摘要：The banking industry is an active participant in the Nigeria Financial markets in building the economy throughthe mobilization of funds from the surplus sector to the defcit sector. Hence, the banking industry has been facingthe challenge of risk asset management which culminated into some debts becoming hardcore, irrecoverable andwrite-off against income, added to the challenge of mismatch of funds leading to liquidity challenge in the face ofrisks assets becoming non-performing. The study evaluated the effect of risk asset and liquidity management onthe sustainable performance of Deposit Money Banks in Nigeria. The study adopted both the ex-post factor andsurvey research methods. The population of this study comprised the Deposit Money Banks operating in the bankingindustry while the samples were three banks in addition to Central Bank of Nigeria as sample representatives.Primary data were used to obtain opinions of respondents while secondary data were used to analyze the actionstaken by the managers. Both descriptive statistics and regression analysis were used for the analyses with the aidof Statistical Package of Social Sciences (SPSS). All analyses were based on level of signifcance 0.05., and fourhypotheses were tested. The fndings showed that there are strong relationships between risk asset management,liquidity management and sustainable performance in Nigeria Deposit Money Banks. With R2 of 0.738, t-statistics of2.526 and p-value of 0.000, non-performing loans have signifcant negative impact on the assets of Deposit MoneyBanks in Nigeria; With R2 of 0.807, t-statistics of 14.755 and p-value of 0.000,low cash deposit has a signifcantnegative impact on the capital of Deposit Money Banks in Nigeria; With R2 of 0.725, t-statistics 11.718 and p-value0.000,non-compliance with CBN’s stipulated cash balance requirement has a signifcant negative impact on theproftability of Nigeria Deposit Money Banks; and with R2 of 0.671, t-statistics of 10.303 and p-value of 0.000,inadequate liquidity management has a signifcant negative impact on the dividend payment of Nigeria DepositMoney Banks. The study concluded that effective risk asset management and liquidity management remain thenuclear of the banking industry to maintain sustainable performance. The study recommended that the regulatoryauthority should enforce compliance with monetary policies; that banks should institute effective and quality riskasset and liquidity management in order to maintain fnancial stability and sustainability.
