DETERMINANTS OF LENDING BEHAVIOR IN NIGERIAN MICROFINANCE BANKS
| dc.contributor.author | ADEMOKOYA ALADE AYODEJI | |
| dc.date.accessioned | 2024-07-31T05:58:34Z | |
| dc.date.available | 2024-07-31T05:58:34Z | |
| dc.date.issued | 2024 | |
| dc.description | The study contributed to knowledge by examining how macroeconomic, institutional, and bank-specific factors influence the lending behavior of microfinance banks in Nigeria. | |
| dc.description.abstract | Microfinance banking sector mobilize deposits from customers and extend credit to active poor and individuals who possess the capacity to direct these funds towards profitable ventures thereby, contributing to overall economic growth. The objective of this study is to examine the determinants of the lending behaviour of microfinance banks in Nigeria. This study covers all the micro-finance banks in Nigeria and hence, used aggregated data sourced from Central Bank of Nigeria (CBN) statistical bulletin and World Bank Development Index. To achieve these goals, the study adopts a quantitative research approach based on time series data and employs the auto-regressive distributed lag (ARDL) regression method for data analysis. In both the short and long run, the ARDL results highlight the significance of some macroeconomic variables. Specifically, the inflation rate which exhibits significant coefficients of (-0.049, -0.041) in both timeframes, the lending rate demonstrates significant coefficients of (-0.359, -0.055) in both the short and long run, and the exchange rate showcases a significant coefficient value of (-0.021) in the long run. Furthermore, institutional factors assume importance in shaping the lending behaviour of microfinance banks in Nigeria. Specifically, the corruption index displays a significant coefficient value of (-6.564) in the short run, while political instability reveals a significant coefficient value of (-0.573) in the long run. The regression outcomes further reveal that some bank-specific factors are instrumental in influencing the lending behaviour of microfinance banks in Nigeria. In both the short and long run, short-term investment demonstrates significant coefficients of (-0.0014, -0.0012), long-term investment exhibits significant coefficients of (-0.0024, -0.004), and in the long run, liquidity rate displays a significant coefficient value of (0.037). Study therefore, concludes that some macro-economic, institutional and bank specific factors collectively play a substantial role in influencing the lending behavior of microfinance banks in Nigeria, and recommends that in order to achieve a desirable lending behavior from microfinance institutions in Nigeria, policymakers should focus on maintaining macroeconomic stability. | |
| dc.description.sponsorship | SELF SPONSORED | |
| dc.identifier.citation | Ademokoya, A. A., Alasirin S., Arije, A. B., and Alayande, F. O. (2024): Determinants of lending behavior in Nigerian Micro-Finance banks. Malete Journal of Management and Social Sciences. 1(1): 15-30, Published by the Faculty of Management and Social Sciences, Kwara State University, Malete. Available online at https://majomss.com/wp-content/uploads/2024/07/2-DETERMINANTS-OF-LENDING-BEHAVIOR-IN-NIGERIAN-MICROFINANCE-BANKS.pdf | |
| dc.identifier.issn | 1119-2682 | |
| dc.identifier.uri | https://kwasuspace.kwasu.edu.ng/handle/123456789/2057 | |
| dc.language.iso | en | |
| dc.publisher | FACULTY OF MANAGEMENT AND SOCIAL SCIENCES KWARA STATE UNIUVERSITY, MALETE | |
| dc.relation.ispartofseries | 1; 1 | |
| dc.title | DETERMINANTS OF LENDING BEHAVIOR IN NIGERIAN MICROFINANCE BANKS | |
| dc.type | Article |