THE IMPACT OF THE SUBPRIME MORTGAGE GLOBAL FINANCIAL CRISIS ON THE LOANS AND PROFITABILITY OF NIGERIAN BANKS

Abdulrasheed Ahmed

Abstract


The Sub-prime Global Financial Crisis (SGFC) originated from the United State of America (U S) in the year 2007, but have a far reaching effects on financial sectors the world over. This study which has a longitudinal design was undertaken to assess the impact of SGFC on loans and profitability of selected Nigerian banks. The study sampled 8 banks for duration of 6 years, which were divided in to pre, during and post crisis periods of2 years each. ANOVA was used to analyze the data collected from secondary sources, while scheffe multiple rank test was conducted as a post hoc test. The study found that SGFC has not impacted on the loans and advances of the banks, while it has impacted on the profitability of the banks. The study concludes that the regulatory authorities must have step-up regulation strategies in order to mitigate the contagion impact of the financial crisis in the operating environment of the banks.

Keywords


financial crisis, loans and advances, economic environment, profitability and revenue-generating assets.

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