CREDIT RISK MANAGEMENT AND FINANCIAL PERFORMANCE OF SELECTED BANKS IN NIGERIA
Maryam Hamisu, Murtala Aliyu Ibrahim and Adamu Garba Zango
Volume 1 Issue 1
Abstract
This study examines the effect of credit risk management on the financial performance of some listed Deposit Money Banks (DMBs) in Nigeria spanning the period 2015 - 2019. The study used Ordinary Least square (OLS) regression estimation technique. Findings of the study discovered that loans and advances has significant influence on Return on Asset (p<0.05). However, the study found Non-performing loans to have an insignificant association with ROA (p>0.05).Consequently, this study recommends that rigorous credit risk management practice should be encouraged by the regulatory authoritiesin order to ensure long term survival of deposit money banks in Nigeria. Furthermore, Nigerian DMBs need to put in place modern strategies to curtail their exposition to credit risk and improve their financial performance with a view of protecting the interest of investors and other stakeholders. Keywords: Credit Risks, Deposit Money Banks, Financial Performance, Nigeria.
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