Abstract:
The performance of the banking industry is influenced by the economic, social, and political context in which it
functions. The significant impact of the macroeconomic and financial environment on the performance of DMBs in
Nigeria is apparent. The asymmetrical analysis of macroeconomic and financial factors influencing the performance
of DMBs in Nigeria was investigated in this study. The researchers decided to use an ex-post-facto design. The data
used in this study were obtained from the CBN annual statistics bulletin and the NBS. The NARDL methodology was
used to conduct data analysis. The individual is referred to as Phillip-Peron. Unit root tests have shown a varied level
of integration, although co-integration. The use of bounds testing methodology has provided evidence supporting the
presence of a long-term association between the independent and dependent variables. The results indicate that the
gross domestic product and all share index of the capital market have a favorable impact on DMBs in Nigeria.
Conversely, inflation, monetary policy rate, and private sector credit have a negative influence on DMBs in Nigeria.
The study recommended, among others, that the Federal Government should be committed to implementing
economic policies aimed at accelerating rapid economic growth for the enhanced performance of DMBs in Nigeria,
and the CBN should be more dynamic and strategic with the monetary policy rate (MPR) to ensure an efficient
interest rate charged by DMBs.
