Bank loan loss provisioning during election years in Nigeria

Ozili, Peterson K (2019): Bank loan loss provisioning during election years in Nigeria. Forthcoming in: The CBN Bullion

Abstract

The paper investigates the behavior of loan loss provisions during election years in Nigeria. Election events create uncertainties in the business environment in Nigeria which can increase the credit risk that banks face. The findings reveal that the banking sector had high loan loss provisions when it is under-capitalised during election years. However, the election year did not have a significant effect on the level of loan loss provisions in the Nigerian banking sector.

• Item Type: MPRA Paper
• Language: English
• Keywords: loan loss provisions; income smoothing; election; Nigeria, banks, financial reporting, credit risk
• Subjects: G - Financial Economics > G0 - General > G01 - Financial Crises; G - Financial Economics > G1 - General Financial Markets > G18 - Government Policy and Regulation; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M2 - Business Economics > M21 - Business Economics

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