Record Details

Credit Risk Management and Financial Performance of Selected Commercial Banks in Nigeria

Journal of Economic & Financial Studies

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Title Credit Risk Management and Financial Performance of Selected Commercial Banks in Nigeria
 
Creator Adekunle, Olusegun
Alalade, Samson Yimka
Agbatogun, Taofeek
Abimbola, Cole
 
Subject C21; C52; H25.
Credit risk management; Financial performance: Non-performing loan; Return on equity.
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Description The study examines the role of credit risk management in value creation process among commercial banks in Nigeria. The study reviews the concepts, theories, legal acts and standards relating to the credit risk management and then develops a conceptual model with four antecedents to credit risk. The study analyzes the impact of these antecedents such as antecedents are loan and advance loss provision, total loan and advances, non-performing loan and total asset on accounting Return on Equity (ROE) and Return on Asset (ROA). The panel data come from 10 commercial banks listed on Nigeria Stock Exchange (NSE) between 2006 and 2010. The results reveal that credit risk management has significant effect on financial performance of commercial banks and further recommend that maintaining minimum level of non-performing loans vis-à-vis provision for loans and advances will enhance financial performance through its positive effect on return on equity.
 
Publisher LAR Center Press
 
Contributor —
 
Date 2015-02-24
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
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Format application/pdf
 
Identifier http://journalofeconomics.org/index.php/site/article/view/73
10.18533/jefs.v3i01.73
 
Source Journal of Economic & Financial Studies; Vol 3, No 01 (2015): February; 01-09
2379-9471
2379-9463
 
Language eng
 
Relation http://journalofeconomics.org/index.php/site/article/view/73/255
 
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