Research Objectives: This study aimed to determine the effect of corporate reserve on non-current liabilities of deposit money banks in Nigeria The specific objectives of the study include to; examine the effect of statutory reserves on the non-current liability of deposit money banks in Nigeria, ascertain the effect of regulatory risk reserves on the non-current liability of deposit money banks in Nigeria and review the effect of retained earnings on the non-current liability of deposit money banks in Nigeria.
Methodology: The independent variables under study are statutory reserves, regulatory risk reserves, and retained earnings while the dependent variable is a non-current liability. The study used an ex-post facto research design. Data were collected from the published annual reports and accounts of the selected Deposit Money Banks and were analyzed using descriptive statistics and panel least square regression model as an analytical technique.
Findings: The study revealed that Statutory reserve has a significant effect on the Non-current liability of deposit money banks in Nigeria (where the p-value = 0.0203), that Regulatory risk reserve has a significant effect on the Non-current liability of deposit money banks in Nigeria (where p-value = 0.0160) and that retained earnings have a significant effect on the Non-current liability of deposit money banks in Nigeria (where p-value =0.0042).
Conclusion: The study concluded that a significant relationship exists between statutory reserve, regulatory risk reserve and retained earnings and the Non-current liability of deposit money banks.
Recommendations: The study recommended that deposit money banks in Nigeria should ensure their statutory reserve is always maintained to enable them to have adequate liquidity to meet up with shareholders’ demands. Need for regulators like the CBN not to increase the regulatory risk reserves of quoted commercial banks in Nigeria for effective regulatory capital management. It is finally recommended that deposit money banks in Nigeria should enact a policy or policies whereby a high percentage of net profit is retained in the business. This is to ensure improved performance. The implication of these is that the banks under review have adequate liquidity to maintain their non-current liabilities.
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