EMPIRICAL DETERMINANTS OF BANK DISTRESS IN NIGERIA

EMPIRICAL DETERMINANTS OF BANK DISTRESS IN NIGERIA

ABSTRACT

This study was a historical survey of determinants of bank distress in Nigeria. The research population comprised banks operating in Nigeria between 1998 and 2004. Data used in the stud y 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 researcher visited the Nigerian Deposit Insurance Corporation (NDIC), the Central Bank of Nigeria (CBN), the Chartered Institute of Bankers of Nigeria (CIBN) and the Financial Institutions Training Centre (FITC) to obtain the data utilized in the study. The relationships outlined by the data set were empirically 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 empirical results indicated that loan quality is a significant determinant of bank distress in Nigeria, while insider lending and extent of government ownership are insignificant.