Bank-Specific Variables and Banks’ Financial Soundness: Empirical Evidence from Nigeria

Abstract This study examines the explanatory power of capital adequacy, asset quality, management soundness, earnings liquidity and sensitivity to market risk (CAMELS) framework as well a number other variables on financial soundness (measured by regulatory adequacy ratios) banks in Nigeria. The findings, using ordinary least squared (OLS) regression subsequent establishment no panel effects among sampled banks, reveal significant potentials these bank-specific though some give reversal their prior expectations. Apart from reawakening investors’ depositors’ interest, findings further have policy implications regulation operation institutions. breaks new grounds measurement gross revenue ratio leverage ratio, quality income statement impairment charges for loan losses, inclusion most especially Nigerian context.