IMPACT OF MACRO-ECONOMIC FACTORS ON BANK PERFORMANCE IN NIGERIA

ABSTRACT

This study empirically examined the impact of macro economic factors on deposit money banks performance in Nigeria over the period 2015 to 2021 (7 years). The objectives of the study were to find out whether interest rates, unemployment rate, real GDP and money supply rate have significant impact on deposit money banks performance. Thus, the panel OLS method was employed in the analysis of data, and the results obtained therefrom indicate that Interest rate (INTR) has a positive impact on deposit money banks performance. Unemployment rate (UNEMR) has a positive impact on deposit money bank performance. Gross domestic product (GDP) does not have impact on DMBs performance. Money supply (MS) does not have impact on DMBs performance. The study therefore recommends that banks should be innovated with new banking product and services and that the regulation should carry out efficient supervisory role to sustain bank stability, sustainability and profitability