Macroeconomic Variables and Bank’s Performance in Canada, Ghana and Nigeria: A Panel Data Analysis

Abstract

Bank performance has been fluctuating over the years all over the world. Several attempts have been made to unravel possible causes and how they can be corrected. The aim of this study is to examine macroeconomic variables and bank performance of Nigerian, Ghana and Canadian quoted banks for a period of 2008 to 2017. The bank performance is measured by return on assets (ROA) and as a function of macroeconomic variables. This study adopted Ex-po factor research design and a panel data covering a total of 10 years period from 2008-2017 which were collated from published annual reports of banks. The population consists of 15 banks from 3 different countries with 5 banks from each country. The study employs the convenience sampling in selection of the sampling size. The results from the study showed that inflation rate and interest rate has an insignificant effect on Bank Performance of the sampled firms in Ghana, Nigeria and Canada while exchange rate has an insignificant effect on bank performance of the sampled firms in Canada and Ghana but has a significant effect on bank performance of sampled firms in Nigeria during the years understudied.