An Assessment of Factors Affecting Banks’ Risk Exposure in North Central Nigeria

Sa’idu B. Aliyu


The recent ethics of bank management have highlighted the need to balance between liquidity, asset, liability, capital adequacy, credit and interest rates risks, in order to mitigate against their loss in earnings. Consequently, the factors that may affect these risks are significant indicators to invent appropriate strategies for better bank management. It is therefore the rationale of this study to identify the factors that add to the risks that are constantly faced by commercial banks in North Central Zone of Nigeria. The factor analysis conducted indicated that liquidity and interest, domestic market, international market, business operation and credit were the factors affecting banks’ risk exposure. For this reason, banks in the zone have to critically consider these factors in formulating an effective risk management strategy that can effectively curtail any possibility of loss in income that may ultimately led to bank’s collapse.

Keywords: Bank risk, Market risk, Factor analysis, North Central Zone.

Full Text: PDF
Download the IISTE publication guideline!

To list your conference here. Please contact the administrator of this platform.

Paper submission email:

ISSN (Paper)2222-1905 ISSN (Online)2222-2839

Please add our address "" into your email contact list.

This journal follows ISO 9001 management standard and licensed under a Creative Commons Attribution 3.0 License.

Copyright ©