Abstract: This study seeks to assess the relationship between credit risk management and performance in deposit money banks in Nigeria. To achieve this, the study would cover five years (2010-2015). Ten commercial banks will be chosen as sample of the whole Nigeria commercial banks. The audited annual financial statement of the selected Banks for the years in view will be used in obtaining data for the purpose of this research. Most research conducted under this study shows a significant relationship between credit risk management and performance using Return on Assets (ROA) and Return on Equity (ROE) in Sub-Saharan countries. Very few of this research has measured net interest margin (NIM) as a measure of performance in Nigeria. The independent variable which is Credit Risk Management measures the Non-Performing Loan Ratio (NPLR) and Loan to Deposit Ratio (LTDR) while the dependent variable which is performance measures the Return on equity (ROE), return on assets (ROA) and Net interest margin (NIM). Descriptive statistics and Econometric analysis using the panel linear regression methodology consisting of periodic and cross sectional data in the estimation of the regression equation will be adopted in the methodology and analysis in determining the relationship of both variable in Nigerian deposit banks. The need for management to create the right credit policy and also ensure full implementation must be adhered to in other to bring positive performance and also the importance of knowing how credit policy affects the operation of their banks activities to ensure an efficient utilization of customer deposits.
Keywords: Credit risk management, performance, commercial banks, return on assets, net interest margin.
Title: The Effects of Credit Risk Management on the Performance of Some Selected Deposit Money Banks in Nigeria
Author: Anthony Kolade Adesugba, Abdu Ja’afaru Bambale
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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