ABSTRACT
The
main objective of this study was to determine the impact of risk asset
management on financial performance of deposit money banks in Nigeria over a
period of eight (8) years (2012 - 2020) for four (4) selected banks. The
ex-post facto research design was used for this study. The secondary data were
obtained from the financial statements of the selected banks. Descriptive
statistics, panel regressions were employed and used for this study. The
results of the analysis showed that there is no significant impact of
loans-to-deposit ratio, Non-performing loans-to-total loans ratio on return on
asset of commercial banks in Nigeria; loans-to-deposit ratio, Non-performing
loans-to-total loans ratio do not have significant impact on return on equity
of commercial banks in Nigeria and there is no significant impact of
loans-to-deposit ratio, Non-performing loans-to-total loans ratio on return on
capital employed of commercial banks in Nigeria. Based on the above findings,
the researchers recommends that banks must comply with relevant provisions of
the banks and other financial institutions Act (1999) as amended and the
prudential guidelines. Banks should ensure proper credit evaluation of potential
borrowers and lending funds should be allocated to prime borrowers; banks
should be prudent in managing the loan portfolio ensuring optimal depositors
contribution to total loans. Deposits are one of the major sources of loanable
funds for a bank, therefore deposits should cover a significant amount of loans
to avoid risk and banks should operate in alliance with top quality credit
rating firms who will ensure that loan seekers are correctly rated and the
potential risk of a loan proposal is brought to light.
CHIGOZIE, D (2024). Risk asset management and financial performance of deposit money banks in Nigeria:-Okoro, Chigozie D. Mouau.afribary.org: Retrieved Oct 31, 2024, from https://repository.mouau.edu.ng/work/view/risk-asset-management-and-financial-performance-of-deposit-money-banks-in-nigeria-okoro-chigozie-d-7-2
DANIEL, CHIGOZIE. "Risk asset management and financial performance of deposit money banks in Nigeria:-Okoro, Chigozie D" Mouau.afribary.org. Mouau.afribary.org, 07 Mar. 2024, https://repository.mouau.edu.ng/work/view/risk-asset-management-and-financial-performance-of-deposit-money-banks-in-nigeria-okoro-chigozie-d-7-2. Accessed 31 Oct. 2024.
DANIEL, CHIGOZIE. "Risk asset management and financial performance of deposit money banks in Nigeria:-Okoro, Chigozie D". Mouau.afribary.org, Mouau.afribary.org, 07 Mar. 2024. Web. 31 Oct. 2024. < https://repository.mouau.edu.ng/work/view/risk-asset-management-and-financial-performance-of-deposit-money-banks-in-nigeria-okoro-chigozie-d-7-2 >.
DANIEL, CHIGOZIE. "Risk asset management and financial performance of deposit money banks in Nigeria:-Okoro, Chigozie D" Mouau.afribary.org (2024). Accessed 31 Oct. 2024. https://repository.mouau.edu.ng/work/view/risk-asset-management-and-financial-performance-of-deposit-money-banks-in-nigeria-okoro-chigozie-d-7-2