Full Text Available
Note: Clicking the button above will open the full text document at the original institutional repository in a new window.
Investigating Nigeria's asset management corporation : a case study of a bad banking solution to banking crises
Includes bibliographical references
Saved in:
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Thesis |
| Language: | English |
| Published: |
Department of Finance and Tax
2015
|
| Subjects: | |
| Tags: |
No Tags, Be the first to tag this record!
|
| _version_ | 1867611307375591424 |
|---|---|
| access_status_str | Open Access |
| author | Ajewole, Oluseyi Joseph |
| author2 | De Jager, Phillip |
| author_browse | Ajewole, Oluseyi Joseph De Jager, Phillip |
| author_facet | De Jager, Phillip Ajewole, Oluseyi Joseph |
| author_sort | Ajewole, Oluseyi Joseph |
| collection | Thesis |
| description | Includes bibliographical references |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/15509 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2015 |
| publishDateRange | 2015 |
| publishDateSort | 2015 |
| publisher | Department of Finance and Tax |
| publisherStr | Department of Finance and Tax |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/15509 Investigating Nigeria's asset management corporation : a case study of a bad banking solution to banking crises Ajewole, Oluseyi Joseph De Jager, Phillip Financial and Risk Management Includes bibliographical references This paper provides an assessment of Africa's first "bad bank", the Asset Management Corporation of Nigeria (AMCON) and its role in resolving non-performing loans (NPLs) in the aftermath of the 2008 financial crisis. It is a case study that primarily investigates the effectiveness of AMCON in addressing the banking crisis in Nigeria based on evidence from different sources ranging from economic indicators to media reports and newspaper interviews. The establishment of AMCON in 2010 helped to resolve the non-performing loans crisis in Nigerian banks, through a transparent removal of toxic assets and by providing the affected banks with a fresh start, while eliciting a minimal moral hazard effect as far as financial institutions were concerned . Other African countries such as Ghana are now considering adopting a similar "bad bank" solution. However, the AMCON solution has been at a considerable cost to the Nigerian taxpayers as AMCON has been running at a huge loss, partly funded by the taxpayer through the government. Data analysed in the study cover the period from 2008 to 2013. The analysis showed that the AMCON solution was successful as the balance - sheet sanitization effort helped to neutralize many of the banking sector 's n on - performing loans, and spurred improvements in the sector's aggregate loan book quality with in its first two years . As at December 2012, AMCON had purchased more than 95% of the banking sector's NPLs, leaving the industry's NPLs at less than 5%. This offered banks a fresh start and the leeway to concentrate on building new and sustainable lending models. This outcome of this study supports prior empirical work which only examined bad banks in developed economies (the US A and Europe) and in the Asia Pacific. It should be noted that the "bad bank" concept is new to Africa and so there is very little empirical work on this topic. This study contributes to the discussion by its exposition on the overall positive trends in Nigeria's banking sector post - crisis and the impressive growth in bank credit , GDP and the equity market after the financial crisis. 2015-12-02T04:07:38Z 2015-12-02T04:07:38Z 2015 Master Thesis Masters MCom http://hdl.handle.net/11427/15509 eng application/pdf Department of Finance and Tax Faculty of Commerce University of Cape Town |
| spellingShingle | Financial and Risk Management Ajewole, Oluseyi Joseph Investigating Nigeria's asset management corporation : a case study of a bad banking solution to banking crises |
| thesis_degree_str | Master's |
| title | Investigating Nigeria's asset management corporation : a case study of a bad banking solution to banking crises |
| title_full | Investigating Nigeria's asset management corporation : a case study of a bad banking solution to banking crises |
| title_fullStr | Investigating Nigeria's asset management corporation : a case study of a bad banking solution to banking crises |
| title_full_unstemmed | Investigating Nigeria's asset management corporation : a case study of a bad banking solution to banking crises |
| title_short | Investigating Nigeria's asset management corporation : a case study of a bad banking solution to banking crises |
| title_sort | investigating nigeria s asset management corporation a case study of a bad banking solution to banking crises |
| topic | Financial and Risk Management |
| url | http://hdl.handle.net/11427/15509 |
| work_keys_str_mv | AT ajewoleoluseyijoseph investigatingnigeriasassetmanagementcorporationacasestudyofabadbankingsolutiontobankingcrises |