Open Access. Powered by Scholars. Published by Universities.®

Income Distribution Commons

Open Access. Powered by Scholars. Published by Universities.®

Business

PDF

Journal

Elections

Articles 1 - 1 of 1

Full-Text Articles in Income Distribution

Bank Loan Loss Provisioning During Election Years In Nigeria, Peterson Kitakogelu Ozili Mar 2020

Bank Loan Loss Provisioning During Election Years In Nigeria, Peterson Kitakogelu Ozili

Bullion

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.