This study deals with the descriptive and empirical factors influencing the choice of assets by commerical banks in Nigeria. Bank portfolio behavior was viewed within the context of allocating a given amount of wealth (total deposits) between earning assets (investments, loans and advances) and non-earning assets (required liquidity ratio). / The need for this study arises from the fact that commerical bank portfolio behavior thus provide one of the basis for formulating and evaluating monetary policy. / Prior to performing any test, a historical review of commerical banking in Nigeria was presented, discussing such areas as bank assets, liabilities, and capital structure. Also reviewed was the functions and relationship between the Central Bank of Nigeria and the commerical banks vis-a-vis the conduct of monetary policy. / A tentatively entertained model (T.E.M.) was constructed based on a macro-model and stock adjustment approach from which a "best fit" model was derived. / Using the Chow test, it was concluded that the 1976 indigenization decree did not lead to changes in bank portfolio behavior. The test for aggregate credit ceiling constraint produced mixed results. It had no effects on liquidity ratio, some effects on the investment ratio through the discount rate, loans and advance ratio through external assets. / Finally, the study was summarized as thus: liquidity, loans and advance ratios were functions of external assets and their lagged values respectively, while investment was a function of the discount rate, treasury bill rate and lagled investment ratio. In a regime of credit control, higher discount rates portend lower investment, and lower external assets meant lower liquidity, loans and advance ratios. / Source: Dissertation Abstracts International, Volume: 46-04, Section: A, page: 1050. / Thesis (Ph.D.)--The Florida State University, 1985.
| Identifer | oai:union.ndltd.org:fsu.edu/oai:fsu.digital.flvc.org:fsu_75555 |
| Contributors | OKONKWO, CHIGBO VALENTINE., Florida State University |
| Source Sets | Florida State University |
| Detected Language | English |
| Type | Text |
| Format | 183 p. |
| Rights | On campus use only. |
| Relation | Dissertation Abstracts International |
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