Impact of Credit Management on Bank Performance in Nigeria
Impact of Credit Management on Bank Performance in Nigeria

Author: Collins Alobari

Publisher:

Published: 2018

Total Pages: 7

ISBN-13:

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As with any financial institution, the biggest risk in bank is lending money and not getting it back. This study examined the impact of credit management and bank performance in Nigeria. The study adopted cross sectional survey design. The population of the study consisted of all management staffs of commercial banks operating in Nigeria. The sample sizes of eleven (11) select commercial banks were considered by systematic technique. The Purposive sampling technique was adopted; hence six respondents were administered questionnaire (Bank Manager and five senior staff) from each bank to make up a 66 respondents for the study. Multiple regression analysis was adopted for the study to determine the influence/impacts of credit management variables (Credit Appraisal, Credit Risk Control, and Collection policy) on bank performance. The study revealed that credit management has a significant impact on bank performance in Nigeria. The study also revealed that among the credit management variables considered, credit risk control has the highest driving force for bring about an effect financial performance of bank in Nigeria. It was recommended that financial institution should not only take credit management serious, but should recognised the role of credit risk section if they aim at increasing profitability.

The Bank Credit Analysis Handbook
The Bank Credit Analysis Handbook

Author: Jonathan Golin

Publisher: John Wiley & Sons

Published: 2013-03-18

Total Pages: 748

ISBN-13: 0470829443

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A hands-on guide to the theory and practice of bank credit analysis and ratings In this revised edition, Jonathan Golin and Philippe Delhaise expand on the role of bank credit analysts and the methodology of their practice. Offering investors and practitioners an insider's perspective on how rating agencies assign all-important credit ratings to banks, the book is updated to reflect today's environment of increased oversight and demands for greater transparency. It includes international case studies of bank credit analysis, suggestions and insights for understanding and complying with the Basel Accords, techniques for reviewing asset quality on both quantitative and qualitative bases, explores the restructuring of distressed banks, and much more. Features charts, graphs, and spreadsheet illustrations to further explain topics discussed in the text Includes international case studies from North America, Asia, and Europe that offer readers a global perspective Offers coverage of the Basel Accords on Capital Adequacy and Liquidity and shares the authors' view that a bank could be compliant under those and other regulations without being creditworthy A uniquely practical guide to bank credit analysis as it is currently practiced around the world, The Bank Credit Analysis Handbook, Second Edition is a must-have resource for equity analysts, credit analysts, and bankers, as well as wealth managers and investors.

Credit Risk Management
Credit Risk Management

Author: J. N. Taiwo

Publisher:

Published: 2018

Total Pages: 7

ISBN-13:

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This study is an empirical investigation into the quantitative effect of credit risk management on the performance of Nigeria's Deposit Money Banks (DMBs) and Bank lending growth over the period of 17 years (1998- 2014). Secondary data for empirical analysis was obtained from CBN Statistical bulletin 2014 and World Bank (WDI) 2015. The study employed multiple linear regression model to analyze the time series data. The result showed that sound credit management strategies can boost investors and savers confidence in banks and lead to a growth in funds for loans and advances which leads to increased bank profitability.. The findings revealed that credit risk management has an insignificant impact on the growth of total loans and advances by Nigerian Deposit money banks. The study therefore recommends that DMBs in Nigeria should strictly adhere to their credit appraisal policies which ensures that only credit worthy borrowers have access to loanable funds. Banks are to ensure that funds are allocated to borrowers with decent to high credit ratings.

The Effect of Credit Risk on the Performance of Commercial Banks in Nigeria
The Effect of Credit Risk on the Performance of Commercial Banks in Nigeria

Author: Olawale Luqman

Publisher:

Published: 2014

Total Pages: 18

ISBN-13:

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This research work studied the effect of credit risk on commercial banks performance in Nigeria. The study is motivated by the damaging effect of classified assets on bank capitalization and would be of utmost relevance as it addresses how credit risk affects banks' profitability using a robust sample and the findings would serve as the basis to provide policy measures to the various stakeholders on how to tackle the credit risk in order to enhance the quality of banks' assets and reduce bank risk. Secondary data source was explored in presenting the facts of the situation. The secondary data are obtained from annual reports, relevant literatures and CBN's statistical Bulletin publication. The result shows that the ratio of loan and advances to total deposit negatively relate to profitability though not significant at 5% and that the ratio Non-performing loan to loan & Advances negatively relate to profitability at 5% level of significant. This study shows that there is a significant relationship between bank performance (in terms of profitability) and credit risk management (in terms of loan performance). Loans and advances and non-performing loans are major variables in determining asset quality of a bank. Some of the recommendations made in this study are; management need to be cautious in setting up a credit policy that will not negatively affects profitability and also they need to know how credit policy affects the operation of their banks to ensure judicious utilization of deposits and maximization of profit. Improper credit risk management reduce the bank profitability, affects the quality of its assets and increase loan losses and non-performing loan which may eventually lead to financial distress. CBN for policy purposes should regularly assess the lending attitudes of financial institutions. One direct way is to assess the degree of credit crunch by isolating the impact of supply side of loan from the demand side taking into account the opinion of the firms about banks' lending attitude. Finally, strengthening the securities market will have a positive impact on the overall development of the banking sector by increasing competitiveness in the financial sector.

