ASSET-LIABILITY MANAGEMENT AND BANK SURVIVAL OF SELECTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract Asset-liability management represents a critical benchmark that deposit money banks must systematically monitor and integrate into strategic financial and operational decision-making processes to ensure institutional sustainability. In light of this, the present study investigates the impact of asset-liability management on the survival of selected deposit money banks in Nigeria. Employing an ex-post facto research design, the study utilized secondary data derived from selected deposit money banks covering the period from 2010 to 2021. Panel regression analysis was applied to examine the relationship between asset-liability structure—measured by cash and cash equivalents, net loan portfolio, net fixed assets, total deposits, and total long-term funding—and bank survival, proxied by the capital adequacy ratio. The empirical findings indicate that the asset-liability structure, across the specified dimensions, exerts a statistically significant influence on bank survival among the sampled banks. Based on these results, the study concludes that the effective management of key asset and liability components—specifically, cash and cash equivalents, net loan portfolios, net fixed assets, total deposits, and long-term funding—is vital to enhancing the capital adequacy and, by extension, the long-term viability of deposit money banks in Nigeria. Consequently, it is recommended that top management of deposit money banks prioritize prudent management of cash and cash equivalents, ensuring a year-on-year increase in alignment with regulatory standards, to promote institutional resilience and sustainability. Keywords: asset-liability management, deposit money banks, sustainability, institutional resilience.