Bank Performance: A Measure of the Relationship of ERM
\nIndicators with Net Financing Per Share of Deposit Money Banks in
\nNigeria

This research aims to quantify the correlation between ERM indicators and net
\nfinancing per share of Deposit Money Banks for a group of Nigerian banks through the
\nuse of pooled OLS, WG-VC, and flexible GLS techniques. Banks must manage a
\nnumber of risks, including market, operational, interest rate, liquidity, and solvency (or
\ncapital) risks. These risks have reduced the benefits of managing the banking sector.
\nOne of the most noteworthy features of the Global Financial Crisis (GFC) was the
\nunique nature of the liquidity crisis it precipitated, which eventually materialised as a
\nvariety of crises prior to reaching a catastrophic threshold. The outcomes demonstrated
\na favourable and statistically significant relationship between the chief risk officer and
\nrisk committee member parameters. Expanding these variables will result in an
\nincrease in net financing per share because the two factors have a favourable impact on
\nnet financing. However, there is no statistically significant difference between the
\nexchange rate, price, and credit risk hedging derivative instrument and the risk
\nmapping parameter. It demonstrates that these factors and net financing per share do
\nnot positively correlate. Derivative tools for hedging foreign exchange rate risk, the
\nchief risk officer, and risk committee members all have positive coefficient values. This
\nevidence shows that these factors and net financing per share are positively correlated.
\nThere is typically no positive correlation seen between risk mapping and derivative
\ninstruments used to hedge credit risk and net financing per share. Our research leads
\nus to the conclusion that, since more than two ERM indicators have a positive impact on net financing per share, the expected or theoretical sign of the relationship between
\nenterprise risk management and net financing per share is maintained.