The effect of predatory borrowers and delinquent loans on shareholders Department:Banking and Finance By: Timmyreign101 Project ID: 8251 Rating: (3.3) votes: 6 Price:₦3000 Get the Complete MaterialAbstractThe study examined the effect of predatory borrowers and delinquent loans on shareholders’ wealth maximization objectives of Nigerian deposit banks. The study specifically examined the effect of bad debt, total credits and lending interest rates on the return on equity of deposit money banks in Nigeria. Predatory borrower and delinquent loans were proxied with bad debt, total credits, and lending interest rate, while the shareholders’ wealth maximization was proxied using returns on equity of the deposit money banks. Secondary time series data for the period 2012 to 2021 were sourced from the Center Bank of Nigeria Statistical Bulletin and the Nigeria Deposit Insurance Corporation Annual Report. The data were estimated using ordinary least squares (OLS) regression analysis. The study revealed that both total credits as well as lending interest rates maintain positive relationships with shareholders’ wealth maximization as proxied by returns on equity of the deposit money banks, while bad debts have a strong negative effect on returns on equity of the deposit money banks. The study concluded predatory borrowing and delinquent loans has a significant effect on shareholders’ wealth maximization of deposit money banks in Nigeria between the periods under study. The study recommends that deposit money banks should put in place strong mechanisms for reducing and minimizing the incidence of bad debt, ensure a sound credit management policy, and grant loans with a moderate and affordable interest rate to avoid delinquent loans. Keywords: Predatory, Delinquent, Debt, Loan, interest ...Preview Download Preview +Other Banking and Finance project topics and materials you might be interested in»The role of central bank of Nigeria (CBN) in the development of Nigeria financial sector»Appraisal of the economic implication of electronic banking in Nigerian banks (A case study of diamond bank)»The impact of strategic planning on banks performance in Nigeria (A case study of united bank for Africa plc)»Evaluation of the impact of liquidity management on banks performance in Nigeria ( A case study of UBA )»The roles of central bank of Nigeria in the prevention of bank failure or liquidation (A case study of central bank of Nigeria 2005-2009)»The role of financial institutions in promoting banking habit and saving capital formation in Nigeria»The effect of electronic banking on fraud reduction in bank (A case study of access bank plc)»The effectiveness of monetary policy measures in controlling inflation in Nigeria»Problems and challenges facing finance houses in the Nigerian economy ( A case study of mortgage bank owerri )»The role of deposit money bank in Nigeria in economy development in Nigeria - a case study of Access Bank Plc»Motivation as a way of reducing fraud in banking industry ( A case study of UBA and Fidelity bank )»Identification and management of bad debts in Nigeria commercial banks(A case study of UBA plc)»The impact of insurance industry on the economic growth of Nigeria (A case study of nicon and hallmark insurance companies 2005-2009)»The contribution and effect of computer to modern day banking in Nigeria (A case study of zenith bank and first bank plc)»The use of accounting information in assessing control and performance in an organization (A case study of first bank of Nigeria owerri)