ABSTRACT

 This studyfocuses on the effect ofcredit management on the performance oflisted banks in Nigeria. Sound ci edit management is a prerequisite for a financial institution’s stability and continuing profitability, while deteriorating credit quality is the mostfrequent cause ofpoor financial perfoi mance and condition. The study made used of an ex-post facto research design. The data collected were then tabulated and analyzed using the simple regression analysis. The study tevealed that credit debt collection has a positive and significant effect on the profit margin. It also revealed that debt ratio has a positive and significant effect on the profit margin. Additional the study revealed that gearing ratio has a positive and significant effect on the profit margin. Itfinally revealed that cash flow has a negative and insignificant effect on the profit margin. Conclusively, Credit management is important part in firm financial management decision. The optimal of credit management could be achieved by firms that manage the trade-offbetween profit margin and liquidity. It is recommended that j management shouldput in place a sound credit management policy that will in effect prevent i late payment by debtors and the outcome ofthis may leads to increased profitability. It is therefore necessaiy to apply sound credit debt collection policy to effectively recover lost fund. Management should also ensure that debts are paid in time so that the firm will not be place in financial constraints as its fund will not be loss through bad debts. Through this avenue the profit margin will increasedsignificantly. Finally, credit policy should be in check and should be implemented, as it will lead to credit administration and monitoring which will reducefinancial losses and this will also counter bad debts and thefirmpi ofitability realized |