ABSTRACT

Recent reforms in the banking sector in many economies of the world particularly in the area

of risk management practices have generated public policy debates on the influence of risk

based supervision (RBS) on performance of the banking industry. This study examines the

impact of risk based supervision (RBS) on the performance of deposit money banks (DMBs)

in Nigeria. The study formulates three hypotheses and applies longitudinal panel data

regression to analyse the relationship between the dependent variable; return on assets and

the independent variables; non-performing loan, loan loss provision and loan to deposit ratio

of the banks. Furthermore, the study utilises secondary data extracted from the financial

statements of the banks over the period of 2009 to 2013. The result of the robust simple

ordinary least square regression provides evidence that non-performing loans and loan loss

provision have significant impact on return on assets. It a