Managing Credit Risk to Optimize Banks’ Profitability: A Survey of Selected Banks in Lagos State, Nigeria

This study examines the impact of managing credit risk and profitability of banks in Lagos state. It also focused on the need for prompt, effective and efficient service to numerous customers. The research hypothesis was tested and analyzed in relation to adequate credit risk management and its significant effect on banks’ profitability. It was also the aim of this research to evaluate how effective it is for a bank to manage its credit risk effectively to enhance profitability. In the course of this work, data was gotten through administering structured questionnaires which were answered by respondents. Correlation coefficient was used to decide whether or not credit risk management has an impact on profitability. It was then revealed through the analysis of data from the questionnaire that credit risk management operations plays a significant role in the profitability and performance of banks in Lagos State. Therefore, management need to be cautious in setting up a credit policy that might not negatively affects profitability and also they need to know how credit policy affects the operation of their banks to ensure judicious utilization of deposits. Keywords: Credit Risk, Managing, Banks Profitability, Performance, Utilization of Deposit

Investors’ Behavioral Biases and the Nigerian Stock Market Returns (2002 – 2012)

The paper was intended to find other reasons, based on investors’ behavior that may impact on the performance of the Nigerian stock market. The objectives were in three-fold: to examine the extent of behavioral biases among stock market investors in Nigeria; to determine the level of returns in the period using the Nigerian Stock Exchange All share index; and to examine the effects of behavioral biases on stock market return in Nigeria. This study was motivated by the fundamental explanations given for the causes of the 2008 collapse of the Nigerian Stock Market. This paper adopted a primary data approach based on survey research design to investigate the effects of behavioral biases on stock market return in Nigeria. The paper also used secondary data from the Nigerian Stock Exchange and employed questionnaire as instrument and the technique of correlation with Pearson Product Moment Coefficient to analyze a survey of 110 randomly selected investors in Nigeria stock market. The study found strong evidence that behavioral biases existed but not very dominant in the Nigeria stock market because a weak negative relationship existed between behavioral biases and stock market returns in Nigeria. The paper concluded that being aware of behavioral biases in the Nigerian stock market was a crucial first step in ensuring that investment decisions were properly controlled to avoid any negative impacts on the individual investors and on the stock market; again, behavioral biases might be of relevant consideration in portfolio construction in order to moderate these biases. Key words: Behavioral, Biases, Investors, Portfolios, Stock Market, Return, All Share Index

Globalization, capital market and economic development in Nigeria

This article examines the economic integration caused by globalization and effect of capital market in Nigeria context. It establishes the type of relationship and level of significance of globalization and capital market on the economic development. Globalization concept is framed as import plus export divided by growth ratio. The capital market was determined in terms of proxy (by GDP) by price index. The growth ratio assessed the level of development using econometric model. The results suggest that sound economic reform and financial policies are necessary to achieve sustainable development in Nigeria. However, there is need to increase exports, reduce imports and control exchange rate for Nigeria to achieve sustainable economic development