Olabisi Rufus Adewumi, Sulaiman Aminat Adebukunola, Olasumbo Maryam Bello-Olatunji


The ability of banks to manage their credit has the tendency to affect their performance. One of the major reasons why banks suffer credit losses in their loan portfolio is ineffective management of credit and risk. The influence of credit risk management on the performance of Nigeria Money Deposit Banks was examined in this study. In this study credit risk management was proxy with non-performing loans and secured loans while the dependent variable ‘performance’ was proxy with profit after tax margin. 13 money deposit banks were randomly chosen for this study. 10 years’ period starting from 2010 to 2019 were covered by the study. This study utilized secondary data which were taken from the audited annual report of the chosen banks. Descriptive statistics and inferential statistics were employed for this study. The findings of this study revealed that there is negative and significant connection between non-performing loans ratio and profit after tax margin evidenced with t-statistics of -1.9646 and co-efficient value of 0.0321 whereas the study revealed that there is a positive significant relationship between secured loans and profit after tax margin of quoted DMB in Nigeria supported by t-statistics of 8.0504 and co-efficient of 0.0000. Hence, this study concludes that credit risk management has significant influence on performance of Nigeria deposit money banks. This study recommends that DMBs should devise plans to push their non-performing loan down to the barest minimum. Also, they should also ensure that a careful appraisal process is followed when extending loans to customers.


Credit Risk, Credit Risk Management, Non-performing Loans, Secured Loans

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