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Pandemic Lockdown Indices and the Banking Sector in Nigeria

Umenzekwe, Peace C., Chukwuemeka, Jessica N., Uchegbu, Callista U., Ezenwafor, Joy N., Okonewa, Onyinyechukwu

Abstract

This study evaluated the effect of Covid-19 pandemic lockdown on the financial performance of selected banks in Nigeria. The annual reports of three banks were used for the study, for 2019 and 2020 and the data collected was analyzed using Descriptive statistics. The hypotheses formulated were tested using R-square method of multiple regression. The results of the analysis showed that there was a significant effect of Loan to Deposit, Capital Adequacy Ratio and Return on Assets. The study therefore concluded that the COVID -19 pandemic lockdown had a significant effect on the performance of the selected banks for the years understudied. In line with these findings, the following recommendations were made, the banking sector should closely monitor their capital adequacy ratios and ensure they maintain a healthy shield above regulatory requirements. This might involve adjusting dividend payouts, raising additional capital, or optimizing asset allocation to minimize risk, also banks should consider implementing dynamic LDR management strategies adapted to the surfacing post-pandemic economic landscape, in other to balance lending activities with deposit mobilization to maintain adequate liquidity throughout potential future economic disruptions.

Keywords

Pandemic lockdownLoan to DepositCapital Adequacy RatioReturn on Assets

References

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