Bank Size Interaction Effect of Asset-Liability Management on Earnings of Deposit Money Banks in Nigeria

Authors

  • Segun Kamoru Fakunmoju
  • Saidi Tunji Salawu
  • Yunus Babatubde Jinadu Mohammed

Keywords:

Assets, Bank earning, Bank size, Liabilities, Total deposit

Abstract

Earnings have become one of the major reasons banks are still in existence. Achieving targeted
earning by banks has become major challenge. This challenge has created mis-match of assetsliabilities
which in turn led to decline in bank earnings in Nigeria. Objective of the study focused
on bank size interaction effect of Asset-Liability Management (ALM) on bank earning among
Deposit Money Banks in Nigeria. Fixed panel regression and System GMM techniques with expost
facto research design were employed for the period of 2010-2021. Finding revealed that
ALM components influenced bank earnings. Also, the study revealed that bank size had
significant interaction effect with components of asset-liability management on earning of banks
in Nigeria. Thus, the study suggested that bank top management should give more sound priority
to both ALM policies and bank size or bank total asset and also ensure no assets-liabilities mismatch
so as to achieve sound bank earning among banks in Nigeria.

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Published

2024-06-26