Effect of Interest Rate Spread and Bank Specific Factors on Survival of Tier-One and Tier-Two Deposit Money Banks in Nigeria

In today’s economic setting, there must be a healthy banking sector for banks to survive. Banks survival determine sound financial mediator in achieving economic performance. However, bank spread and unstable policies towards bank specific factors have become threat to bank survival in Nigeria. Secondary data and ex-post facto research design were used within the period of 2011-2020 for both Tier-1 and Tier-2 deposit money banks in Nigeria. The study found that interest rate spread, asset quality, management efficiency, bank size and board size affect bank survival in Nigeria. The study suggests that bank managers should give maximum attention to interest rate spread, and bank specific factor like asset quality, management efficiency, bank size and board size so as to ensure their survival.