Determinants of Bank Profitability
Determinants of Bank Profitability

Author: Kolade Sunday Adesina

Publisher:

Published: 2015

Total Pages:

ISBN-13:

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This study investigated the impact of bank-specific variables on bank profitability in the Nigerian banking industry. In investigating the impact, a regression is used. Using an unbalanced panel data set comprising 65 observations of 15 banks over the 2006-2010 period, the regression results confirm and differ from some previous findings. The results reveal that bank capital adequacy, bank credit portfolio size, and bank credit risk are significant determinants of bank profitability in Nigeria. It also reveals that bank size, customers' deposit, and management efficiency (measured by operating expenses/total asset ratio) are insignificant determinants of bank profitability in Nigeria. These results imply that Nigerian banks should focus more on increasing their equity-total asset ratio and credit risk management due to its impact on profitability. Therefore, the research provided evidence that supports the Central Bank of Nigeria's policy of bank recapitalisation and credit management aimed at ensuring profitability and liquidity in the Nigerian banking sector.

Risk Management and Corporate Governance
Risk Management and Corporate Governance

Author: Organization for Economic Cooperation and Development

Publisher: OCDE

Published: 2014

Total Pages: 0

ISBN-13: 9789264208629

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This sixth peer review of the OECD Principles of Corporate Governance analyses the corporate governance framework and practices relating to corporate risk management, in the private sector and in state-owned enterprises. The review covers 26 jurisdictions and is based on a general survey of all participating jurisdictions in December 2012, as well as an in-depth review of corporate risk management in Norway, Singapore and Switzerland. The report finds that while risk-taking is a fundamental driving force in business and entrepreneurship, the cost of risk management failures is often underestimated, both externally and internally, including the cost in terms of management time needed to rectify the situation. The reports thus concludes that corporate governance should ensure that risks are understood, managed, and, when appropriate, communicated.

Credit Risk Management
Credit Risk Management

Author: Hong Kong Institute of Bankers (HKIB)

Publisher: John Wiley & Sons

Published: 2012-09-04

Total Pages: 470

ISBN-13: 0470827491

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The importance of managing credit and credit risks carefully and appropriately cannot be overestimated. The very success or failure of a bank and the banking industry in general may well depend on how credit risk is handled. Banking professionals must be fully versed in the risks associated with credit operations and how to manage those risks. This up-to-date volume is an invaluable reference and study tool that delves deep into issues associated with credit risk management. Credit Risk Management from the Hong Kong Institute of Bankers (HKIB)discusses the various ways through which banks manage risks. Essential for candidates studying for the HKIB Associateship Examination, it can also help those who want to acquire a deeper understanding of how and why banks make decisions and set up processes that lower their risk. Topics covered in this book include: Active credit portfolio management Risk management, pricing, and capital adequacy Capital requirements for banks Approaches to credit risk management Structural models and probability of default Techniques to determine loss given default Derivatives and structured products

The Impact of Bank Credit on Industrial Development of Nigeria
The Impact of Bank Credit on Industrial Development of Nigeria

Author: Damian Nwosu

Publisher: GRIN Verlag

Published: 2013-06-27

Total Pages: 23

ISBN-13: 3656453160

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Research Paper (postgraduate) from the year 2011 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, , language: English, abstract: The ongoing financial crisis has reinforced the importance of capital in the industrial development and economic growth of a country. In the last two years, industries have closed down owing to lack of capital occasioned by the global financial meltdown. From America, London, other European countries, Asia and Africa, governments have had to intervene in other to bail out some ailing industries and forestall total collapse of the economy. These show the importance of credit either from bank or any other means to industries. Recognizing the importance of capital in economic growth, Mackinnon and Shaw (1973), outlined the procedures for strengthening the financial sector of an economy so as to enable it play the all important role of providing capital for industrial development. Among the basic explanations for this is that the financial sector serves to reallocate funds from the supply side, given their investment opportunities, to the demand side with a shortage of funds. Thus, an economy with well-developed financial institutions will be better able to allocate resources to industries that yield the highest returns. The manufacturing sector is a catalyst to the modern economy and has a many dynamic benefits that are crucial for economic transformation, (Loto, 2005). The manufacturing sector is a leading sector. It helps to increase productivity in relation to import substitution, export expansion, creating foreign exchange earning capacity, raising employment and per capital income which according to Loto, (2005), widens the scope of consumption in dynamic patterns. Ogwuma, (1995) asserts that the manufacturing sector promotes the growth of investment at a faster rate than any other sector of the economy as well as wider and more efficient linkages among different sectors.