ABSTRACT
The study investigated the effect of non-performing loans on the performance of commercial banks in Nigeria. To achieve this objective, the study specifically investigated the effect of Non• performing loan on profit after tax (PAT). effect of non-performing loan on Current ratio 1CR) and on commercial banks in Nigeria. 111e study restricted its scope to the period 2007-2017! and data usedfor the study was adopted from Union Bank pie and FCMB pie financial Reports for several years. The simple regression method was employed as the analytical tool. Findings show that Non-performing loan has a negative effect on both profit after tax (PAT) and current ratio (CR). The study therefore concluded that non-performing loans can jeopardize the financial results and liquidity of banks if not managed strategically. Hence,· the study recommends that Commercial banks should adopt and emphasized on effective and efficient non-performing loans management practices as well as deploying modern technology for effective monitoring of non• performing loans in other to ~1inimize the incidenceof non-performing loans facilities.
TABLE OF CONTENT
Cover page
Dedication
Acknowledgement
Declaration
Certification
Table of Content
List of Tables
Abstract
CHAPTER ONE INTRODUCTION
1.1 Background to the study 1
1.2 Statement of the problem 4
1.3 Objectives of the study 5
1.4 Research questions 5
1.5 Research hypothesis 6
1.6 . Significance of the .study 6
1.7 Scope of the study 7
1.8 Definition of terms ·
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Conceptual Framework 8
2.1.1 The Concept of Non-Performing Loans 8
2.1.2 Classification of Loans as Non-Performing 10
2.1.3 · Reclassification of non-performing loans-as performing 11
2.1.4 Causes of Non-Performing Loans 11
2.1.5 The Determinants of Non-Performing Loans 13
2.1.6 Effects of Non-Performing Loans on Banks Performance 16
2.1. 7 Solution to the Problem of Non-Performing Loans 17
2.2 Theoretical Framework 25
2.2.1 Loan Pricing Theory 25
2.2.2 Firm Characteristics Theories 25
2.2.3 Theories on Management Accounting 26
CHAPTER THREE METHODOLOGY
3.1 Research Desigri 37
3.2 Area of Study 37
3.3. Population of the· Study 37
3.4 Sample Size 37
3.5 Source of data and method of data collection 38
3.6 Validity of the Instrument 38
3.7 Reliability of the Instrument 38
3.8 Method of Data Analysis 38
3.9 ·Model Specification 39
CHAPTER FOUR
DATA PRESENTATION AND ANALYSES
4.1 Data Presentation 40
4.2 Descriptive Analysis 42
4.3 Test of Hypotheses 43
4.3.1 Test of Hypothesis I 43
4.3.2 Test of Hypothesis II 47
·
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 SUMMARY OF FINDINGS 50
5.2 CONCLUSION 50
5.3 RECOMMENDATIONS 51
REFERENCES
UDEKALU, N (2021). Effect Of Non-Performing Loans On The Performance Of Commercial Banks In Nigeria (A Study Of Selected Banks) . Mouau.afribary.org: Retrieved Oct 31, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-non-performing-loans-on-the-performance-of-commercial-banks-in-nigeria-a-study-of-selected-banks-7-2
NGOZI, UDEKALU. "Effect Of Non-Performing Loans On The Performance Of Commercial Banks In Nigeria (A Study Of Selected Banks) " Mouau.afribary.org. Mouau.afribary.org, 09 Mar. 2021, https://repository.mouau.edu.ng/work/view/effect-of-non-performing-loans-on-the-performance-of-commercial-banks-in-nigeria-a-study-of-selected-banks-7-2. Accessed 31 Oct. 2024.
NGOZI, UDEKALU. "Effect Of Non-Performing Loans On The Performance Of Commercial Banks In Nigeria (A Study Of Selected Banks) ". Mouau.afribary.org, Mouau.afribary.org, 09 Mar. 2021. Web. 31 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-non-performing-loans-on-the-performance-of-commercial-banks-in-nigeria-a-study-of-selected-banks-7-2 >.
NGOZI, UDEKALU. "Effect Of Non-Performing Loans On The Performance Of Commercial Banks In Nigeria (A Study Of Selected Banks) " Mouau.afribary.org (2021). Accessed 31 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-non-performing-loans-on-the-performance-of-commercial-banks-in-nigeria-a-study-of-selected-banks-7-2