Assessment of Critical Factors Shaping the Performance of Deposit Money Banks in Nigeria

Authors

  • Asimiyu M.O, Oladejo Z.A & Oladejo M.O Department of Accounting Faculty of Management Science Ladoke Akintola University of Technology, Ogbomoso, Oyo State, Nigeria.

Keywords:

Capital Adequacy, Asset Quality, Management Efficiency, Earnings Management, Liquidity, Sensitivity to Market Risk.

Abstract

This study investigates the key determinants of the performance of Deposit Money Banks (DMBs) in Nigeria, employing the CAMELS framework (Capital Adequacy, Asset Quality, Management Efficiency, Earnings Management, Liquidity, and Sensitivity to Market Risk) to assess the performance of listed DMBs. Fourteen (14) DMBs listed on the Nigerian Exchange Group (NXG) as of the end of 2022 were analyzed, using their audited financial statements. Panel regression analysis was conducted to examine the relationships between dependent and independent variables. The findings indicate that CAMELS financial indicators significantly influence the performance of DMBs in Nigeria, though the direction and magnitude of the impact differ across the components. The study recommends that the Central Bank of Nigeria (CBN) should continue promoting firm growth and size strategies in the banking sector through policies that encourage deposit mobilization, cost reduction, and improved financial intermediation services to enhance profitability.

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Published

2025-02-05

How to Cite

Asimiyu M.O, Oladejo Z.A & Oladejo M.O. (2025). Assessment of Critical Factors Shaping the Performance of Deposit Money Banks in Nigeria. Journal of Accounting, Finance, and Contemporary Management Research , 1(1), 86–108. Retrieved from https://jafacomar.lautech.edu.ng/index.php/jafacomar/article/view/16

Issue

Vol. 1 No. 1 (2024): LAUTECH Journal of Accounting, Finance and Contemporary Management Research (JAFACOMAR)

Section

Articles