scholarly journals Determinants of Bank Lending in Nigeria

2020 ◽  
Vol 12 (3) ◽  
pp. 378-398
Author(s):  
Adeola Y. Oyebowale
Keyword(s):  
Granger Causality ◽  
Commercial Banks ◽  
Bank Lending ◽  
Capital Adequacy ◽  
Annual Data ◽  
Bank Capital ◽  
Bounds Testing ◽  
Causality Tests ◽  
Granger Causality Tests ◽  
The Impact

The willingness of commercial banks to provide loans is determined by various factors. In this regard, this paper provides empirical evidence on determinants of bank lending in Nigeria. The parsimonious model of this study investigates the impact of growth in loan-to-deposit ratio, growth in inflation, growth in broad money, and growth in bank capital on growth in bank lending using annual data from 1961 to 2016. This study adopts the autoregressive distributed lag (ARDL) bounds testing approach and Granger causality tests to investigate the relationship and direction of causality among the variables, respectively. The Granger causality tests show that growth in broad money Granger-causes growth in bank lending, while there is no causality from other explanatory variables to bank lending in Nigeria. Also, this study shows that growth in bank lending Granger-causes growth in loan-to-deposit ratio and growth in inflation in Nigeria. Thus, this paper argues that commercial banks in Nigeria exhibit stern concern for their liquidity and capital adequacy positions while acting as financial intermediaries. Additionally, this paper argues that the Central Bank of Nigeria (CBN) possesses “paper-based” independence.

scholarly journals Innovative Development of the Agricultural Sector in the Visegrad Group Countries

2021 ◽  
Vol 14 (1) ◽  
pp. 1-13
Author(s):  
Anastasiia Burdiuzha
Keyword(s):  
Granger Causality ◽  
Agricultural Sector ◽  
Value Added ◽  
Innovation Activity ◽  
European Patent ◽  
Innovative Development ◽  
Causality Tests ◽  
Granger Causality Tests ◽  
The Impact ◽  
Visegrad Group

Abstract Subject and purpose of work: Analysis of the innovative development trends of the agricultural sector in the Visegrad Group countries in 1995–2019. Investigation of the impact of innovation on value added to GDP by the sector and the patent activity. Materials and methods: Secondary data used in the current research were taken from Eurostat, World Bank and European Patent Office databases. They were analyzed by applying OLS models and Granger causality tests. Results: First, composition of R&D expenses in each Visegrad country was examined. Then its relationship to agricultural GDP and the number of the patents granted was tested by means of OLS models. Forecasting the relationship between variables examined was carried out by running Granger causality tests. Conclusions: There was a constant growth in agricultural innovation activity investment from 1995 to 2019. Nevertheless, the countries examined have not yet reached the EU’s objective concerning the R&D intensities. Innovation activity had a positive impact on the value added to GDP by agriculture and on the number of the patents granted.

Bank lending and housing prices in Sweden

2018 ◽  
Vol 11 (3) ◽  
pp. 498-519 ◽  
Author(s):  
Peter Öhman ◽  
Darush Yazdanfar
Keyword(s):  
Granger Causality ◽  
Time Series Data ◽  
Housing Prices ◽  
Consumer Price Index ◽  
Bank Lending ◽  
Causal Link ◽  
Series Data ◽  
Content Type ◽  
Causality Tests ◽  
Granger Causality Tests

Purpose The purpose of this study is to investigate the Granger causal link between bank lending and housing prices. Design/methodology/approach Several econometric methods, including Granger causality tests based on a vector error correction model, were applied to analyse monthly time series data in the Swedish context. The data cover bank lending, apartment prices, villa prices, mortgage rates and the consumer price index from September 2005 to October 2013. Findings The results indicate that bank lending and housing prices are cointegrated. According to Granger causality tests, bidirectional relationships exist between bank lending and each of apartment and villa prices, confirming the financial accelerator mechanism. However, earlier shocks arising from housing prices themselves account for the greatest variation in future prices. Originality/value To the authors’ knowledge, this study represents the first analysis of the causal link between bank lending and the housing market in terms of apartment and villa prices in the Swedish context.

