Predicting predictive accuracy :||performance of fixed-weight decision models compared to ordinary least squares regression

2013 ◽  
Author(s):  
Nicholas Robert Brown
Author(s):  
Oluwarotimi Ayokunnu Owolabi ◽  
Ibukun Omoshola Fayemi

This study explores the effect of selected interest rate determinants and their significance on the performance of Deposit money banks in Nigeria, and whether the determinants are significantly different between High performance and low performance periods, over the period of 1998 to 2015. Multivariate ordinary least squares regression and paired samples t-test were employed in performing the study. The findings of Multivariate ordinary least squares regression revealed that exchange rate has a positive and statistically significant effect on deposit money bank performance, Monetary policy rate and Credit Risk have a negative and statistically significant effect on deposit money bank performance , while Inflation rate and savings deposit rate have a statistically insignificant effect on deposit money bank performance. Results of paired samples t-test revealed significant difference in means of determinants. The study recommends Naira devaluation and reduction of monetary policy rate amongst other recommendations to boost bank performance in Nigeria


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