CREDIT RISK MANAGEMENT AND BANK PERFORMANCE IN NIGERIA

ABSTRACT

This study primarily focuses on empirically assessing the relationship between credit risk management and the operational performance of Deposit Money Banks (DMBs) in Nigeria. To accomplish this, we conducted a comprehensive examination of twelve publicly traded deposit money banks. Our investigation centered on five critical variables: return on assets, nonperforming loans, capital adequacy, loans and advances, and loan loss provisions. We analyzed data spanning from 2011 to 2020 across these twelve DMBs in Nigeria, totaling 120 observations. It's worth noting that our approach involved using the panel regression technique, consolidating all 120 observations before conducting the regression analysis, thus disregarding the temporal and cross-sectional aspects of the data.