IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 10 NO. 1 2024
DOI: https://doi.org/10.56201/ijbfr.v10.no1.2024.pg128.140

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Effects of Time Deposit and Bank Loans on the Financial Performance of Microfinance Banks in Nigeria

Obim, Edim Ndifon and Prof Ezeudu, Jude Ikenna

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Abstract

The purpose of the study was effect of time deposit and bank loans on the financial performance of microfinance banks in Nigeria. The specific objectives were to: investigate the effect of time deposits on the financial performance (ROA) of microfinance banks in Nigeria; ascertain the effect of microfinance bank loans on the financial performance (ROA) of microfinance banks in Nigeria; assess the effect of real interest rate on the financial performance (ROA) of microfinance banks in Nigeria; and examine the effect of gross capital formation on the financial performance (ROA) of microfinance banks in Nigeria. This study utilized the exploratory research design to empirically analyze the effects of deposit mobilization on the financial performance of microfinance banks in Nigeria. Secondary data, time-series and cross-sectional data were used in the study. Data for the study were gathered from annual reports of various microfinance banks in the selected states in Nigeria, as well as institutional sources like the CBN statistical bulletins, and the NDIC reports and records. Panel data analysis was employed in the study. From the result of these analyses, the findings are summarized as follows:

keywords:

Deposit mobilization, time deposits, microfinance bank loans, real interest rate, gross capital formation, financial performance, ROA

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References:

Acha, I. J. A. (2012). Microfinance banking in Nigeria: Problems and prospects. International
Journal of Finance and Accounting, 1(5), 27-32.

Agene, C. A. (2002). Microfinance banking: Principles and practice. Ibadan: Daily Graphics.

Akuma, J., Doku, I. & Awer, N, (2017). Credit risk, deposit mobilization and profitability of
Ghanaian banks. International Journal of Economics and Financial Issues, 7(5), 394-
399.

Andinet, M. (2016). Linkages between SMEs and large industries for increased markets and
trades: An African perspective.

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