Risk Management and Financial Performance of Deposit Money Banks in Nigeria

Student: Sharon Favour Abejide (Project, 2025)
Department of Finance
University of Ilorin, Kwara State


Abstract

This study examines the relationship between risk management and financial performance of deposit money banks in Nigeria. Using a quantitative approach, the research investigates the impact of credit risk, liquidity risk, and operational risk management on financial performance metrics such as return on assets (ROA) and return on equity (ROE). The study's findings reveal that effective risk management practices significantly influence financial performance, with implications for bank stability, profitability, and competitiveness. The results have implications for bank management, regulators, and policymakers, highlighting the importance of robust risk management frameworks in ensuring financial stability and performance. This research contributes to the existing body of knowledge on risk management in the Nigerian banking sector, providing insights for stakeholders to enhance financial performance and mitigate risks.

Keywords
management financial performance deposit money banks nigeria AbejideSharonFavour UniversityOfIlorin ZionGOLD