Abstract: The study evaluates the impact of credit risk management on deposit money banks financial performance in Nigeria from 2011 to 2020. The study used 12 DMBs in Nigeria as sample of the study. The data employed were extracted from the sampled banks annual reports and accounts. Panel data regression was used to analysed the data. The study documented that loan and advances have negative impact on economic value added which was used as proxies for DMBs financial performance. Similarly, the study found that loan loss provision has negative effect on financial performance of DMBs. The study recommended that the management should implement a credit-sound programme that will boost profits. Management should make loans based on strong collateral. Despite the fact that it is a requirement for sound lending, it could provide as a soft cushion for the recovery of nonperforming loans, reducing loan losses.
Keywords: credit risk management, deposit money banks. DMBs, financial performance.
Title: THE EFFECT OF CREDIT RISK MANAGEMENT ON FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS: EVIDENCE FROM NIGERIA
Author: Anthony Kolade Adesugba, Olalere Victor Dotun
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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