This research paper discusses legal tax avoidance measures accessible to the taxpayers of Nigeria and their consequences to the banking industry as a result of the Nigeria Tax Act (2025). It takes a conceptual review method that combines the statutory provisions, academic works, and new reforms to categorize the tax avoidance strategies as income/receipt-based and expenditure/payment-based. The income/receipt-based strategies encompass statutory deductions, tax reliefs, and labeling or description of receipts of financial inflows, whereas expenditure/payment-based strategies encompass split transfers, intra-bank transfers, payroll processing, and timing of payments. Results on statutory reliefs and deductions show that taxpayers tend to do little to take advantage of statutory reliefs and deductions, opting instead to employ smaller-scale options, such as splitting and labeling of transactions, which, although legal, create operational burdens on banks, such as higher transaction monitoring, anti-money laundering (AML), and reporting. There is an increased regulatory and reputational risk because of advanced strategies like income shifting. All these are augmented in the Nigeria Tax Act (2025) that broadens the tax base, adds compliance in the form of a threshold, and makes reporting more stringent. Generally, the paper demonstrates that effective legal tax planning should strike a balance between reducing the tax payable liability on the one hand and, on the other hand, meeting the systemic impact of the banking business, regulatory oversight, and stability of the financial sector. The implications of the findings are valuable to policymakers, regulators, and financial institutions to understand the interaction of lawful tax planning, operational efficiency, and regulatory compliance in Nigeria.

Keywords: Banking sector, tax planning, taxpayer compliance, Nigeria, tax avoidance
JEL Codes: G21, H26, K34.

The consolidation of the banking sector through mergers has become a global phenomenon, driven by the pursuit of stability, efficiency, and competitive advantage. In India, this trend has been particularly pronounced, with a significant reduction in the number of public sector banks following a wave of government-led amalgamations. While the determinants of mergers have been extensively studied, the development of a predictive model using financial metrics remains a relatively unexplored area. This study aims to fill this gap by constructing a robust statistical framework for the probabilistic prediction of bank mergers using the CAMEL (Capital Adequacy, Asset Quality, Management Efficiency, Earnings, and Liquidity) framework.

Employing a discriminant analysis methodology, this research analyses a decade-long panel dataset (2011-2020) of 25 Indian public sector banks, comprising 13 merged and 12 existing entities. Three distinct predictive models were developed, each utilizing a different combination of financial ratios representing the five components of the CAMEL framework. The results robustly indicate that a bank’s capital adequacy, management efficiency, earnings capability, and liquidity are statistically significant predictors of its propensity to be merged. Notably, the asset quality dimension, measured by Net Non-Performing Asset (NPA) ratios, was found to be statistically insignificant in the models, suggesting that in the context of Indian public sector banks, mergers are not solely triggered by poor asset quality but by a broader syndrome of financial weakness.

Among the three models, the one incorporating Return on Net Worth, Net NPAs to Total Assets, Return on Assets, Net Interest Margin, and the Interest Expended to Interest Earned Ratio demonstrated superior predictive power, achieving a remarkable classification accuracy of 92%. This model provides a practical and potent tool for regulators, investors, and bank management to identify early warning signals of potential distress and merger likelihood. The study concludes that the CAMEL framework, with certain refinements, offers a viable foundation for predicting bank mergers, thereby contributing significantly to the literature on financial distress prediction and banking sector consolidation.

Keywords: Bank Mergers, CAMEL Framework, Discriminant Analysis, Predictive Modelling, Financial Distress, Indian Banking, Public Sector Banks, Consolidation.

This study investigates the impact of consumer demand and habits on the development of digital banking services in the context of Vietnam’s extensive digital transformation. The article analyzes four key factors influencing digital banking growth: the level of technology adoption, financial transaction habits, trust in cybersecurity, and the diverse demand for financial services. The research findings indicate that the widespread use of the Internet and smartphones has laid a solid foundation for the advancement of digital banking, accelerating the transition from cash-based to digital payments. This shift is reflected in the increasing adoption of cashless transactions, particularly through mobile platforms and QR codes, as well as the rapid expansion of e-wallets. According to the author, consumer readiness serves as a crucial driver of digital banking development. However, to ensure sustainable growth, banks in Vietnam must enhance security measures, establish an integrated financial ecosystem, and promote financial innovation.

Keywords: Digital banking services, DBS, consumer behavior, digital payments, financial security.

The impact of fiscal policy on Nigeria’s economic development is increasingly important due to the country’s economic volatility, dependence on oil exports, and vulnerability to external shocks. The paper investigates the asymmetric effects of basic fiscal policy instruments on economic development in Nigeria between 1981 and 2022) by employing a Non-linear ARDL (NARDL) technique. The study reveals that government expenditure shocks in Nigeria can positively impact unemployment, stimulate economic activity, and reduce poverty, while negative shocks can lead to economic decline. However, long-term effects may diminish due to inefficiencies, corruption, and economic growth. The study also shows a negative correlation between government expenditure shocks and the Human Development Index, indicating suboptimal public spending efficiency. It also highlights a positive relationship between revenue shocks and HDI, suggesting that increased revenue can improve human development outcomes. It is recommended that Nigeria can enhance youth employment, entrepreneurship, smallholder farming, microfinance institutions, and infrastructure development through various programs like the National Social Investment Programme.

Keywords: Asymmetric Effects, Fiscal Policy, Economic Development, NARDL and Nigeria.
JEL Codes: E63, O53, E21.