Bank Loan Loss Provisioning During Election Years in Nigeria
The CBN Bullion Research Paper Series, 2019
11 Pages Posted: 5 Nov 2019
Date Written: 2019
The paper investigates the behavior of loan loss provisions during election years in Nigeria. Election events create uncertainties in the business environment in Nigeria which can increase the credit risk that banks face. The findings reveal that the banking sector had high loan loss provisions when it is under-capitalised during election years. However, the election year did not have a significant effect on the level of loan loss provisions in the Nigerian banking sector.
Keywords: loan loss provisions; income smoothing; election; Nigeria, banks, financial reporting, credit risk; corruption;
JEL Classification: G21, G28
Suggested Citation: Suggested Citation