A.E UWUBAMMWEN

This study investigates how the prudential guideline affects the performance of Nigeria's deposit money banks between the periods 2010 to 2022. In order to examine the panel data obtained from the financial reports of the different banks, the study used descriptive statistics, correlation analysis, and the Panel Least Square (PLS) approach. According to the findings, capital adequacy has a favorable and considerable impact on deposit money banks' performance while sensitivity to market risk have a significant and negative impact on deposit money bank performance. However, asset quality, earnings quality and liquidity ratio fail the significant test. The study comes to the conclusion that the performance of deposit money banks in Nigeria throughout the analyzed time is significantly influenced by capital adequacy and sensitivity to market risk. The study suggests that, in order to improve the performance of deposit money banks in Nigeria, the current capital adequacy ratio should retained since it improve the performance of deposit money banks in Nigeria. Also, since the performance of deposit money banks are impaired by increases in sensitivity to market risk. To enhance the performance of deposit money banks, sensitivity to market risk must be kept within an acceptable range