The Effect of Credit Management On the Profitability of Selected Deposit Money Banks in Nigeria

By: AKINDIRAN, Dolapo TobiMaterial type: TextTextPublisher: Ibafo Accounting and Finance 2020Edition: Mrs. Joshua AbimbolaDescription: viii,54p. tablesSubject(s): Social Science -- Financial accountingSummary: The banking sector of a country plays an important part in thr growth and development of its economy. This study examined the effect of credit management on banks' profitability in Nigeria between 2009 and 2018. Data for the purpose of the study was extracted from banks' annual report and periodic economic report of central bank of Nigeria. Multiple regression analysis was adopted in analyzing the data. findings from the analysis revealed that there is a negative and strong correlation between credit management and banks' profitability in Nigeria, meaning that banks in Nigeria are yet to manage their credit portfolio as expected to enhance profitability. This study after researching top 10 banks among the 22 commercial banks recommends that banks should endeavor to follow central bank of Nigerians' guideline on credit management and reduce interest on loan in order to attract more customers, also that, terms of loans should be moderated to ease customers' repayment as at when due.
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The banking sector of a country plays an important part in thr growth and development of its economy. This study examined the effect of credit management on banks' profitability in Nigeria between 2009 and 2018. Data for the purpose of the study was extracted from banks' annual report and periodic economic report of central bank of Nigeria. Multiple regression analysis was adopted in analyzing the data. findings from the analysis revealed that there is a negative and strong correlation between credit management and banks' profitability in Nigeria, meaning that banks in Nigeria are yet to manage their credit portfolio as expected to enhance profitability. This study after researching top 10 banks among the 22 commercial banks recommends that banks should endeavor to follow central bank of Nigerians' guideline on credit management and reduce interest on loan in order to attract more customers, also that, terms of loans should be moderated to ease customers' repayment as at when due.

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