Nexus of bank personnel and cost-income ratio (CIR) in Nigeria
Journal: Banks and bank systems [electronic resource] (Vol.12, No. 4)Publication Date: 2017-12-26
Authors : Odunayo Magret Olarewaju; Olusola Olawale Olarewaju; Titilayo Moromoke Oladejo; Stephen Oseko Migiro;
Page : 154-162
Keywords : cost-income ratio (CIR); Granger causality; Nigeria banking sector; personnel ratio;
Abstract
This study investigates the causal relationship between bank personnel ratio and the cost-income ratio based on performance in Nigeria for the period of 2004β2015. Secondary data collected on a cross section of 15 banks during this period was analyzed using panel unit root, cointegration and Granger causality techniques. A unit root test revealed that the variables are stationary at order one. The result further shows there is an equilibrium relationship or stability in the short and long run; furthermore, there is a bidirectional causal relationship between personnel ratio and cost-income ratio. Therefore, the study recommends that the apex bank should enforce policies in the banking sector that will minimize the unit cost of operation β even though they might hire more staff. This is to enhance the stability of the banks in Nigeria and to avoid any threat to their continuity.
Other Latest Articles
- POSSIBILITIES OF WAVE PUMPS USE IN WATER AND ENERGY MANAGEMENT OF SEASIDE REGIONS
- Money supply. Endogenous or exogenous variable? With reference to Iraq
- ASSESSMENT OF THE FLUSHING LEVEL OF SALTED SOILS IN THE RICE SYSTEMS WITH COMPLICATED HYDROGEOLOGICAL CONDITIONS
- An investigation into the best approach to the implementation of Basel II in Swaziland
- Accounting of non-performing long-term bank loans in Ukraine
Last modified: 2018-03-15 18:42:22