JOURNAL OF ACCOUNTING AND BUSINESS

MACROECONOMIC VOLATILITY AND BANK PERFORMANCE IN NIGERIA

Lawrence O. Fagbola Ph.D.,, Lawal Q. Oluwadamilola, Samuel Isayomi
June 22, 2024

Abstract

This study examined the impact of macroeconomic volatility on banks performance in Nigeria using quarterly data from the year 1999 to 202 using the Auto-Regressive Conditional Heteroscedasticity (ARCH) Model. Relevant descriptive and econometrics analyses were employed. The result revealed that the macroeconomy, interest rate, exchange rate, bank performance in Nigeria all have moderate volatility within the period under consideration. The macroeconomy, interest rate, exchange rate, have all have positive significant impact on bank performance in Nigeria. The study concluded that bank performance will only be stable after 2 quarters volatility in the macroeconomy, interest rate and exchange rate. The study recommended that for sustainable improvement in the performance of deposit money banks to be achieved, government should embark on policies that would increase productivity in the the macroeconomic of Nigeria. Furthermore, an optimum interest and exchange rates policies should constantly be engendered by the monetary authority in Nigeria for deposit money banks improved performance.

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JOURNAL OF ACCOUNTING AND BUSINESS

Published in JOURNAL OF ACCOUNTING AND BUSINESS

ISSN: 1596-9912

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