Original Research Article | OPEN ACCESS
Risk Management and Performance of Nigerian Deposit Money Banks

Yemisi Olabisi-Ayodele1 Mary Kehinde Salawu2

1Department of Accountancy, Federal Polytechnic, Ede; 2Department of Management and Accounting, ObafemiAwoloro University.

For correspondence:-  Yemisi Olabisi-Ayodele   Email: ededayemi7862@gmail.com

Received: December 13, 2020        Accepted: March 4, 2021        Published: March 31, 2021

Citation: Olabisi-Ayodele Y.Salawu MK. Risk Management and Performance of Nigerian Deposit Money Banks. Account Tax Rev 2021; 5(1):30-44 doi:

© 2021 The authors.
This is an Open Access article that uses a funding model which does not charge readers or their institutions for access and distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0) and the Budapest Open Access Initiative (http://www.budapestopenaccessinitiative.org/read), which permit unrestricted use, distribution, and reproduction in any medium, provided the original work is properly credited..


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.

Keywords: Risk Management, Exchange Rate Risk, Interest Rate Risk, Performance, Nigerian Deposit Money Banks

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