ABSTRACT
The study examined the effect of non-performing loans on the performance of selected commercial banks in Nigeria. It specifically determined the effect of non• performing loans, provisions for loan loss and advances on the performance of banks measured by return on assets and return on equity. The study utilized secondary data obtained from the annual report of commercial bank in Nigeria. The data were analysed using the simple regression model and objective three which is to examine the trend between non-performing .loans and commercial banks performance in Nigeria was analysed with descriptive analysis. The specific finding of the work is that return on assets and return on equity have inverse relationship with non• performing loans and advances. The conclusion therefore is that the effect of non• performing loans on commercial banks performance is negative and cannot be underestimated and poses a fundamental danger to the very existence of the banks as corporate business enterprises. Based on the above findings, the work recommends that banks should maintain high credit standards while the apex bank and the regulatory agencies should maintain high surveillance on banks credit operations.
TABLE OF CONTENT
CHAPTER ONE: INTRODUCTION
Background to the study
1.2 Statement of the problem 1
1.3 Objectives of the study 3
1.4 Research Questions 5
1.5 Research Hypothesis 5
1.6 Scope of the study 6
1.7 Limitations 6
1.8 Definition of terms 7
CHAPTER TWO: LITERATURE REVIEW
2.1 The conceptual framework 9
2.1.1 The concept of non-performing Loans 9
2.1.2 Classification of loans as non =perfonning 12
2.1.3 Reclassification of non -performing loans as performing 14
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2.1.4 Causes of non - performing loans 14
2.1.5 The Determinants of non-performing loans 17
2.1.6 The Determinants of non-performing loans 20
2.1.7 Solution to the Problem of non-performing loans 22
2.2 Theoretical Framework 32
2.2.1 Loan Pricing Theory 32
2.2.2 Firm Characteristics Theories 33
2.2.4 Bank Risk Management Theory 35
2.3 Empirical Review 36
CHAPTERTHREE: METHODOLOGY
3.1 Research design 47
3.2 Sources of Data 47
3.3 Population of the Study and Method of Data Collection 47
3.4 Sample Size 47
3.5 Techniques of the data analysis 48
3.6 Model Specification 48
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1.1 Data presentation 50
4.2 Data analysis 50
CHAPTER FIVE
5.0 SUMMARY, CONCLUSION AND RECOiv1MENDATION
5.1 Summary of findings 56
5.2 Conclusions 56
5.3 Recommendations 56
MBAGWU, D (2021). Effect Of Non-Performing Loans On The Performance Of Commercial Banks In Nigeria . Mouau.afribary.org: Retrieved Oct 30, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-non-performing-loans-on-the-performance-of-commercial-banks-in-nigeria-7-2
DESMOND, MBAGWU. "Effect Of Non-Performing Loans On The Performance Of Commercial Banks In Nigeria " Mouau.afribary.org. Mouau.afribary.org, 15 Jan. 2021, https://repository.mouau.edu.ng/work/view/effect-of-non-performing-loans-on-the-performance-of-commercial-banks-in-nigeria-7-2. Accessed 30 Oct. 2024.
DESMOND, MBAGWU. "Effect Of Non-Performing Loans On The Performance Of Commercial Banks In Nigeria ". Mouau.afribary.org, Mouau.afribary.org, 15 Jan. 2021. Web. 30 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-non-performing-loans-on-the-performance-of-commercial-banks-in-nigeria-7-2 >.
DESMOND, MBAGWU. "Effect Of Non-Performing Loans On The Performance Of Commercial Banks In Nigeria " Mouau.afribary.org (2021). Accessed 30 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-non-performing-loans-on-the-performance-of-commercial-banks-in-nigeria-7-2