Abstract

The low performance of the Nigerian banking sector was revealed by the Financial Stability Report of the Central Bank of Nigeria in 2016, which stated that the financial status of the Nigerian deposit money banks is very week and not promising as their primary duties of financial intermediation and money creation may be affected in relation to their poor performance in almost all major banking performance indicators. This study therefore aimed to examine the effect of risk management committee attributes on financial performance of listed deposit money banks in Nigeria. The study used the census population approach by studying the entire 13 listed deposit money banks in Nigeria. Secondary data were collected from the audited annual reports of the 13 listed deposit money banks in Nigeria from the period covering 2018-2022. The study’s dependent variable which is financial performance was proxied by return on assets (ROA) and the independent variables which is risk management committee attributes was represented by: risk management committee size, independence and risk management committee meetings, while firm size was used as a control variable in the study. After all the necessary diagnostic tests were conducted, they supported the Ordinary Least Square Robust (OLS) regression technique of data analysis which was used to test the hypotheses formulated in the study. The regression result established that risk management committee size and risk management committee independence have positive and significant effect on financial performance of listed deposit money banks within the period of the study. Hence, the study concluded that risk management committee and risk management independence are the major determinants of financial performance of listed deposit money banks in Nigeria. In line with this, the study recommended that the managements of the listed deposit money banks in Nigeria should increase the number of their risk management committee size and the number of independent directors on the committee as doing so will improve the performance of these banks.

Keywords:

Risk Management Committee Attributes, Financial Performance and Deposit Money Banks.

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