The impact of risk governance and capital requirement on bank stability in Nigeria

This study investigates the impact of risk governance and capital requirement on bank stability in Nigeria. The data was obtained through collection of 214 company-year observations for the period of 2006-2017, which coincided with the implementation of the code of governance for banks. It covers el...

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Main Author:	David, Fajembola Olusola
Format:	Thesis
Language:	eng eng
Published:	2020
Subjects:	HD28-70 Management Industrial Management HD61 Risk Management
Online Access:	https://etd.uum.edu.my/10312/1/permission%20to%20deposit-grant%20the%20permission-900250.pdf https://etd.uum.edu.my/10312/2/s900250_01.pdf
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id	my-uum-etd.10312
record_format	uketd_dc
spelling	my-uum-etd.103122023-02-12T07:58:38Z The impact of risk governance and capital requirement on bank stability in Nigeria 2020 David, Fajembola Olusola Abdul Rahman, Nora Azureen Md Rus, Rohani School of Economics, Finance & Banking School of Economics, Finance and Banking HD28-70 Management. Industrial Management HD61 Risk Management This study investigates the impact of risk governance and capital requirement on bank stability in Nigeria. The data was obtained through collection of 214 company-year observations for the period of 2006-2017, which coincided with the implementation of the code of governance for banks. It covers eleven years after the issuance of the code of governance. All deposit money banks in Nigeria were used as samples for the study. Bank stability was measured by Z-Score, risk governance attributes by the risk management committee (RMC), audit committee (AC) and the board of director; while capital requirement ratio (CARR) was measured by capital adequacy. Besides that, capital requirement ratio was also considered as the measurement for the external governance. By using the multiple regression analysis, results revealed that with respect to the RMC, only the size has positive and significant relationship with bank stability. Similarly, for the AC, only the expertise has significant relationship and positively affect bank stability; meanwhile for board structure, the only positive attribute was gender. Also, results showed that the board and its risk governance committees did not effectively promote bank stability in Nigeria. However, results revealed that capital requirement had a significant positive relationship with bank stability, thus suggesting that CARR is an important external mechanism especially for banking sector. Moreover, risk governance practices in the Nigerian banking industry have low influence on bank stability. The findings showed the weaknesses in the central bank supervision of banks, which contributed to the slack in internal governance. The policy implications arising from these findings suggested a review of the code of governance to strengthen the central bank’s supervision, increase the number of women on the boards and legal reforms to strengthen the courts on the enforcement of the codes. 2020 Thesis https://etd.uum.edu.my/10312/ https://etd.uum.edu.my/10312/1/permission%20to%20deposit-grant%20the%20permission-900250.pdf text eng staffonly https://etd.uum.edu.my/10312/2/s900250_01.pdf text eng public other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Abdul Rahman, Nora Azureen Md Rus, Rohani
topic	HD28-70 Management Industrial Management HD61 Risk Management
spellingShingle	HD28-70 Management Industrial Management HD61 Risk Management David, Fajembola Olusola The impact of risk governance and capital requirement on bank stability in Nigeria
description	This study investigates the impact of risk governance and capital requirement on bank stability in Nigeria. The data was obtained through collection of 214 company-year observations for the period of 2006-2017, which coincided with the implementation of the code of governance for banks. It covers eleven years after the issuance of the code of governance. All deposit money banks in Nigeria were used as samples for the study. Bank stability was measured by Z-Score, risk governance attributes by the risk management committee (RMC), audit committee (AC) and the board of director; while capital requirement ratio (CARR) was measured by capital adequacy. Besides that, capital requirement ratio was also considered as the measurement for the external governance. By using the multiple regression analysis, results revealed that with respect to the RMC, only the size has positive and significant relationship with bank stability. Similarly, for the AC, only the expertise has significant relationship and positively affect bank stability; meanwhile for board structure, the only positive attribute was gender. Also, results showed that the board and its risk governance committees did not effectively promote bank stability in Nigeria. However, results revealed that capital requirement had a significant positive relationship with bank stability, thus suggesting that CARR is an important external mechanism especially for banking sector. Moreover, risk governance practices in the Nigerian banking industry have low influence on bank stability. The findings showed the weaknesses in the central bank supervision of banks, which contributed to the slack in internal governance. The policy implications arising from these findings suggested a review of the code of governance to strengthen the central bank’s supervision, increase the number of women on the boards and legal reforms to strengthen the courts on the enforcement of the codes.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	David, Fajembola Olusola
author_facet	David, Fajembola Olusola
author_sort	David, Fajembola Olusola
title	The impact of risk governance and capital requirement on bank stability in Nigeria
title_short	The impact of risk governance and capital requirement on bank stability in Nigeria
title_full	The impact of risk governance and capital requirement on bank stability in Nigeria
title_fullStr	The impact of risk governance and capital requirement on bank stability in Nigeria
title_full_unstemmed	The impact of risk governance and capital requirement on bank stability in Nigeria
title_sort	impact of risk governance and capital requirement on bank stability in nigeria
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2020
url	https://etd.uum.edu.my/10312/1/permission%20to%20deposit-grant%20the%20permission-900250.pdf https://etd.uum.edu.my/10312/2/s900250_01.pdf
_version_	1776103788328779776

The impact of risk governance and capital requirement on bank stability in Nigeria

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