ABSTRACT

The banking sector in recent time has been characterized by persistent rise in bank failures; the impact which has undoubtedly shaken the whole economy, this problem which we are aware that cannot be unconnected with the increase in the non-repayment of loans by bank customers and poor credit management on the side of the bankers. Though, attempt was made to find out the solution to the problem or a way to minimize the ugly trend. It is therefore in the light of this topic; An evaluation of credit risk management and control among commercial banks in Nigeria. Also to look into some of the risk associated in giving credit and how to control these risks, by effective recovery of bad debts is desirable since it will enhance bank's credit portfolio quality, reduce write offs and improve banks liquidity and profitability. And the purpose of research work is limited on some selected commercial banks in Umuahia. The major findings made in the course of this study commercial banks in performing the role of financial intermediary, pool funds from the surplus units to finance the deficit units for investment purposes. In the course of lending of the pool fund a lot of risk is involved, which is identified and how these risk can be controlled. The data collected were analyzed, tabulated and presented using simple descriptive statistical tool. The hypothesis was tested using multiple regressions at 0.01 significant level. The result compared with the critical value rejecting the null hypothesis. If calculated value was higher than the critical value and vice versa. On recommendation banks should consider the type of project proposed for the customer and also stipulate on the credit guideline and policy.