The Exchange Rate Risk and Financial Sector Performance: Evidence from Nigeria

This article looked at the connection between exchange rate risk and financial sector performance in Nigeria using time series data from 2008Q1 to 20017Q4. The study employed Autoregressive Conditional Heteroskedasticity (ARCH), and Granger Causality tests as estimation techniques. Financial intermediation index was used as the dependent variable while risk from exchange rate, risk from consumer price index and risk from interest rate were used as the independent variables. The findings from the study showed that exchange rate risk (EXR) coefficient value was -0.276230 with p-value of 0.0000, implying that EXR was negative and significant to influence FII. The risk from financial intermediation index reveals a coefficient value of -5.213590 and the p-value of 0.000 implying that when financial intermediation index increases, volatility or risk reduces which means that financial intermediation index was not a risky variable which was significant during the study period. However, the study concluded that the shock from exchange rate moves at a negative and significant direction to financial intermediation index of the economy. It is also concluded that exchange rate and financial intermediation index does not have uni or bi-directional relationships between each other. It is recommended that the Government and the Apex Bank of Nigeria are encouraged to increase the stabilization measurement for exchange rate to cushion its risk and by so doing; this could improve financial sector performance

Assessment of Bank Technology Machine and Mobile Banking as Market Strategies to Raising Performance of Banks in Nigeria

The market challenge in form of increasing competition for success in the banking sector calls for market strategies that are customer- based towards raising the performance of Nigerian banks. The use by banks, of Automated Teller Machines and Mobile banking are at the centre stage of this market strategy. Existing knowledge on this aspect of marketing is inadequate. This study assessed the empirical effects of Automated Teller Machine and Mobile banking as marketing tools on return on equity of banks in Nigeria. Both primary and secondary data were used in the study. The data were fitted to Panel regression models of Fixed and Random effects. Findings support increasing distribution of Teller machines and raising awareness on Mobile banking as result-oriented marketing strategy for banks

Evaluating Branching and Sales Point Banking as Market Strategies to Raising Performance of Banks in Nigeria

A prerequisite in a competitive market environment is a result-oriented market strategies that are customer service oriented. Good service delivery channels have been considered as relevant in this regard. This study evaluates the effect of spread of bank branches and utilization of e-payment system in form of sales point banking on return on equity of banks. Banks in Nigeria were sampled and both primary and secondary data were used. Findings from Panel regression model estimate show a strong support for more branch establishment as a relevant market channel to increase performance of banks. Sales point banking do not have significant effect on return on equity. The findings suggest the need for banks to target the geographical spread of customers and make adequate provision for more bank branches. The expected advantage of proximity is duly linked to increasing performance of banks in Nigeria. Keywords: Market Strategy, Bank Branch, Sales Point Banking, Return on Equity DOI: 10.7176/EJBM/13-3-11 Publication date: January 31st 202

Impact of Strategic Relationship Marketing on the Performance of Banks in Nigeria

The increasing patronage of non-bank institutions by customers exerts marketing pressure on the Nigerian commercial banks. Existing studies have not adequately addressed the gap created by this paradigm shift, hence the call for business philosophy that focuses on strategic relationship marketing (SRM) approach with the customers. Therefore, this study examines the influence of the SRM dimensions on customer retention of banks in Nigeria. The sample comprised 1500 commercial bank customers and marketing officers from 300 bank branches in Nigeria. Structured questionnaires were administered for data collection. Hierarchical regression model was fitted to the data collected. The findings revealed that strategic relationship marketing dimensions could lead to increased customer retention with adequate implementation of relationship acquisition strategy, and retention strategy. Further, inclusion of banking industry alignment strategy would make the banks to benefit maximally through customer linkage and also cause an optimal compensation or remedial system. The findings stressed the need for relationship acquisition, relationship maintenance and retention strategy as the strategic marketing tool to enhance customer retention of the banks. Keywords: strategic relationship, marketing, customer retention, banking industry alignment, banks DOI: 10.7176/JMCR/74-03 Publication date: December 31st 2020

Reinsurance Activities and Sustainability of Insurance Firms in Nigeria

The study assessed the impact of reinsurance activities on the sustainability of insurance firms in Nigeria. Specifically, the study examined the effect of reinsurance expenses on profit after tax and return on asset of selected insurance firms in Nigeria and also analysed the effect of reinsurance ceded ratio on profit after tax and return on asset. The study focused on five randomly selected insurance firms over the period of five years spanning from 2013 to 2017. Data were collected from the annual report of the sampled firms and analyses were conducted using pooled OLS, fixed effect and random effect estimation techniques, following descriptive and correlation analyses. Result showed that reinsurance expenses exert positive but not significant effect on profit after tax; effect of reinsurance ceded ratio is negative but not significant. Result further showed that effect of both reinsurance expenses and reinsurance ceded ratio on return on asset was negative and insignificant. The study concluded that reinsurance activities have no significant influence performance and sustainability of insurance firms in Nigeria, though increase in reinsurance expense could reflect positive impact on profit after tax, it influences on return on asset is negative. More so reinsurance cede ratio established negative impact on both profit after tax and return on asset, which underscores detrimental effect of reinsurance activities on a firm’s sustainability. Hence insurance firms in Nigeria should tackle the issue of performance and sustainability as a broader corporate issue influence by more than just the level of reinsurance activities, and also ensure that reinsurance ceded ratio framework does not erode the prospect of improved return on asset at any point in time