Logo
Munich Personal RePEc Archive

Determinants of Bank Profitability and Basel Capital Regulation: Empirical Evidence from Nigeria

Ozili, Peterson K (2015): Determinants of Bank Profitability and Basel Capital Regulation: Empirical Evidence from Nigeria.

Warning
There is a more recent version of this item available.
[thumbnail of MPRA_paper_61048.pdf]
Preview
PDF
MPRA_paper_61048.pdf

Download (284kB) | Preview

Abstract

This study, empirically, investigates the determinants of bank profitability. After including the regulatory variable into the model, I find no significant difference in bank profitability during pre-and post-capital regulation regime. Second, after employing NIM and ROA profitability metrics, I find that the determinants of bank profitability, and its significance, depends on the profitability metric employed. Third, I find that asset quality is a strong determinant of bank interest margin, relative to return on asset. Also, I observe that economies of scale and scope enables larger banks to be profitable (ROA) relative to smaller banks. Overall, the insignificant effect of Basel capital regime on bank profitability seems to suggest that such regulation might not be aimed at decreasing bank profits.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.