Bank Loan Loss Provisioning During Election Years in Nigeria

The CBN Bullion Research Paper Series, 2019

11 Pages Posted: 5 Nov 2019

See all articles by Peterson K Ozili

Peterson K Ozili

Central Bank of Nigeria; University of Essex - Essex Business School

Date Written: 2019

Abstract

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

Ozili, Peterson K, Bank Loan Loss Provisioning During Election Years in Nigeria (2019). The CBN Bullion Research Paper Series, 2019. Available at SSRN: https://ssrn.com/abstract=3475929

Peterson K Ozili (Contact Author)

Central Bank of Nigeria ( email )

Plot 33, Abubakar Tafawa Balewa Way
Central Business District, Cadastral Zone
Abuja
Nigeria

University of Essex - Essex Business School ( email )

Wivenhoe Park
Colchester, CO4 3SQ
United Kingdom

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