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Effect of Asset Quality Regulations on Financial Performance of Deposit Money Banks in Nigeria

This study investigates how regulations concerning asset quality of Deposit Money Banks (DMBs) affect their financial performance in Nigeria from 2015 to 2025. Concerns about the effectiveness of prudential regulations in sustaining profitability and stability have intensified due to rising non-performing loans (NPLs) and loan concentration. An Autoregressive Distributed Lag (ARDL) model is applied to data of 41 quarterly observations sourced from the Central Bank of Nigeria to explore short- and long-run dynamics between asset quality regulation—measured by loan-to-asset ratios and NPLs—and r…

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