EFFECT OF BANK SIZE ON FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA
Silas Ndace (PhD), Dauda A, Shehu and Bello Usman
Volume 5 Issue 2
Abstract
This study analyzed the effect of bank size on financial performance of deposit money banks in Nigeria. The study employed data from 42 deposit money banks for ten years from 2014 to 2024 Panel data regression model was used to analyze data. The study results to established a negative effect of bank size on the performance of deposit money banks’ financial performance and net interest margin (NIM) and return on assets (ROA) with the results indicating a correlation coefficient of 0.1699 and 0.218, respectively. However, an absence of effect was established when return on equity (ROE) was used as a measure of financial performance. The study finding recommends that banks’ management and other policy makers should consider the effect of bank size while devising financial performance policies to ensure optimal level of banks. Effect Bank size aimed at improving banks’ financial performance. In addition, bankers’ associations should come up with policies to standardize asset quality management practices to ensure continuous positive performance of the banking sector. The study shows the contribution and applicability of the theory of production in the banking sector. Keywords: Bank Size, Deposit Money Banks, Financial Performance, Net Interest Margin and Return on Assets
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