Non-Performing Loans and Key Macroeconomic Variables' Nexus in Nigeria

Egiyi, Modesta Amaka (2022) Non-Performing Loans and Key Macroeconomic Variables' Nexus in Nigeria. European Journal of Finance and Management Sciences, 6 (1). pp. 14-19. ISSN 2754-4109

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Abstract

From a practical standpoint, non-performing loans are one of the big challenges for the banking sector even in Nigeria. This paper investigated this serious challenge by developing the nexus between non- performing loans and key macroeconomic indicators. Upon this backdrop, the data of Economic indicators (Interest Rates, Inflation and Gross Domestic Product) and Non- performing Loans are employed for the time span of 2016-2020 on a quarterly basis. By applying the Gaussian regression, the result revealed that a positive relationship exists between the interest rate, inflation rate and non-performing loans. However, there is a negative relationship between gross domestic product and non-performing Loans hence, non-performing loans negatively affect economic growth.

Item Type: Article
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Management and Social Sciences
Depositing User: mrs chioma hannah
Date Deposited: 22 Aug 2022 08:10
Last Modified: 22 Aug 2022 08:10
URI: http://eprints.gouni.edu.ng/id/eprint/3593

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