Do Macroeconomic Variables Predict Deposit Money Banks’ Performance in Nigeria

Ejem Chukwu Agwu; Ogbonna Udochukwu Godfrey; Ogbulu Onyemachi Maxwell

doi:doi:10.11648/j.ijafrm.20200503.11

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Do Macroeconomic Variables Predict Deposit Money Banks’ Performance in Nigeria

Ejem Chukwu Agwu, Ogbonna Udochukwu Godfrey, Ogbulu Onyemachi Maxwell

Published in International Journal of Accounting, Finance and Risk Management (Volume 5, Issue 3)

Received: 25 May 2020 Accepted: 8 June 2020 Published: 16 June 2020

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Abstract

This study investigated the relationship between macroeconomic variables and the performance of deposit money banks in Nigeria is incited by the heated arguments of finance and economic researchers’ on whether macroeconomic variables; Gross Domestic Product rate, interest rate, inflation rate, money supply and exchange rate are or not in control of the banks’ management banking sector. Based on that, researchers in this study want to take a solid position on whether macroeconomic variables positively or negatively or of no effect on the performance of deposit money banks (DMBs) in Nigeria. The study made use of suitable finametrica tools to analyze the models. The results of the Error Correction Model and General Method Moments results that all the macroeconomic variables employed (economic growth rate, interest rate, inflation rate, money supply and exchange rate in this study have no significant relationship with bank performance. VECG ranger Causality/Block Exogeneity Wald Test observed that each and jointly, the macroeconomic variables do not cause bank performance both in the short run and long run. Again, impulse response result revealed that bank performance responds insignificantly to the shocks of all the macroeconomic variables. Consequently the researchers advocate that deposit money banks in Nigeria within herent discretionary policy be proactive to the monetary and fiscal policies of regulatory authorities in order to enhance their performance.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 5, Issue 3)
DOI	10.11648/j.ijafrm.20200503.11
Page(s)	118-130
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Macroeconomic Variables, ROA, ECM, GMM, VAR

References

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APA Style

Ejem Chukwu Agwu, Ogbonna Udochukwu Godfrey, Ogbulu Onyemachi Maxwell. (2020). Do Macroeconomic Variables Predict Deposit Money Banks’ Performance in Nigeria. International Journal of Accounting, Finance and Risk Management, 5(3), 118-130. https://doi.org/10.11648/j.ijafrm.20200503.11

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ACS Style

Ejem Chukwu Agwu; Ogbonna Udochukwu Godfrey; Ogbulu Onyemachi Maxwell. Do Macroeconomic Variables Predict Deposit Money Banks’ Performance in Nigeria. Int. J. Account. Finance Risk Manag. 2020, 5(3), 118-130. doi: 10.11648/j.ijafrm.20200503.11

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AMA Style

Ejem Chukwu Agwu, Ogbonna Udochukwu Godfrey, Ogbulu Onyemachi Maxwell. Do Macroeconomic Variables Predict Deposit Money Banks’ Performance in Nigeria. Int J Account Finance Risk Manag. 2020;5(3):118-130. doi: 10.11648/j.ijafrm.20200503.11

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@article{10.11648/j.ijafrm.20200503.11,
  author = {Ejem Chukwu Agwu and Ogbonna Udochukwu Godfrey and Ogbulu Onyemachi Maxwell},
  title = {Do Macroeconomic Variables Predict Deposit Money Banks’ Performance in Nigeria},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {5},
  number = {3},
  pages = {118-130},
  doi = {10.11648/j.ijafrm.20200503.11},
  url = {https://doi.org/10.11648/j.ijafrm.20200503.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20200503.11},
  abstract = {This study investigated the relationship between macroeconomic variables and the performance of deposit money banks in Nigeria is incited by the heated arguments of finance and economic researchers’ on whether macroeconomic variables; Gross Domestic Product rate, interest rate, inflation rate, money supply and exchange rate are or not in control of the banks’ management banking sector. Based on that, researchers in this study want to take a solid position on whether macroeconomic variables positively or negatively or of no effect on the performance of deposit money banks (DMBs) in Nigeria. The study made use of suitable finametrica tools to analyze the models. The results of the Error Correction Model and General Method Moments results that all the macroeconomic variables employed (economic growth rate, interest rate, inflation rate, money supply and exchange rate in this study have no significant relationship with bank performance. VECG ranger Causality/Block Exogeneity Wald Test observed that each and jointly, the macroeconomic variables do not cause bank performance both in the short run and long run. Again, impulse response result revealed that bank performance responds insignificantly to the shocks of all the macroeconomic variables. Consequently the researchers advocate that deposit money banks in Nigeria within herent discretionary policy be proactive to the monetary and fiscal policies of regulatory authorities in order to enhance their performance.},
 year = {2020}
}

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TY  - JOUR
T1  - Do Macroeconomic Variables Predict Deposit Money Banks’ Performance in Nigeria
AU  - Ejem Chukwu Agwu
AU  - Ogbonna Udochukwu Godfrey
AU  - Ogbulu Onyemachi Maxwell
Y1  - 2020/06/16
PY  - 2020
N1  - https://doi.org/10.11648/j.ijafrm.20200503.11
DO  - 10.11648/j.ijafrm.20200503.11
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 118
EP  - 130
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20200503.11
AB  - This study investigated the relationship between macroeconomic variables and the performance of deposit money banks in Nigeria is incited by the heated arguments of finance and economic researchers’ on whether macroeconomic variables; Gross Domestic Product rate, interest rate, inflation rate, money supply and exchange rate are or not in control of the banks’ management banking sector. Based on that, researchers in this study want to take a solid position on whether macroeconomic variables positively or negatively or of no effect on the performance of deposit money banks (DMBs) in Nigeria. The study made use of suitable finametrica tools to analyze the models. The results of the Error Correction Model and General Method Moments results that all the macroeconomic variables employed (economic growth rate, interest rate, inflation rate, money supply and exchange rate in this study have no significant relationship with bank performance. VECG ranger Causality/Block Exogeneity Wald Test observed that each and jointly, the macroeconomic variables do not cause bank performance both in the short run and long run. Again, impulse response result revealed that bank performance responds insignificantly to the shocks of all the macroeconomic variables. Consequently the researchers advocate that deposit money banks in Nigeria within herent discretionary policy be proactive to the monetary and fiscal policies of regulatory authorities in order to enhance their performance.
VL  - 5
IS  - 3
ER  -

