Effect of Capital Adequacy on Financial Performance of Deposit Money Banks in Nigeria (2012-2023)
Student: Kasarachi Faithwin Uche (Project, 2025)
Department of Accounting
Rhema University, Aba, Abia State
Abstract
ABSTRACT The study examines the Effect of Capital Adequacy on the Financial Performance of Deposit Money Banks, listed on the Nigerian Exchange Group (NGX) from 2012 to 2023. The researcher utilized Assets Quality, Assets Base and Liquidity as proxies for capital adequacy and employed Economic Value Added (EVA) as the metric for financial performance. The study applied descriptive analysis and multiple regression models. The result revealed a significant positive relationship between Assets Base and EVA, indicating the banks with stronger capital bases that tend to perform better financially. However, Assets Quality and liquidity showed weaker relationship with EVA suggesting that they are not strongly correlated with financial performance as capital base; it recommends that Deposit Money Banks should focus on strengthen their capital base to enhance financial performance and additionally regulatory authorities should continue to enforce capital adequacy requirements to ensure stability of the banking sector.
Keywords
For the full publication, please contact the author directly at: kaspou61@gmail.com
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Institutions
- Covenant Polytechnic, Aba, Abia State 1
- Covenant University, Canaan Land, Ota, Ogun State 4
- Crawford University of Apostolic Faith Mission Faith City, Igbesa, Ogun State 2
- Crescent University, Abeokuta, Ogun State 1
- Cross Rivers University of Technology, Calabar, Cross Rivers State 142
- Delta State Polytechnic, Ogwashi-Uku, Delta State 11
- Delta State Polytechnic, Otefe, Delta State 12
- Delta State University, Abraka, Delta State 138
- Ebonyi State University, Abakaliki, Ebonyi State 17
- Edo University, Iyamho, Edo State 10