EMPIRICAL STUDY ON MEASUREMENT OF PERFORMANCE OF NIGERIAN MONEY DEPOSIT BANKS

This study examines the performance of the Nigerian money deposit banks for the period 2008 to

2012. Past studies attempted to measure the performance and efficiency of the banking industry using

different kinds of performance indicators such as outputs, costs, financial measures, economic measures

to include Total Factor Productivity (TPF) among others. But in this study, the researchers focused

on another aspect by adopting the Performance Indexing Model developed by Suat, Dilek &

Oya (2011), to determine the performance levels of these banks when subjected to ranking. The study

covered eleven (11) Nigerian money deposit banks listed in the Nigerian Stock Exchange Market. This

was augmented by Time Series Panel Data Analysis to determine the magnitude of performance characteristics

of the selected banks. Findings showed that, there is a significant and positive relationship

between money deposit banks and the performance characteristics. It also showed that Access Bank

is dominating as the best performer as indicated by Performance Index and that the model (PIM) is

suitable for measuring money deposit banks performance as against the traditional method of using

financial measurement only. It was recommended that Money deposit banks should not be measured

by financial reports only, but should include management efficiency, capital adequacy, and asset quality

among others (performance characteristics).

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