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ABSTRACT
The relevant goal of this study was to empirically determine the main determinants of deposit money banks performance in Nigeria. The empirical strategy adopted in this study is the application of the Panel least square Regression technique on pooled data from Nigeria covering the period 2010 to 2021. The results from the analysis revealed that loan to deposit ratio (LDR) has a weak positive relationship with deposit money bank’s performance, hence, it is not a significant factor in the determination of bank performance in Nigeria; loan to total assets has a weak negative impact on deposit money bank’s performance; total investment to total assets does not have any significant impact on deposit money bank’s performance. The variable failed the significance test in the model, suggesting that the ratio of investment to total assets use by banks have not caused any appreciable improvements in banks performance over time; capital adequacy ratio (CAR) is a significant factor in the determination of deposit money bank’s performance in Nigeria. It was significant at the 5 percent level. The study recommends that, since the result has shown that capital adequacy is very important in the performance of deposit money banks, managers of these institutions must make sure that they subject projects/investment and daily activities to critical analysis in terms of capital adequacy before making such investment. This will go a long to ensuring that capital adequacy continuously impact positively on banks’ overall performance.
