•  
  •  
 

Bullion

Keywords

Loan loss provisions, Income smoothing, Elections, Nigerian banks, Banking

Abstract

The paper investigates the behavior of loan loss provisions during election years in Nigeria. Election events create uncertainties in the business environment. Election and post-election events may amplify credit risks for banks, requiring banks to keep higher loan loss provisions. Using country-level data, it was revealed that the election year did not have a significant effect on the level of loan loss provisions in the Nigerian banking sector. However, the banking sector had high provisions when it is undercapitalized during election years.

Author Bio

Dr. Ozili is a staff of Banking Supervision Department of the Central Bank of Nigeria

Publication Title

Bullion

Issue

1

Volume

44

Download
COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.