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MULTINATIONAL BANKING AND VALUE ADDED TO THE BANK, BANKING SYSTEM, CUSTOMERS AND SHAREHOLDER

Adewunmi, J. and Adetiloye, K. A. (2017) MULTINATIONAL BANKING AND VALUE ADDED TO THE BANK, BANKING SYSTEM, CUSTOMERS AND SHAREHOLDER. In: CUCEN 2017, Covenant University, Ota.

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Abstract

The banking system is one of the major drivers of the financial system of any economy. Therefore, development of the banking system is vital to economic growth and development, and the banking system develops through the activities of the banks. Thus, the major objective of this study is to look at the value banks add to itself, the banking system, the customers and shareholders. Panel data and questionnaires were used in carrying out the research on five top multinational banks in Nigeria. Results of the panel data analysis using random effect regression results also shows that both total equity and customer’s deposits significantly improve profit before tax of the selected deposit money banks in Nigeria. However, the bank’s investment in their subsidiaries exposed them to greater risk and possibility of decline in their profit before tax. Results of the secondary data shows that multinational banks significantly add value to the bank, banking system, the customers and the shareholders. Based on the of the random effect regression analysis, we recommend that the banks look into its investment in subsidiaries because it adversely affects profit after tax, the banks are advised to look into externalities that may affect investment in subsidiaries. Regulatory body should also bring up policies that would encourage the banks to go multinational, because multinational banking helps the banking system of a country and therefore grows and develops the financial system.

Item Type: Conference or Workshop Item (Paper)
Subjects: H Social Sciences > HJ Public Finance
Divisions: Faculty of Law, Arts and Social Sciences > School of Management
Depositing User: Mr Adewole Adewumi
Date Deposited: 05 Mar 2018 18:27
Last Modified: 05 Mar 2018 18:27
URI: http://eprints.covenantuniversity.edu.ng/id/eprint/10325

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