to%20deposit-grant%20the%20permission-900250.pdf text eng staffonly https://etd.uum.edu.my/10312/2/s900250_01.pdf text eng public other doctoral Universiti Utara Malaysia |
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Universiti Utara Malaysia |
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UUM ETD |
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eng eng |
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Abdul Rahman, Nora Azureen Md Rus, Rohani |
topic |
HD28-70 Management Industrial Management HD61 Risk Management |
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HD28-70 Management Industrial Management HD61 Risk Management David, Fajembola Olusola The impact of risk governance and capital requirement on bank stability in Nigeria |
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This study investigates the impact of risk governance and capital requirement on bank stability in Nigeria. The data was obtained through collection of 214 company-year observations for the period of 2006-2017, which coincided with the implementation of the code of governance for banks. It covers eleven years after the issuance of the code of governance. All deposit money banks in Nigeria were used as samples for the study. Bank stability was measured by Z-Score, risk governance attributes by the risk management committee (RMC), audit committee (AC) and the board of director; while capital requirement ratio (CARR) was measured by capital adequacy. Besides that, capital requirement ratio was also considered as the measurement for the external governance. By using the multiple regression analysis, results revealed that with respect to the RMC, only the size has positive and significant relationship with bank stability. Similarly, for the AC, only the expertise has significant relationship and positively affect bank stability; meanwhile for board structure, the only positive attribute was gender. Also, results showed that the board and its risk governance committees did not effectively promote bank stability in Nigeria. However, results revealed that capital requirement had a significant positive relationship with bank stability, thus suggesting that CARR is an important external mechanism especially for banking sector. Moreover, risk governance practices in the Nigerian banking industry have low influence on bank stability. The findings showed the weaknesses in the central bank supervision of banks, which contributed to the slack in internal governance. The policy implications arising from these findings suggested a review of the code of governance to strengthen the central bank’s supervision, increase the number of women on the boards and legal reforms to strengthen the courts on the enforcement of the codes. |
format |
Thesis |
qualification_name |
other |
qualification_level |
Doctorate |
author |
David, Fajembola Olusola |
author_facet |
David, Fajembola Olusola |
author_sort |
David, Fajembola Olusola |
title |
The impact of risk governance and capital requirement on bank stability in Nigeria |
title_short |
The impact of risk governance and capital requirement on bank stability in Nigeria |
title_full |
The impact of risk governance and capital requirement on bank stability in Nigeria |
title_fullStr |
The impact of risk governance and capital requirement on bank stability in Nigeria |
title_full_unstemmed |
The impact of risk governance and capital requirement on bank stability in Nigeria |
title_sort |
impact of risk governance and capital requirement on bank stability in nigeria |
granting_institution |
Universiti Utara Malaysia |
granting_department |
School of Economics, Finance & Banking |
publishDate |
2020 |
url |
https://etd.uum.edu.my/10312/1/permission%20to%20deposit-grant%20the%20permission-900250.pdf https://etd.uum.edu.my/10312/2/s900250_01.pdf |
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