标题：Determinants of capital adequacy in the Banking Sub-Sector of the Nigeria Economy: Efficacy of Camels. (A Model Specification with Co-Integration Analysis)
期刊名称：International Journal of Academic Research in Business and Social Sciences
电子版ISSN：2222-6990
出版年度：2011
卷号：1
期号：3
页码：233-248
出版社：Human Resource Management Academic Research Society
摘要：This study investigates the impact of banks characteristics, financial structure and macroeconomic indicators on banks Capital base in the Nigerian banking industry. The study does not account for ratio analysis in the computation of capital adequacy but rather it examines the determinant of Capital adequacy in Nigeria during the period 1980 ¨C 2008 within an error correction framework. Co-integration technique revealed that economic indicators such as rate of inflation, real exchange rate, demand deposits, money supply, political instability, return on investment are most robust predictors of the determinants of capital adequacy in Nigeria. After the global credit crunch capital adequacy, being critical for banks, led the study to examine the relationship between bank capital base and macroeconomics variables. This implies that political stability may reduce financial distress and bankruptcy why Foreign investment will affect Banks capital in most developing economy in the period of financial crisis . However, the study also establishes that there is a negative relationship between inflation and banks capital base as inflation erode banks capital in most developing economy. This simply means that Nigerian government should regulate investment policy why banks regulators should strive to keep inflation rate at a minimum level, if possible below 5% for them to be more efficient so as to be globally competitive
关键词：Financial Distress; Macroeconomics Variables; Global Credit Crunch
