The Influence of Financial Leverage, Customer Deposit and Capital Adequacy on the Financial Sustainability of some Selected Nigerian Micro Finance Banks.

Aza, Ibrahim Eyigege

The Influence of Financial Leverage, Customer Deposit and Capital Adequacy on the Financial Sustainability of some Selected Nigerian Micro Finance Banks.

Aza, Ibrahim Eyigege * §

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§ Federal Polytechnic, Nasarawa

The Influence of Financial Leverage, Customer Deposit and Capital Adequacy on the Financial Sustainability of some Selected Nigerian Micro Finance Banks.

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Abstract

How to attain financial sustainability of microfinance banks in Nigeria today is one of the main problems bedeviling our microfinance banks. Several Scholars have investigated the determining factors affecting financial sustainability of Microfinance Institutions in various countries using large and well developed Microfinance Institutions. In consideration of some factors that may impact on the sustainability of microfinance banks in Nigeria, this study aims to examine the influence of financial leverage, customer deposit and capital adequacy on financial sustainability of some selected microfinance banks in Nigeria. This study utilizes secondary data sourced from the certified annual reports of the selected microfinance banks. The data for the study were analyzed using OLS regression and fixed effect regression and it was observed that there is no statistical evidence to suggest that financial leverage, customer deposit and capital adequacy has significant influence on both financial and operational sustainability. The study found insignificantly positive influence of financial leverage and insignificantly negative influence of customer deposit and capital adequacy on financial sustainability of MFBs. Capital adequacy shows significantly positive influence and financial leverage and customer deposit indicates negative influence on operational sustainability of MFBs in Nigeria.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Aza, Ibrahim Eyigege. 2018. "The Influence of Financial Leverage, Customer Deposit and Capital Adequacy on the Financial Sustainability of some Selected Nigerian Micro Finance Banks.". Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 18 (GJMBR Volume 18 Issue C3).

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GJMBR Volume 18 Issue C3

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

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Classification

GJMBR-C Classification JEL Code: G19

Submission ReceivedDecember 10, 2017
Peer Review Double Blind
Handling Editor
Accepted January 2, 2018
Published January 15, 2018

Version of record

v1.2

Issue date

May 31, 2018

Language

English

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Article Matrices

Total Score: 149

Country: Nigeria

Subject: Global Journal of Management and Business Research

Authors: Aza, Ibrahim Eyigege (PhD/Dr. count: 0)

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