COVID-19 pandemic and the performance of financial firms in Nigeria
Keywords:
capital adequacy, COVID-19, financial performance, Nigerian banks, pandemicAbstract
The impact of the COVID-19 pandemic on the performance and capital adequacy of Nigerian banks is explored in this article. The aim of the study was to see how the virus outbreak affects the performance and capital adequacy of Nigerian banks. For the purposes of this study, an actual post-research budget was used. The number of confirmed positive cases in Nigeria since 2020 is used as an indicator of the virus, with capital adequacy measured by capital adequacy ratio (CAR) and bank financial performance measured by the performance of assets (ROA). In one model, positive cases of the Covid virus were linked to the banks' CAR, while in the other, positive Covid cases were linked to the banks' ROA. Secondary statistics are included in CBN's annual report for the year ended 2020, to be released in 2021. Conventional least squares (OLS) regression estimates were used to analyze the data. . According to the results, the Covid pandemic has had a positive and significant effect on the capital adequacy of Nigerian banks. This can be seen in CBN’s announcement of a higher equity level for 2020 of 15.2%, up from 14.6% in 2019
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