Bank Governance, Asset Quality, and Risk. Do Macro-Prudential Policy and Macroeconomic Factors Matter? Evidence from Nigeria’s Banking Sector

Purpose: This study examines the nexus between bank governance, asset quality, and banking risk measured by distance to default (DTD) their interactions with prudential policy macroeconomic factors. Theoretical framework: uses Resource Based View (RBV) lens examine how banks use unique resources, asset, competencies, governance framework mitigate adverse impact of risks navigate regulatory policies variables. The RBV provides context on banks’ resources optimise long-term objectives in a complex economic landscape. Design/Methodology/Approach: analyses panel data from 12 listed Nigeria Stock Exchanges (NGX) 2008 2021. tests autocorrelation, heteroskedasticity, cross-sectional dependence validate study’s analysis. various diagnostic tests, Feasible Generalised Least Squares (FGLS) are suitable for hypothesis testing. Findings: findings revealed that interaction quality has negative insignificant risk. And liquidity, interest rate, inflation gross domestic product significant determinants Research, practical & social implications: Maintaining effective management requires adherence all stakeholders macro-prudential monetary policymakers factors fiscal policymakers. Originality/Value: empirically developing country, incorporates factors, DTD metric assessment rarely used related studies countries.