Bank Performance: A Measure of the Relationship of ERM Indicators with Net Financing Per Share of Deposit Money Banks in Nigeria

Olayinka, Odutola and Ikpefan, Ochei Ailemen and Omankhanlen, A. E (2024) Bank Performance: A Measure of the Relationship of ERM Indicators with Net Financing Per Share of Deposit Money Banks in Nigeria. Innovations, 78. pp. 1195-1218.

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Abstract

This research aims to quantify the correlation between ERM indicators and net financing per share of Deposit Money Banks for a group of Nigerian banks through the use of pooled OLS, WG-VC, and flexible GLS techniques. Banks must manage a number of risks, including market, operational, interest rate, liquidity, and solvency (or capital) risks. These risks have reduced the benefits of managing the banking sector. One of the most noteworthy features of the Global Financial Crisis (GFC) was the unique nature of the liquidity crisis it precipitated, which eventually materialised as a variety of crises prior to reaching a catastrophic threshold. The outcomes demonstrated a favourable and statistically significant relationship between the chief risk officer and risk committee member parameters. Expanding these variables will result in an increase in net financing per share because the two factors have a favourable impact on net financing. However, there is no statistically significant difference between the exchange rate, price, and credit risk hedging derivative instrument and the risk mapping parameter. It demonstrates that these factors and net financing per share do not positively correlate. Derivative tools for hedging foreign exchange rate risk, the chief risk officer, and risk committee members all have positive coefficient values. This evidence shows that these factors and net financing per share are positively correlated. There is typically no positive correlation seen between risk mapping and derivative instruments used to hedge credit risk and net financing per share. Our research leads us to the conclusion that, since more than two ERM indicators have a positive impact on net financing per share, the expected or theoretical sign of the relationship between enterprise risk management and net financing per share is maintained.

Item Type:	Article
Uncontrolled Keywords:	Deposit,Banks, Enterprise,Net, Performance,Money, Share, Financing
Subjects:	H Social Sciences > HF Commerce H Social Sciences > HG Finance
Divisions:	Faculty of Law, Arts and Social Sciences > School of Management Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User:	Patricia Nwokealisi
Date Deposited:	07 Nov 2024 09:06
Last Modified:	07 Nov 2024 09:20
URI:	http://eprints.covenantuniversity.edu.ng/id/eprint/18565

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