Title: Innovative determinants of Nigerian bank financial condition

Authors: Jonathan Njoku

Addresses: Kuwait Maastricht Business School, P.O. Box 9678 Salmiya, 22097, Kuwait

Abstract: This paper aims to expand the factor base innovating the anatomy of bank financial condition. In the tradition of the anatomy of bank financial condition (Njoku and Inanga, 2010), the study explores broader variable base than could be allowed under discriminant analysis (Njoku, 2011b). The anatomy is indicative of seven factors, including market presence, macro-economic condition, deposit structure, prudence, earnings quality, market power and capital confidence. Of the seven anatomic dimensions, only five structural factors found surrogate variables fulfilling distributional assumptions under discriminant analysis. This study eliminates this constraint by involving non-parametric analysis and to allow the testing of broader range of variables. The findings indicate several viable variables within each anatomic dimension. Comparisons with the CAMELS framework further indicates new viable variables. The significant anatomic variables force model shift in bank audit and supervisory surveillance.

Keywords: bank anatomy; bank financial conditions; banking innovation; CAMELS; non-parametric analysis; Nigeria; bank auditing; supervisory surveillance.

DOI: 10.1504/AJAAF.2013.057079

African Journal of Accounting, Auditing and Finance, 2013 Vol.2 No.2, pp.91 - 113

Available online: 07 Oct 2013 *

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