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ABSTRACT
The study examines the effect of macroeconomic variables on deposit money banks performance in Nigeria for the period 2011 - 2020. The study employed the descriptive statistics, correlation analysis and the panel data methodology to analyze the annual panel data sourced from the audited financial reports of the respective banks and the CBN Statistical Bulletin. The findings specifically reveal that interest rate, exchange rate and inflation rate has significant negative effect on deposit money banks performance. Economic growth did not significantly affect deposit money banks performance during the studied period. Foreign remittances and money supply has a significant positive effect on deposit money banks performance in Nigeria. The study concludes that macroeconomic variables play a key role in the performance of deposit money banks in Nigeria during the studied period. The study recommends that regulatory authority (CBN) should reduce the interest rate in order to reverse its negative effect on deposit money banks performance. Also, regulatory authority should come up with policies to stabilize the exchange rate and inflation rate in order to reverse its negative effect on the performance of deposit money banks. Central bank of Nigeria should come up with policies to improve the economy so that it can contribute effectively to the performance of deposit money banks in Nigeria.
