Moderating Role of Risk Management Committee on Risk and Financial Performance of Listed Deposit Money Banks in Nigeria

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ID: 337054
2023
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Ranked #726 of 953 articles by views in Pakistan Social Sciences Review

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Abstract
The study examined the moderating role of risk management committee on risk and financial performance of listed deposit money banks (DMBs) in Nigeria for the period of ten years from 2011-2020. The study adopted the correlation research design and a sample of 13 out of a population of 14 listed DMBs listed on the floor of the Nigerian Stock Exchange as at 31st December, 2020 was used for the study. Secondary data of the sampled banks was extracted from the annual audited financial reports of the sampled banks. The data was analyzed using the multiple regression technique where in the unmoderated relationship, the generalized least square (GLS) model revealed that credit risk, capital adequacy risk and risk management committee have a significant relationship with financial performance while liquidity risk and interest risk shows an insignificant relationship with financial performance of DMBs. On the other hand, the heteroskedastic panels corrected standards errors (PCSEs) regression result revealed that the moderating effect of risk management committee has significant impact on capital adequacy risk and liquidity risk, while an insignificant relationship was found between credit risk and interest risk and financial performance of DMBs in Nigeria. For both models, the study concluded that there is significant relationship between the risk and financial performance of listed DMBs in Nigeria. Based on the findings, the study recommended thus: listed DMBs in Nigeria should do more in their monitoring ability to keep in check its credit level to avoid being out of operations as a result of high non-performing loans or illiquidity.
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Authors
Journal Pakistan Social Sciences Review
Year 2023
DOI
10.35484/pssr.2023(7-IV)40
URL
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