KASIMU Abudu Ph.D1 &
IROH Emeka Henry Ph.D2
1Department of Finance
2Department of Actuarial Science and Insurance
Faculty of Management Sciences
University of Benin, Benin City, Edo State
*For correspondence, email: henry.iroh@uniben.edu
Abstract
This paper investigated the impact of bank loans, foreign exchange earnings on performance of Nigerian deposit money banks. The study employed data from 14 deposit money banks spanning the period of 2010 to 2022. The method of data analysis employed is the panel least square estimation technique. The result of the study revealed that loans and advances to banks has significant but negative effect on the performance of deposit money banks in Nigeria and that loans and advances to customers have a positive and significant effect on performance of deposit money banks in Nigeria. It was also found out that foreign exchange earnings has a positive and significant impact on the performance of deposit money banks in Nigeria and that the effect of exchange rate fluctuations on cash held does not have significant impact on the performance of Nigerian deposit money banks. The study concludes that shareholders wealth is significantly affected more by factors outside the traditional banking functions of banks and therefore recommends for continuous financial reengineering to constantly profit from the dynamic financial environment.
Keywords: Bank Loans, Foreign Exchange Earnings, Bank performance, Influences of Foreign Exchange.