American Finance & Banking Review 2018-12-18T19:10:58+06:00 Managing Editor Open Journal Systems United States and the Middle East after the Cold War 2018-10-30T14:58:59+06:00 Yusuf Ibrahim Gamawa <p>The United States emerged as the most powerful country after World War II and as such found itself in an influential position to be involved in the future and destinies of many countries across the globe. The U.S. played a major role in the post War economic reconstruction in Europe and rendered assistance to many European states. American power at this time was seen to have extended to other parts of the globe, including the Middle East, which has been a region of interest to outside powers. This short paper tries to look at U.S. ambitions in the region and how far the U.S. has gone in achieving these ambitions. The paper argues that U.S. policies in the Middle East were in the long run, a failure, despite whatever successes achieved, following certain developments in the region, beginning with the 1979 revolution in Iran.</p> 2018-09-13T00:00:00+06:00 ##submission.copyrightStatement## The Determinants of the Foreign Direct Investment on the Macroeconomic Variables: The Case of the Algerian Economy 2018-10-30T14:58:59+06:00 Ahmed Smahi <p>Foreign direct investment in Algeria as a percentage of GDP represented 0.9% during the last decade. The goal of this study is to assess the effect of Foreign Direct Investment on Algerian economy through an empirical analysis by applying the bounds testing ARDL and ECM-ARDL using annual data for the period 1970-2014. As far as the role of FDI is concerned, we shall try to highlight <em>its effect</em> that may show causal relationships to <em>non</em>-<em>hydrocarbon</em> GDP, <em>non</em>-<em>hydrocarbon</em> export, industry and employment in long run. Our estimation of an ARDL model indicates that the political and macroeconomic stability are not enough to attract FDI to help non-hydrocarbon sectors drive economic growth.</p> 2018-09-24T00:00:00+06:00 ##submission.copyrightStatement## Oil Price Volatility, Exchange Rate Movements and Stock Market Reaction: The Nigerian Experience (1985-2017) 2018-11-13T13:34:30+06:00 Onyemachi Maxwell Ogbulu <p><em>Given the observed volatility in crude oil prices in the international oil market and the role which oil and gas play in the Nigerian economy, this paper is an attempt to investigate the impact of crude oil prices and foreign exchange rate movements on stock market prices in Nigeria. In addition, the paper examined whether there is any volatility pass-through between the dollar price of Nigerian crude oil, foreign exchange rate of the Naira and stock market prices respectively. Data employed for the study are monthly values of the Nigerian Stock Exchange (NSE) All-Share Index (ASI), Dollar price of Nigerian Crude Oil (DPO) and the Official Exchange Rate of the Naira to the US Dollar (FXR) from January, 1985 to August, 2017. The methodology adopted for the study include the ADF unit root tests, Johansen co-integration tests, the ECM technique, Granger causality tests, variance decomposition as well as the GARCH(1,1) to model the volatility relationships among the variables. Findings reveal that there is one long-run dynamic co-integrating relationship among the variables ASI, DPO and FXR while the ECM results indicate that Crude oil price (DPO) significantly impact on Stock market prices. The Granger causality test reports a bi-directional causality relationship between ASI and DPO and a unidirectional causality running from FXR to ASI. The ARCH-GARCH volatility analysis demonstrates vividly that stock market prices in the NSE exhibit ARCH effect with a significant and positive first order ARCH term. The GARCH term is also positive and significant indicating that previous month’s stock market price volatility significantly influences current stock market volatility in the NSE. In addition, findings show that the volatility of dollar price of Nigerian oil (DPO) in the world oil market is significantly transmitted to the volatility of stock market prices in Nigeria.&nbsp; The pass-through effect of the volatility of exchange rate (FXR) to the volatility of stock market prices is also positive and significant. These findings offer significant informational signal to policy makers, portfolio managers/advisors and the investing public in achieving optimal asset and portfolio profile.</em></p> 2018-11-12T15:25:26+06:00 ##submission.copyrightStatement## Challenges of the Nigerian Banking Sector and the Way Forward 2018-12-14T18:21:12+06:00 Ibrahim Aliyu Gololo <p>Nigerian banking sector struggle with challenges in the day to day running of their business activities, challenges are enormous and can either be market or operational challenges and regulatory or reforms challenges instituted by the regulatory agencies such as CBN, NDIC, SEC and CIBN etc. Therefore, this paper seeks to examine the challenges facing the Nigerian banking sector and proper possible solutions to the challenges based on the prevailing economic environment. The paper utilized questionnaires as source of data collection, fifteen out of 24 banks were selected based on purposive sampling method. Chi-Square (x<sup>2</sup>) method was adopted as a statistical tool of data analysis to analyze the collected data.&nbsp; The result reveals that myriad of challenges exist in the Nigerian banking sector some of which are challenges both within and outside Nigeria. Banks are left behind in technological innovation aspect of banking transactions, movement of high volume of deposit or capital flight to foreign banks by the political class which reduce banks opportunity to expand their market base and the prevalent of fraud in the sector also hinders the banks progress, these challenges affects the sector to compete equally with banking sector in the developed nations. However, we also found that the challenges does not affect their financial performance. It is recommended that that government and relevant regulatory agencies should put heads together to render support and address those challenges identified that affect the sector, also Nigerian banking sector should invest in both technological innovation and human capital development, they should imbibe the culture of good corporate governance and stick to the issue of banking ethics and professionalism among others.</p> 2018-12-14T18:21:12+06:00 ##submission.copyrightStatement## Factors that Influence the Adoptions of Internet Banking Among Customers 2018-12-18T19:10:58+06:00 Muhammad Azimulhakim Bin Haji Saman <p>Internet banking is the latest technology that has revolutionized the changes of banking and business systems around the world. However, arrival of technology has an impact on Internet banking and transforms from a traditional banking system to a very useful innovation technology. The purpose of this study is to analyze factors that have influenced users to use Internet banking in doing financial transaction. This study uses content analysis on the previous literatures. The findings showed that there were 10 main different factors which influence the adoption of internet banking by the users. This study also proved that the highest factors which consist of 2 main factors are generated from technology acceptance model (TAM). Contribution of this research are significantly helps bank to have a better understanding on factors that influence the adoption of internet banking as well as help to develop a strategy to improved internet banking services.</p> 2018-12-18T19:10:58+06:00 ##submission.copyrightStatement##