The Effect of Regulatory and Supervisory Framework on Bank Risk Management in Nigeria

Abstract

The paper aims at investigating the relationship between Regulatory and Supervisory effects on banks risk management. Both descriptive and inferential statistics were used. A total of 260 questionnaires were distributed to six six principal regulators and supervisors to administered the activities of the financial institutions, with more emphasis on Deposit Money Banks (DMBs). A purposive sampling techniques was employed in the collection of the data. Both Chi-square and Z-Distribution were employed. The result show that there exist a relationship between Regulators and supervisors in reducing banks risk but a very weak correlation exist. Based on this fact finding it is recommended that the regulators needs to be more proactive and consolidate the strategy in ensuring a sound financial system.