Market Volatility Determinants and Performance of Banks in Nigeria
Abstract: The peculiarity of business activities of the banking sector have made them highlyvulnerable to the risks associated with the recent economic distress in theNigerian financial market. This study was conducted to assess the extent atwhich some selected market volatility determinants affect the performance ofNigerian banks especially as it relates to the return on equity provided byowners. The study covered banks that are quoted in the Nigerian Stock Exchange;data were collected from the annual reports of selected banks and the CBNstatistical bulletin for a period of 2009-2015; and they were analyzed usingdescriptive and inferential statistics. The result of the study showed thatcapitalization, exchange rate and credit risk are statistically significant indetermining returns on equity within the period of 2009- 2015, when consideredat 5% and 1% levels of significance respectively. However, interest rate isfound to be statistically insignificant.
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Authors: Esther Igbekoyi Olusola, Adegbayibi Adesanmi
