The political environment plays a pivotal role in shaping the performance of Deposit Money Banks (DMBs) in FCT-Abuja, Nigeria. This study examines the relationship between the political environment which encompassing political stability and government regulations and the performance of DMBs, measured by financial stability and regulatory compliance. Using a sample of 299 employees from five major banks in FCT-Abuja, data were collected through structured questionnaires and analyzed using multiple regression analysis. The findings reveal a significant positive relationship between political stability and financial stability, as well as between government regulations and regulatory compliance. These results underscore the importance of a stable political environment and consistent enforcement of regulations in enhancing the operational efficiency and resilience of DMBs. The study contributes to the literature by providing region-specific insights into the dynamics shaping DMB performance in FCT-Abuja and highlights the applicability of Institutional Theory in understanding these relationships. Based on the findings, the study recommends that policymakers prioritize measures to enhance political stability, streamline regulatory frameworks, and promote transparency to support the growth and sustainability of the banking sector. These insights are critical for fostering economic development and ensuring the resilience of DMBs in politically influenced environments.

Assoc. Prof. Dare Daniel Joseph, Johnbull Shekarau, "Political Environment and Performance of Deposit Money Banks (DMBS) in Fct, Abuja" International Journal of Humanities and Social Sciences Research Studies, V1(3): Page(32-39) July-August 2026. ISSN: 3139-0854. www.ijhssrs.com. Published by Scientific and Academic Research Publishing.