ABSTRACT

This study sought to explore the Effect of Credit Management on Performance of Deposit

Money Banks in Nigeria. The target population was all the (15) Deposit Money Banks in

Nigeria out of which four banks (First Bank of Nigeria Plc, Union Bank of Nigeria, United

Bank of Africa, and Zenith Bank Plc,) were selected. The study used purposive sampling

technique to select the targeted bank. This study adopted ex post facto design in soliciting

information on Effect of Credit Management of Performance of Deposit Money Banks in

Nigeria. Secondary quantitative data ia.v collected from the Central bank of Nigeria (CBN)

Statistical Bulletin. The data collected was analysed with respect to the study objectives,

using simple regression on Eviews. The researcher concluded that banks would make losses

if credits are not granted to cu.stom ers and that as credit management increases, return on

equity also increases. It was also fOund that as loan loss provision increases, return on equity

decreases and as loan loss provi.cion reduces, return on equity increases. The study therefore

ascertained that credits or loans and advances are major source of income in banks as

represented by 90.6% of the total variation of profit after tax attributable by credit

management. It also concluded that there is positive significant relationship between credit

management and profit after tax of banks, loan loss provision ratio has negative significant

relationship with profit after tax of banks, there is significant effect of credit management on

return on equity of deposit money banks in Nigeria, credit management has significant effect

on return on assets of deposit money banks in Nigeria, and there is significant effect of credit

management on profit after lax of deposit money banks in Nigeria. Based on the findings, the

study recommended that; top management of banks should ensure that they sufficient capital

requirements to balance the loan ratio, banks should ensure that they sufficient performing

loans to increase their return on assets, and supervising authorities should ensure that banks

post pro/Its from only performing loans and that al/prudential guidelines are complied.