ABSTRACT

This study was carried out to investigate the effect of credit controls on the performance of deposit

money banks in Nigeria (a study of selected banks in Nigeria). Other specific objectives were; to

investigate on the effect of credit control on net interest margin of deposit money banks in Nigeria;

to examine the effect of credit control on return on assets of deposit money banks in Nigeria; to

ascertain the effect of credit control on return on equity of deposit money banks in Nigeria. The

study employed the uses of expos factor research design to collect existing variables and analyze

their relationship with other variables. The source of data was secondary from central bank of

Nigeria statistical bulletin. The study adopted regression analysis and times series data for the

selected banks the hypothesis were tested using Hausman test, f-statistic, while the reliability of

the model was ascertained with the help of unit root tests and co-integration test. The study among

other things found that there is negative insignificant relationship between deposit to assets ratio

and net interest margin of banks. This means that when the deposit to loan ratio is high, interest

margin will be low. There is positive insignificant relationship between loans to assets ratio and

net interest margin of banks. This means that as loans to assets increases, net interest margin also

increases. The study also found that credit controls have significant effect on net interest margin

of deposit money banks in Nigeria. The study therefore concluded that credit control has

significant effect on performance of banks in Nigeria. The study among others recommended that;

Banks should ensure that there are performing loans that would yield sufficient interest, and that

management of banks should comply with regulations on loans to assets so as to maintain a healthy

mix to boost return on assets.