Cross Border Banking Liabilities on the Net Interest Income of Quoted Commercial Banks in Nigeria

The purpose of this study is to investigate how cross-border banking liabilities affect the net interest income of Nigerian commercial banks that are listed. Data from the Central Banks of Nigeria statistical bulletin (2012–2021) and the financial statements of 13 mentioned commercial banks were used in the analysis to meet the study's goals. To investigate the link between the independent and dependent variables, several regression models were developed. The relationship between cross-border credit, cross-border claims, cross-border deposits, and cross-border bank branches was used to predict net interest income. Following the models' cross-sectional validity, the findings support the application of the fixed effect model. The F-statistics and probability support the usage of the models, and the Durbin Watson statistics of the variable demonstrate that the coefficients are larger than the top band, demonstrating the lack of negative serial autocorrelation. The study's conclusions showed that variables related to cross-border banking obligations accounted for 60.7% of the commercial banks' net interest income, with other factors accounting for the remaining 95%. The findings show that there is a positive but non-significant correlation between the net interest income of the quoted commercial banks and cross-border banking credits, a positive and non-significant correlation between cross-border banking claims and net interest income of the commercial banks, a positive and significant correlation between cross-border banking deposits and net interest income, and a positive and non-significant correlation between cross-border banking deposits and net interest income of quoted commercial banks during the periods. The study comes to the following conclusions: Does cross-border banking have a significant relationship with net interest income? Does cross-border credit have a significant relationship with net interest income? Does cross-border banking have a significant relationship with net interest income? Does cross-border banking branches have a significant relationship with net interest income of quoted commercial banks in Nigeria? In order to boost the net interest income of Nigerian commercial banks that are quoted, the study suggests that policies such banking sector internationalization be developed to improve cross-border banking among Nigerian commercial banks.