REGULATORY COMPLIANCE MEASURES AND FINANCIAL STABILITY OF DEPOSIT MONEY BANKS IN NIGERIA

This study investigates the relationship between regulatory compliance measures and financial stability of DMBs in Nigeria during the period 2011 to 2021.  The dimensions of regulatory compliance measures as the independent variable aremonetary policy regulation and credit allocation regulation, while financial stability as the dependent variable was measured with   capital adequacy. Ex-post facto design was applied in the study to gather existing data on the variables. The Central Bank Statistical Bulletin formed the source of secondary data. E-view 10 software version was used for statistical analyses wherein descriptive, univariate, bivariate and multivariate results were produced. The results disclosed the following: positive and significant relationship between monetary policy regulation and capital adequacy, and positive and significant relationship between credit allocation regulation, and capital adequacy. From the findings, the research concluded as follows: that monetary policy regulation exhibited the potential to change capital adequacy amongst others. Thus, the study recommended that shareholders of quoted DMBs in Nigeria should understand the complex nature of banks’ capital adequacy in relation to financial regulations