The Impact of Reserves Debt Ratio on Profitability of Commercial Banks: Lesson from Nigeria
This study attempts to explore the impact of the change in international reserves to external debt ratio positions of Nigeria on the profitability of domestic deposit money financial institutions. Using the sample of 14 listed banks operating in the market from the period 2004 to 2014, in the study we employed dynamic fixed effect (DFA) methodology to the banking institution. The result reported that a change in international reserves to debt ration position has a significant impact on bank returns during the short run period. However, in the long run, position the change affect banking return negatively.