BOARD CHARACTERISTICS AND LOAN PORTFOLIO OF DEPOSIT MONEY BANKS IN NIGERIA

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Date
2012-04
Authors
SIEH, YANCY FRANCIS
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Abstract
ABSTRACT Banks play an important role in the development and growth of a nation’s economy. The sector carries out the core role of financial intermediation between the surplus-spending and deficit-spending of economic units. This study examines the relationship between the characteristics of a bank’s board of directors and the banks' loan portfolio of Deposit Money Banks in Nigeria. The board of directors has the responsibility to monitor the loan policy of the bank; therefore, the structure of the board seems likely to influence the portfolio of loans that the bank has outstanding. The study covers the period of six years (2005-2010), with the population of twenty-one (21) a sample of nine banks. Multiple regression is employed as a tool of analysis on the data which are extracted from the annual reports of the sampled banks. The result reveals that, board characteristics of deposit money banks in Nigeria have a strong influence on their loan portfolios during the period of study. From this, it is recommended, among others, that Nigerian deposit money banks should have strong board characteristics, using the board dimension in order to increase their loan portfolio.
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BEING A THESIS SUBMITTED TO THE POST GRADUATE SCHOOL, AHMADU BELLO UNIVERSITY, ZARIA IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER OF SCIENCE (M.SC) DEGREE IN ACCOUNTING AND FINANCE
Keywords
BOARD,, CHARACTERISTICS,, LOAN,, PORTFOLIO,, DEPOSIT,, MONEY,, BANKS,, NIGERIA
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