This study investigated the effect of market risk on the performance of deposit money banks in Nigeria for the period 1994 to 2019. The core measures of market risk adopted in the study are interest rate, exchange rate, stock price and inflation rate risks. Financial performance of banks was represented by return on assets (ROA), return on equity (ROE) and yield on earning assets (YEA). The data for analysis is from the NDIC Annual Reports and Accounts, and CBN Statistical Bulletins. The ARDL technique was employed for data analysis. The results showed that exchange rate risk has positive association with the three measures of bank performance, while interest rate risk relates negatively with return on assets and yield to earning assets but positively with return on equity and insignificant with the three proxies of bank performance. Also, inflation and stock price risks have positive and insignificant effect on bank performance. The Adjusted R2 revealed that market risk has a substantial effect on the performance of deposit money banks in Nigeria.
-
International Journal of Trend in Scientific Research and Development - IJTSRD having
online ISSN 2456-6470. IJTSRD is a leading Open Access, Peer-Reviewed International
Journal which provides rapid publication of your research articles and aims to promote
the theory and practice along with knowledge sharing between researchers, developers,
engineers, students, and practitioners working in and around the world in many areas
like Sciences, Technology, Innovation, Engineering, Agriculture, Management and
many more and it is recommended by all Universities, review articles and short communications
in all subjects. IJTSRD running an International Journal who are proving quality
publication of peer reviewed and refereed international journals from diverse fields
that emphasizes new research, development and their applications. IJTSRD provides
an online access to exchange your research work, technical notes & surveying results
among professionals throughout the world in e-journals. IJTSRD is a fastest growing
and dynamic professional organization. The aim of this organization is to provide
access not only to world class research resources, but through its professionals
aim to bring in a significant transformation in the real of open access journals
and online publishing.