Bank Distress on Deposit Money Banks Performance in Nigeria: The Effect

The study investigated the effect of bank distress on bank performance in Nigeria. In specific terms, the study examined the effect of non-performing loan on bank performance, investigate the effect of financial leverage on bank performance and evaluate the effect of liquidity on bank performance in Nigeria. The study cut across five banks in Nigeria and data was collected from 2013 to 2023. The study adopted ex-post facto research design to structure the study. Data Annual financial statement of banks beginning from 2013 to 2023. The study proxied bank performance by profit after tax while bank distress was captured by non-performing loan, financial leverage and liquidity. The data are econometrically tested using descriptive statistics as well as inferential statistics especially with the use of Panel regression statistics. In the empirical finding, the study statistically found that, non-performing loan (t=--6.648040; p<0.05), has negative and significant effect on profit after tax; financial leverage (t=-2.386009; p<0.05) has negative and significant effect on profit after tax; and liquidity (t=--2.441534; p<0.05) has negative and significant effect on profit after tax in Nigeria. Based on the finding of the result, the study concluded that bank distress has negative and significant effect on bank performance in Nigeria.