IMPACT OF FINANCIAL RISKS ON THE PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA (2000-2023). A STUDY OF ZENITH BAK ANYIGBA BRANCH
Abstract
This study investigated the impact of financial risk on the performance of deposit money banks
in Nigeria. The problems was well pointed out and the research questions were raised from the
statement of problem of the study. The main and specific objectives were formulated in line with
the research questions of the study while the hypotheses were drawn in accordance with the
specific objectives. The scope of the study was drawn and those that would likely benefit from the
work were specifically spelt out. The review of literatures was categorized into conceptual,
empirical and theoretical literature. Conceptual literature was reviewed to ascertain the author’s
understanding of the various concepts that was used in the study. The empirical studies carried out
by previous researchers were reviewed to identify the gap in literature, while theories relating to
the study were reviewed and the theory that underpinned this study was identified.
Ex-post facto research design was adopted because it is a quasi-experimental study that is usually
difficult to control and the parameters such as return on asset, non-performing loan, net interest
margin and total loan to total deposit were used to examine the impact of financial risk on the
performance of deposit money banks in Nigeria. Data were collected from the annual financial
report of the stated bank. Various pre-estimation and post estimation test were carried out to
ascertain the stationarity of the data used while time-series dataestimation methods was adopted
and was used to test the hypotheses and arrive at the results.
This study found out that Non-performing loan has positive and significant effect return on asset,
net interest margin has a positive and insignificant effect on return on assets, while total loan to
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total deposit has a positive and significant effect return on asset of quoted deposit money banks
in Nigeria.
5.2
Conclusion
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