Title: Impact of Loan and Deposits on Banks Efficiency: A Moderating Role of Tax
Authors: Aroghene Kparobo Gloria, Ehiedu Victor C., Onuorah Anastasia C.
Volume: 9
Issue: 2
Pages: 67-73
Publication Date: 2025/02/28
Abstract:
To ascertain the interplay of loans (LOAS), loan to small scale enterprises (LOSSE), deposits (DEPOTS) and company income tax (COITA) on bank return on asset (BROA), the study specifically considered commercial banks in Nigeria since they are basically licensed to grant loan and accept deposits. To this end, aggregate data for commercial banks and data on company income tax sought form CBN statistical bulletin and Federal Inland Revenue Services were used for the study during 2007 to 2023. A variety of statistical was used to test the effect of the three-bank variable moderated by company income tax on bank return on asset. Judging from the coefficient of determination (0.6509). its adjusted value (0.5346), and F-statistics (0.00088), it was safe to conclude that the model is significant and to a reasonable extent explain changes in the return on assets of commercial banks in Nigeria. Sequel to the results of the study, the study recommends that future loans render by commercial banks should be closely monitored to ensure safety of loans. Only viable small business should be offered loan. There should be innovation on the part of banks to attracts better deposits while Government adjusts their tax policy in a way that precent double taxation at all levels so as to maintain bank asset return.