DETERMINANTS OF BANK DISTRESS: DOES INSOLVENCY MATTER?

DETERMINANTS OF BANK
DISTRESS: DOES INSOLVENCY
MATTER?
Uzoma Friday Christopher PhD
Enugu State University of Science and
Technology (ESUT)
christopher.uzoma90@gmail.com
ABSTRACT
This study is a historical survey of the effects
of Insolvency on bank distress in Nigeria. The
research population comprised banks
operating in Nigeria between 1998 and 2017.
Data used were all observational panel data
obtained from the published accounts of the
elements of the research population. A total
of 113 complete bank observations were
utilized in the study. The relationships
outlined by the data set were analyzed via
multiple regression tests. All the data for the
purpose of the study were manually
computed and then calibrated into the SPSS
regression module for extensive statistical
analysis. The result indicated that loan
quality is a significant determinant of bank
distress, while insider lending and extent of
government ownership are insignificant.
Keywords: Bank destress: Loan quality: Bank
ownership: Insider lending.

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