TOURISM AND GROWTH IN SINGAPORE: NEW EXTENSION FROM BOUNDS TEST TO LEVEL RELATIONSHIPS AND CONDITIONAL GRANGER CAUSALITY TESTS

2011 ◽  
Vol 56 (03) ◽  
pp. 441-453 ◽  
Author(s):  
SALIH TURAN KATIRCIOǦLU
Keyword(s):  
Granger Causality ◽  
Real Income ◽  
Income Growth ◽  
Annual Data ◽  
Equilibrium Relationship ◽  
Equilibrium Level ◽  
Causality Tests ◽  
Granger Causality Tests ◽  
Bounds Test

This paper empirically investigates the tourism-led growth (TLG) hypothesis in the case of Singapore by employing the bounds test to cointegration, error correction models and Granger causality tests using annual data from 1960 to 2007. Results confirm the existence of long-term equilibrium relationship between international tourism and economic growth in the case of Singapore; real income growth converges to its long-term equilibrium level significantly by 51.4% in the TLG model. The major finding of this study is that the TLG hypothesis is confirmed for the Singaporean economy in the long-term as a result of conditional Granger causality tests.

scholarly journals Do Exports lead Economic Output in Five Asian Countries? A Cointegration and Granger Causality Analysis

2016 ◽  
Vol 6 (2) ◽  
pp. 30
Author(s):  
Jiayi Huang ◽  
Miguel D. Ramirez
Keyword(s):  
Granger Causality ◽  
The Philippines ◽  
Cointegration Analysis ◽  
Annual Data ◽  
Data Set ◽  
Economic Output ◽  
Long Run ◽  
Cointegration Tests ◽  
Causality Tests ◽  
Granger Causality Tests

This paper examines the relationship between exports and economic output for five major Asian economies using annual data in an expanded data set and employing unit root and cointegration analysis. It employs a Vector Error Correction Model (VECM) that treats all variables in the modified production function as potentially endogenous and then determines via weak exogeneity tests whether some of the key variables can be treated as exogenous (omitted from the system). Johansen cointegration tests find a positive long-run relationship between exports and economic output for the Philippines, Singapore, and Thailand. Cointegration tests find a negative long-run relationship between exports and economic output for India. The Block Granger causality tests and impulse response functions for the Philippines and Singapore find stronger causality from exports to economic output rather than the reverse. Granger causality tests in level form also find significant causality from exports to economic output. No causality exists between exports and economic output in the case of India. Exports seem to promote economic growth in three of the four countries that have cointegrated data, which supports the exports-led growth hypothesis found in some of the extant literature. The paper does not find cointegration for China because the variables are integrated of different orders from I(0) to I(2). 

Population composition and financial markets: evidence from Japan

2018 ◽  
Vol 35 (4) ◽  
pp. 505-524
Author(s):  
Hiroyuki Kawakatsu ◽  
Mikiko Oliver
Keyword(s):  
Financial Markets ◽  
Granger Causality ◽  
Annual Data ◽  
Population Composition ◽  
Content Type ◽  
Long Run ◽  
Causality Tests ◽  
Granger Causality Tests ◽  
Market Variables ◽  
Post War

Purpose This study aims to examine the relation between population composition and financial market variables in post-war Japan. Design/methodology/approach Cointegration and Granger causality tests are applied to annual data for the period 1948-2015. Findings Accounting for nonstationarity, this study finds long-run equilibrium relations between real financial price (stock and house) indices and the proportion of population in the prime earning (45-64) or retirement (65+) age. Granger causality tests that account for possibly nonstationary variables find some evidence of dynamic causation running from the 45-64 cohort to the real financial price indices. No such evidence is found for the 65+ cohort. Originality/value This study complements the existing literature primarily based on US data with analysis of Japanese data that has some unique population composition features.

