DEPOSIT MONEY BANK SIZE AND FINANCIAL PERFORMANCE

ABSTRACT

This research investigates Deposit Money Bank Size and Financial Performance. The population for the purpose of this study is the total number of 22 deposit money banks licensed by the Central Bank of Nigeria to carry out banking operations. The study adopts a census sampling technique where the population is the same as the sample size. The Ordinary Least Squares (OLS) method was used to investigate the effect of bank size on the economic growth of Nigeria. It was discovered that Bank size has a positive and insignificant relationship with bank performance in Nigeria. And that Market capitalisation has a negative and significant relationship with bank performance in Nigeria. The study recommends that the Central Bank of Nigeria (CBN) should make efforts to develop indirect monetary instruments and exercise appropriate control over the monetary sector. The use of indirect monetary policy instruments influences the money supply and by implication market capitalization of the stock market which in turn directly generate price change in financial asset and also for the government through their fiscal and monetary policy tools should also try and come up with more responsive mechanisms to better react to ever changing macroeconomic shocks affecting the country.