ABSTRACT
This study focuses on the effect of credit
management on the performance of listed banks in Nigeria. Sound credit
management is a prerequisite for a financial institution’s stability and
continuing profitability, while deteriorating credit quality is the most
frequent cause ofpoor financial performance and condition. The study made used
of an ex-postfacto research design. The data collected were then tabulated and
analyzed using the simple regression analysis. The study revealed 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 cashflow
has a negative and insignificant effect on the profit margin. Conclusively,
Credit management is importantpart infirm financial management decision. The
optimal of credit management could be achieved byfirms that manage the
trade-offbetween profit margin and liquidity. It is recommended that management
should put in place a sound credit management policy that will in effect
prevent late payment by debtors and the outcome ofthis may leads to increasedprofitability.
It is therefore necessary to apply sound credit debt collection policy to
effectively recover lost fund. Managementshould also ensure that debts are paid
in time so that thefirm will not be place in financial constraints as its fund
will not be loss through bad debts. Through this avenue the profit margin will
increased significantly. Finally, credit policy should be in check and should
be implemented, as it will lead to credit administration and monitoring which
will reduce financial losses and this will also counter bad debts and
thefirmprofitability realized
IHEJIRIKA, C (2024). n Effect of Credit Management on the Performance of Listed Banks In Nigeria:- Ihejirika Peace C. Mouau.afribary.org: Retrieved Sep 08, 2024, from https://repository.mouau.edu.ng/work/view/n-effect-of-credit-management-on-the-performance-of-listed-banks-in-nigeria-ihejirika-peace-c-7-2
CHINECHEREM, IHEJIRIKA. "n Effect of Credit Management on the Performance of Listed Banks In Nigeria:- Ihejirika Peace C" Mouau.afribary.org. Mouau.afribary.org, 26 Jul. 2024, https://repository.mouau.edu.ng/work/view/n-effect-of-credit-management-on-the-performance-of-listed-banks-in-nigeria-ihejirika-peace-c-7-2. Accessed 08 Sep. 2024.
CHINECHEREM, IHEJIRIKA. "n Effect of Credit Management on the Performance of Listed Banks In Nigeria:- Ihejirika Peace C". Mouau.afribary.org, Mouau.afribary.org, 26 Jul. 2024. Web. 08 Sep. 2024. < https://repository.mouau.edu.ng/work/view/n-effect-of-credit-management-on-the-performance-of-listed-banks-in-nigeria-ihejirika-peace-c-7-2 >.
CHINECHEREM, IHEJIRIKA. "n Effect of Credit Management on the Performance of Listed Banks In Nigeria:- Ihejirika Peace C" Mouau.afribary.org (2024). Accessed 08 Sep. 2024. https://repository.mouau.edu.ng/work/view/n-effect-of-credit-management-on-the-performance-of-listed-banks-in-nigeria-ihejirika-peace-c-7-2