Analysis and Computation of the Performance of Micro Finance Banks in Nigeria---A Case Study of Standard Microfinance Bank, Yola

Ngutor Nyor, Adeyinka Adesuyi Falaye, Elijah Onah, Agnes Nyor, O. Patience Evans, Olayide Abass, Ndako Victor Adama

Abstract


This paper deals with the analysis and computation of the performance of Microfinance Banks in Nigeria in terms of credit performance, portfolio growth, link relative portfolio growth,  and categorization of portfolio, food security and employment generation using a case study of Standard Microfinance Bank, Yola. The withdrawal of licenses from 103 out of 407 listed Microfinance Banks in Nigeria was a concern to the researcher, being that Microfinance institutions are the major financial servers to the majority of Nigerians who are low income earners that are hardly served by the commercial banks. Using a standardard computer package, the chi-square test application shows that, although the portfolio growth of Standard Microfinance Bank Yola is not averagely 50.20% as claimed by the bank, there is an appreciable growth of 28.96%. But again, with 2005 as the base period, it recorded all time high link relative total portfolio growth of  548%. And other indices such as credit performance of the bank and portfolio by category indicate that microfinance banking in the country may be heading to the right direction except for grossly inadequate portfolio allocation of 6% for Agriculture which is supposed to be in the driving sit of the food security and employment generation. In trying times for institutions such as Microfinance Banks which bear benefits to the masses, it is recommended that either or both the regulatory body or/and the institution should publish a hope-giving-information that will dispel the possibility of the public completely losing hope in such institutions. And also calculated attempt be made to reform the land use act of March 1978 coupled with insurance provision for farmers to ease access to fund.

Keywords


Credit performance; Performing loan; Pass and watch; Substand; Doubtful; Loss; Portfolio growth; Link relative; Portfolio by category

Full Text:

PDF


DOI: http://dx.doi.org/10.3968%2Fj.pam.1925252820130501.1997

Refbacks

  • There are currently no refbacks.


Reminder

If you have already registered in Journal A and plan to submit article(s) to Journal B, please click the CATEGORIES, or JOURNALS A-Z on the right side of the "HOME".


We only use the follwoing mailboxes to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:
pam@cscanada.org
pam@cscanada.net

Copyright © 2010 Canadian Research & Development Center of Sciences and Cultures
Address: 730, 77e AV, Laval, Quebec, Canada H7V 4A8

Telephone: 1-514-558 6138
Http://www.cscanada.net
Http://www.cscanada.org
E-mail:office@cscanada.net office@cscanada.org caooc@hotmail.com