CREDIT MANAGEMENT POLICY AND CORPORATE FAILURE IN THE NIGERIAN BANKING SECTOR

ABSTRACT

This study examines credit management policy and corporate failure in the Nigerian banking sector. The study extracted data from the annual report of Nigerian Banks. The Ordinary Least Squares technique was used to estimate the model while ex post facto research design served as the blue print to guide the research. The result revealed that there is negative insignificant relationship between non-performing loan and corporate failure in Nigeria banks. The result also shows that there is negative insignificant relationship between loan loss provision and corporate failure in Nigerian banks. Similarly, the result indicates that there is negative significant relationship between loan advance and corporate failure in Nigeria banks. The result further shows that there is positive insignificant relationship between capital adequacy and corporate failure in Nigeria banks. The study recommends among others that bank management should imbibe proper effort geared towards establishing and maintenance corporate culture that will enhance leadership equipped and able to establish a culture within the banking sector that would be able to recognize risk and take actions that would lead to bank stability.