Effect of Credit Risk Management on Bank Performance in Nigeria

Abstract

This study examines the effect of sales credit risk management on bank performance (a study of selected DMBs) from 2009-2018, The study adopted the secondary method of acquiring data which was sourced from financial statements of the banks. Simple Regression Analysis was employed in the analysis of the data collected with the use of electronic views. The results revealed that there exists a positive and significant relationship between loan advances and return on asset while a negative and significant relationship between loan loss provision, non-performing; loan and return on asset. Consequently, it is recommended that company Banks should ensure that they deploy a well-established credit risk management framework. Banks practice prudent risk management and safeguarding the assets of the banks and protect the investors’ interests.