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Author Information

Ejem Chukwu Agwu

Department of Banking and Finance, Abia State University, Uturu, Nigeria
Ogbonna Udochukwu Godfrey

Department of Management Science, Rhema University, Aba, Nigeria
Ogbulu Onyemachi Maxwell

Department of Banking and Finance, Abia State University, Uturu, Nigeria

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APA Style

Ejem Chukwu Agwu, Ogbonna Udochukwu Godfrey, Ogbulu Onyemachi Maxwell. (2020). Do Macroeconomic Variables Predict Deposit Money Banks’ Performance in Nigeria. International Journal of Accounting, Finance and Risk Management, 5(3), 118-130. https://doi.org/10.11648/j.ijafrm.20200503.11

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ACS Style

Ejem Chukwu Agwu; Ogbonna Udochukwu Godfrey; Ogbulu Onyemachi Maxwell. Do Macroeconomic Variables Predict Deposit Money Banks’ Performance in Nigeria. Int. J. Account. Finance Risk Manag. 2020, 5(3), 118-130. doi: 10.11648/j.ijafrm.20200503.11

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AMA Style

Ejem Chukwu Agwu, Ogbonna Udochukwu Godfrey, Ogbulu Onyemachi Maxwell. Do Macroeconomic Variables Predict Deposit Money Banks’ Performance in Nigeria. Int J Account Finance Risk Manag. 2020;5(3):118-130. doi: 10.11648/j.ijafrm.20200503.11

Copy | Download

@article{10.11648/j.ijafrm.20200503.11,
  author = {Ejem Chukwu Agwu and Ogbonna Udochukwu Godfrey and Ogbulu Onyemachi Maxwell},
  title = {Do Macroeconomic Variables Predict Deposit Money Banks’ Performance in Nigeria},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {5},
  number = {3},
  pages = {118-130},
  doi = {10.11648/j.ijafrm.20200503.11},
  url = {https://doi.org/10.11648/j.ijafrm.20200503.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20200503.11},
  abstract = {This study investigated the relationship between macroeconomic variables and the performance of deposit money banks in Nigeria is incited by the heated arguments of finance and economic researchers’ on whether macroeconomic variables; Gross Domestic Product rate, interest rate, inflation rate, money supply and exchange rate are or not in control of the banks’ management banking sector. Based on that, researchers in this study want to take a solid position on whether macroeconomic variables positively or negatively or of no effect on the performance of deposit money banks (DMBs) in Nigeria. The study made use of suitable finametrica tools to analyze the models. The results of the Error Correction Model and General Method Moments results that all the macroeconomic variables employed (economic growth rate, interest rate, inflation rate, money supply and exchange rate in this study have no significant relationship with bank performance. VECG ranger Causality/Block Exogeneity Wald Test observed that each and jointly, the macroeconomic variables do not cause bank performance both in the short run and long run. Again, impulse response result revealed that bank performance responds insignificantly to the shocks of all the macroeconomic variables. Consequently the researchers advocate that deposit money banks in Nigeria within herent discretionary policy be proactive to the monetary and fiscal policies of regulatory authorities in order to enhance their performance.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - Do Macroeconomic Variables Predict Deposit Money Banks’ Performance in Nigeria
AU  - Ejem Chukwu Agwu
AU  - Ogbonna Udochukwu Godfrey
AU  - Ogbulu Onyemachi Maxwell
Y1  - 2020/06/16
PY  - 2020
N1  - https://doi.org/10.11648/j.ijafrm.20200503.11
DO  - 10.11648/j.ijafrm.20200503.11
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 118
EP  - 130
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20200503.11
AB  - This study investigated the relationship between macroeconomic variables and the performance of deposit money banks in Nigeria is incited by the heated arguments of finance and economic researchers’ on whether macroeconomic variables; Gross Domestic Product rate, interest rate, inflation rate, money supply and exchange rate are or not in control of the banks’ management banking sector. Based on that, researchers in this study want to take a solid position on whether macroeconomic variables positively or negatively or of no effect on the performance of deposit money banks (DMBs) in Nigeria. The study made use of suitable finametrica tools to analyze the models. The results of the Error Correction Model and General Method Moments results that all the macroeconomic variables employed (economic growth rate, interest rate, inflation rate, money supply and exchange rate in this study have no significant relationship with bank performance. VECG ranger Causality/Block Exogeneity Wald Test observed that each and jointly, the macroeconomic variables do not cause bank performance both in the short run and long run. Again, impulse response result revealed that bank performance responds insignificantly to the shocks of all the macroeconomic variables. Consequently the researchers advocate that deposit money banks in Nigeria within herent discretionary policy be proactive to the monetary and fiscal policies of regulatory authorities in order to enhance their performance.
VL  - 5
IS  - 3
ER  -

Copy | Download