ABSTRACT
This study focuses on the effect of
credit management on the performance of deposit money banks in Nigeria (a case
study of first bank PLC). In the management set-up, credit control and
management is a vital and indispensable tool, which aid the performance of
financial and lending institution. While there is considerable evidence on the
link between credit management and performance of deposit money banks, the
causality between them remains a subject of investigation. This study used a
time series variable computed from First bank of Nigeria annual report covering
a period of 10 years that is from 2007 to 2016. The study utilized data from
secondary sources. To this end, two hypothesis were developed and tested using
simple regression model since it enables the test or prediction of one variable
on the basis of another variable. The results of the study discovered that the
estimated coefficient of the regression parameters have positive signs and thus
conforms to the a-priori expectation. The implication of this sign is that the
dependent variables - return on assets and return on equity are positively
influenced by loan loss provision. An increase in the explanatory variable
(loan loss provision) would bring about an increase in return on assets and
return on equity. Meaning that loan loss provision has a significant positive
effect on return on assets and return on equity of deposit money banks in
Nigeria. Thus this study recommends that there should be loan loss
provisioning, strict adherence to the principle of good lending, there should be
loan loss monitoring and an effective internal control system should be put in
place capable of frustrating and stopping stqffs manipulation of bank credit
policies for selfish ends.
OGWOS, O (2021). Effect Of Credit Management On The Performance Of Deposit Money Banks In Nigeria. (A Study Of First Bank Plc) . Mouau.afribary.org: Retrieved Nov 26, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-credit-management-on-the-performance-of-deposit-money-banks-in-nigeria-a-study-of-first-bank-plc-7-2
OKUDE, OGWOS. "Effect Of Credit Management On The Performance Of Deposit Money Banks In Nigeria. (A Study Of First Bank Plc) " Mouau.afribary.org. Mouau.afribary.org, 07 Jul. 2021, https://repository.mouau.edu.ng/work/view/effect-of-credit-management-on-the-performance-of-deposit-money-banks-in-nigeria-a-study-of-first-bank-plc-7-2. Accessed 26 Nov. 2024.
OKUDE, OGWOS. "Effect Of Credit Management On The Performance Of Deposit Money Banks In Nigeria. (A Study Of First Bank Plc) ". Mouau.afribary.org, Mouau.afribary.org, 07 Jul. 2021. Web. 26 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-credit-management-on-the-performance-of-deposit-money-banks-in-nigeria-a-study-of-first-bank-plc-7-2 >.
OKUDE, OGWOS. "Effect Of Credit Management On The Performance Of Deposit Money Banks In Nigeria. (A Study Of First Bank Plc) " Mouau.afribary.org (2021). Accessed 26 Nov. 2024. https://repository.mouau.edu.ng/work/view/effect-of-credit-management-on-the-performance-of-deposit-money-banks-in-nigeria-a-study-of-first-bank-plc-7-2