scholarly journals Assessing the Impact of Bank Concentration and Liquidity of Refah Bank Branches on Profitability during the Period1383-190

2014 ◽  
Vol 4 (1) ◽  
pp. 248
Author(s):  
Hossin Ostadi ◽  
Nastran Monsef
Keyword(s):  
Commercial Banks ◽  
Bank Capital ◽  
Factors Affecting ◽  
Bank Branches ◽  
Independent Variables ◽  
Bank Deposits ◽  
The Impact ◽  
Bank Concentration ◽  
Research Period

Profitability is an important factor to show this articledoeswhat is the role of the intermediary bank to collect your savings and allocation of loans.  Given the importance of profitability indicators in this study, the factors affecting the profitability of commercial banks in Iranare analyzedwith emphasis on the degree of centralization and bank deposits. Dependent variable is indicators of profitability (ROE, ROA) and bank deposits, bank size, bank capital, focus on liquidity and banking requirements are independent variables. Correlation analysis and OLS regression are used and the research period is 1381 to 1390 that the country's territory where bank branches.Our results indicate that the effect of bank size on profitability is positive and the increase in bank size on profitability is increased. Impact on the profitability of bank deposits is positive, ie increasing the profitability of bank deposits increased. Finally, the impact of bank concentration on profitability is positive. Increasing the bank's focus profitability increases. Moreover, the results adversely affect the liquidity of the index is profit. 

scholarly journals Do Operating Profits Induce a Wage Premium Equally Shared among Employees Earning High or Low Incomes?

Economies ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 81
Author(s):  
Jarle Aarstad ◽  
Olav A. Kvitastein
Keyword(s):  
Panel Data ◽  
Granger Causality ◽  
Wage Inequality ◽  
Wage Premium ◽  
Wage Increase ◽  
Low Incomes ◽  
Causality Tests ◽  
Granger Causality Tests

Panel data show that between 2001 and 2014 Norwegian industries’ increasing aggregated operating profits per employee increased average wages and wage inequality. The data imply that increasing profits, perhaps unsurprisingly, induce a wage premium. The data further imply that employees earning high incomes at the outset had the highest wage increase percentage-wise. Decreasing operating profits per employee had opposite but less robust effects on average wages and wage inequality. Panel data Granger causality tests finally showed that average wages, but not wage inequality, reversely and positively affect operating profits per employee.

scholarly journals Does the target market affect bank performance? Evidence from the geographic diversification of city commercial banks in China

2021 ◽  
Vol 15 (1) ◽  
Author(s):  
Xiaonan Li ◽  
Chang Song
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Capital Adequacy ◽  
Bank Performance ◽  
Chinese Government ◽  
Target Market ◽  
Geographic Diversification ◽  
Cross Sectional ◽  
The Impact ◽  
Geographical Diversification

AbstractAfter the opening up of the banking sector to domestic and foreign capitals which is approved by the Chinese government, the China Banking Regulatory Commission (CBRC) has permitted city commercial banks to diversify geographically. Since this deregulation in 2006, city commercial banks began to geographically diversify to occupy the market and acquire more financial resources. To examine the causal relationship between geographical diversification and bank performance, we construct an exogenous geographical diversification instrument using the gravity-deregulation model and a policy shock. We find that bank geographical diversification negatively affects bank performance. Moreover, we conduct some mechanism tests in the Chinese context. We find that the target market with several large- and medium-sized banks and a high level of local protectionism in the target market decreases the performance of city commercial banks. Finally, cross-sectional analyses show that the impact of geographical diversification on banks’ performance is more notable among city commercial banks that are younger, and have a lower capital adequacy ratio and a higher non-performing loan ratio.

Sign in / Sign up

Export Citation Format

Share Document