Benue State University, Makurdi

An Assessment of Perceived Risky Banking Behaviour : A Comparative Study of Banks and NDIC Workers

Helen O. Osinowo and A.O. Abumere

Abstract

The banking, savings and loans crises which engulfed the Nigeria banking industry since the beginning of the last decade have been, and will continue to be a source of concern to investors, bankers, depositors, management experts, and public commentators well into the future. Following the trend of distress, its causes and possible remedies have been given psychological explanations. This study was therefore embarked upon to identify the risky behaviour of managers in the distressed banks. A total of 90 respondents (48 males and 42 females) participated in the study with their ages ranging from 32 to 48 years with a mean of 36 years. The participants were drawn from the Nigeria Deposit Insurance Corporation (NDIC) Lagos, and 2 new generation commercial banks. The perceived Risky banking Behaviour Scale (PRBBS) was used to collect data. Result revealed that NDIC workers significantly identified risky bank behaviours more than the distressed and non- distressed bank employees (t(88)=3.03, (p < 05). There was also significant difference between male and female bank workers in the recognition of risky managers bank behaviours (t(88)=1.86, p=0.05). Healthy bank workers were not significantly different from distressed bank workers in their assessment of perceived risky banking behaviours. 1t was recommended thatthe NDIC should take into cognizance the important role of psychological factors in selecting, managing and predicting managers’ bank performance. The important role of training bank workers in the identification and vigilance on risky bank behaviours are emphasized in the paper.

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