Impact of Risk Management on the Financial Performance of Listed Deposit Money Banks (DMBS) in Nigeria
Journal Title: Journal of Economics, Finance and Management Studies - Year 2022, Vol 5, Issue 11
Abstract
This study looks at how risk management affects Nigeria's publicly listed deposit money institutions' financial performance (DMBs). The 10 commercial banks in Nigeria with licenses are being researched. The data used spans 12 years from 2009 to 2020 and is secondary data. The Hausman test was chosen because it suggests that a random effect model should be employed for the analysis of the panel data utilized in this study. It was determined that there is a statistically significant association between net interest margin (NIM), credit risk management (CRM), liquidity risk management (LRM), and interest rate risk management (INTRM) using the ordinary least square random effect regression model. More specifically, credit and interest rate risk management have a significant negative impact on the profitability of Nigeria's listed deposit money banks, suggesting that an increase in risk management variables will result in a decline in the financial performance of Nigeria's listed deposit money banks. Therefore, to boost their profitability, Nigeria's listed deposit money banks must enhance their credit risk management techniques.
Authors and Affiliations
Bashir Muhammed Abdullahi, Umar Mohammed Tela
Keywords
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- EP ID EP726532
- DOI 10.47191/jefms/v5-i11-12
- Views 22
- Downloads 0
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