Determinants of Bank Profitability in Nigeria: Using Camel Rating Model (2001 – 2010)

Abstract

Sound financial environment of the banking industry is the guarantee not only to her depositors but equally significant to the shareholders, employees and the whole economy as well.In line to this, efforts have been made from time to time to measure the performance of banks in the country.A number of factors are used in the measurement of banks performance in a typical developing economy and among these is profitability.This study was based on the determinants of banks profitability in Nigeria: using CAMEL model.The objective of the study was to determine the impact of CAMEL on the profitability of Nigerian banks.The data of the commercial banks in Nigeria were obtained for the period of 2001 to 2010.The model was estimated using ordinary least square method and the Statistical Package for Social Sciences (SPSS) 19.The findings based on the analysis elucidate that liquidity has a significant impact on banks profitability while capital adequacy, assets quality, management efficiency, earning did not.It was then recommended that banks should make sure that they maintain a reasonable liquidity position at all times to meet up regular financial obligations thereby maintaining depositors' confidence in the industry and increase profitability.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 35 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.