Effect of Regulatory Policies on the Economic Sustainability of Deposit Money Banks in Enugu State
Year: 2026
Type: article
Abstract: The study evaluated the effect of regulatory policies on the economic sustainability of deposit money banks in Enugu State. The specific objectives were to: examine the effect of capital adequacy on cost reduction and ascertain the effect of financial reporting on the operational efficiency of deposit money banks in Enugu State. The area of the study was Enugu State. The study adopted a descriptive survey design. The primary source of data was a questionnaire. A total population of 282 staff was used, out of which 227 returned the questionnaire, which were accurately completed. Data were presented and analyzed using mean and standard deviation, and the hypotheses were tested using the Z-test. Results showed that capital adequacy had a significant positive effect on cost reduction (Z = 8.287, p < .05), and financial reporting had a significant positive effect on the operational efficiency of deposit money banks in Enugu State (Z = 9.110, p < .05). The study concluded that capital adequacy and financial reporting had significant positive effects on cost reduction and operational efficiency of deposit money banks in Enugu State. The study recommended, among other things, that to enhance cost reduction through capital adequacy, deposit money banks (DMBs) in Enugu State should adopt proactive capital planning and efficient risk-based asset allocation strategies. Capital adequacy, which ensures that banks maintain sufficient capital to absorb losses and rema
Author: Loveth Ngozi Ugochukwu
Institution: Enugu State University of Science and Technology
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7078872368
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