For correspondence:-
Received: December 13, 2020 Accepted: March 4, 2021 Published: March 31, 2021
Citation: Risk Management and Performance of Nigerian Deposit Money Banks. Account Tax Rev 2006; 5(1):30-44 doi:
© 2006 The authors.
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Abstract
This study examined the effect of Risk Management (Interest rate risk and Exchange rate risk) on the performance of selected Nigerian Deposit Money Banks from 2008 -2017. The study employed secondary data which were obtained from the audited annual financial records of the banks. Purposive sampling was used to select a sample size of 15 banks listed on the Nigerian Stock Exchange. The data were analysed using content analyses, percentages and fixed-effect model. The results showed a negative significant relationship between interest rate risk and the performance of the Nigerian Deposit Money Banks and a positive but insignificant relationship between exchange rate risk and the performance of the Nigerian Deposit Money Banks. Consequently, the study recommends that Nigerian Deposit Money Banks holistically review their interest-bearing assets and liabilities, especially, the loan assets portfolio. The modalities for advancing credits to customers should also be reviewed to accommodate the changing economic realities in the country, as evidenced by the economic recession of 2016 and the current inflationary trend.
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