Abstract: Non-performing loans are important markers of a bank's financial health and improve the bank's standing among stakeholders and the financial markets. The Nigerian banking industry is experiencing a rise in impairment charges and non-performing loans. Research indicates that non-performing loans can be decreased by effectively managing factors specific to banks, the macro economy, and institutional quality (MBIQ). Over a 16-year period (2008–2023), this study looked at the impact of macroeconomic variables, bank-specific characteristics, and institutional quality on non-performing loans of listed deposit money banks (DMBs) with international authorizations in Nigeria. The data was analyzed using both descriptive and inferential (multiple regression) statistics. The findings demonstrated that non-performing loans of listed deposit money banks (DMBs) with international license in Nigeria were significantly impacted by macroeconomic variables, bank-specific characteristics, and institutional quality (MBIQ). The study found that non-performing loans of Nigerian banks with international authorization are significantly impacted by macroeconomic variables, bank-specific factors, and institutional quality. In order to reduce the rising number of non-performing loans in Nigeria, the report advises banks and financial regulatory agencies to strictly adhere to prudential norms and credit advancement policies. To improve the quality of their risk assets, DMB management should give their customers' due diligence top priority.

Keywords: Banks’ specific factors, Exchange rate, Institutional quality, Inflation rate, Loan to deposit ratio, Macroeconomic factors

Pages: 2503-2519