Munich Personal RePEc Archive

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

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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.

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