Actuarial Science and Insurance -Scholarly Publications

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Browsing Actuarial Science and Insurance -Scholarly Publications by Author "Fadun, O. S. & Silwimba, P."

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    Open Access
    Does credit risk management impact the financial performance of commercial banks
    (2023) Fadun, O. S. & Silwimba, P.
    Commercial banks take deposits and lend for consumption and investment purposes. This study examined the impacts of credit risk management on the financial performance of commercial banks, using five (5) first-tier banks in Nigeria as a case study. Fifteen (15) years of panel data (2005 to 2019), extracted from the audited financial reports of five first-tier listed banks, was used for the study. All the banks used are Deposit Money Banks (DMBs) listed on the Nigerian Stock Exchange. This study used Non-performing loans (NPL) and the expected credit loss impairment provisions (ECL) as credit risk management indicators and Return on assets (ROA) as the financial performance indicator. The long-run co-integration results revealed that NPL negatively and significantly affects ROA in Nigeria, and ECL positively and substantially affects ROA in Nigeria. The findings suggest that credit risk management has insignificant positive impacts on the financial performance of commercial banks in Nigeria. The study recommends that banks undertake thorough credit risk assessments before giving out loans to ensure sound credit risk management, protect depositors' funds, avoid banks' distress, and enhance their profitability.
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    Open Access
    Does Insurance Promote Economic Growth - Evidence from Nigeria
    (2023) Fadun, O. S. & Silwimba, P.
    Insurance plays an essential role in economic growth. This study analyses the contribution of insurance to economic growth in Nigeria. The research utilised an ex-post facto design, using 28- year time series data (1992 - 2019). The study's dependent and independent variables were gross domestic product (GDP) and insurance (life and non-life) premiums. The long-run co-integration result indicated that non-life premium (NLP) positively impact GDP. The coefficient shows that a percentage increment in NLP results in a 5.63 increase in GDP. The long-run co-integration results suggested that life premium (LP) positively impacts GDP. The co-efficient also shows that a percentage increment in LP results in a 4.25 increase in GDP. The results revealed a significant positive contribution of insurance to economic growth. It indicates a significant positive impact of insurance (life and non-life) premiums on economic growth in Nigeria. The results suggest that insurance contributes positively to a nation's economic activities and promotes economic growth. The government should formulate and implement economic policies to stimulate insurance activities, enforce statutory insurance and sound corporate governance.