Browsing by Author "MORAKINYO, Shuaib Damilola"

Now showing 1 - 1 of 1
  • No Thumbnail Available
    ItemMetadata only
    Determinants of Financial Distress in Listed Deposit Money Banks in Nigeria
    (Bells University of Technology, 2024-07-01) MORAKINYO, Shuaib Damilola; Dr. Okere Wisdom
    This empirical study investigates the determinants of financial distress in listed deposit money banks in Nigeria, covering the period from 2010 to 2022. The research aims to identify the key factors contributing to financial distress in the Nigerian banking sector. It focused on capital adequacy, exchange rate, asset quality, deposit structure, bank size, gross domestic product, inflation rate, liquidity ratio and managerial overconfidence. Using a quantitative approach and the financial ratio theory, the study analyzed the financial performance of eight listed deposit money banks in Nigeria. The findings reveal that capital adequacy, exchange rate, asset quality, inflation rate, liquidity ratio and managerial overconfidence have positive effect on financial distress while deposit structure, bank size and gross domestic product have negative effect on financial distress in DMBs in Nigeria. Also, while exchange rate, asset quality, deposit structure and bank size significantly affect financial distress in DMBs in Nigeria, capital adequacy, gross domestic product, inflation rate, liquidity ratio and managerial overconfidence do not significantly affect financial distress in DMBs in Nigeria. The study's results have important implications for policymakers, regulators and bank managers, highlighting the need for regulatory authorities to consider increasing capital to enhance resilience against financial distress, robust foreign exchange risk management frameworks should be developed by banks to mitigate the adverse impact of exchange rate fluctuations and government should implement policies that promote sustainable economic growth, as higher GDP can improve bank performance and reduce financial distress. The study contributes to the existing body of knowledge on financial stability, banking regulation and risk management, providing valuable insights for stakeholders seeking to promote a resilient and sustainable banking sector in Nigeria.