Global Financial Crisis and Bank Management Practices in Nigeria : Survey Findings

This research provides a survey of bank management practices in Nigeria in periods following the 2007/2008 Global Financial Crisis. The interdependencies between banks and other financial markets have provided further constraints to bank portfolio management under uncertainty. This study uses the questionnaire and interview schedule to obtain the opinions of senior risk managers in the 24 Nigerian Deposit Money Banks (DMBs). The relevant responses were ranked with the Spearman's Rank Correlation Coefficient tested at the 5% level of significance. The results show that the stock market meltdown had the highest impact on banks' liquidity profiles in Nigeria. The employment of loose monetary policy regimes characterized by significant reductions in Monetary Policy Rate (MPR), Cash Reserve Ratio (CRR) and Minimum Liquidity Ratio (MLR) provides further portfolio constraints on banks' balance sheets. The results show that most Nigerian banks entered the global crisis era with a high record of prudential breaches and disclosure lapses. The current adoption of the International Financial Reporting Standards (IFRS) for the purpose of implementing industry best practices came after the event. Although most banks continued to target asset growth and then adjust the source of funds as needed, they still relied more on purchased funds to meet liquidity and lending requirements after the global financial crisis