IMPACT OF CREDIT RISK MANAGEMENT ON THE PERFORMANCE OF NIGERIA BANKS (2000-2019)

ABSTRACT
This study sought to investigate the impact of credit risk management on the performance of deposit money banks in Nigeria using five banks that have highest asset base. We adopted ex-post facto and analytical design. Time series data for the period (2000 to 2019) were collated from the annual reports and financial statement of selected deposit money banks in Nigeria.  The base year, 2000, is justified based on the adoption of universal banking system. Three hypotheses were proposed and tested using ordinary least square (OLS) regression model. Non-performing loan ratio was used as the independent variable, while the dependent variables were total loans and advances ratio (TLAR), return on assets (ROA), and return on equity (ROE). Descriptive statistics and regression technique were used to analyze the behavior of both dependent and independent variables. Other tests were done at 5% probability level of significance. The findings reveal that credit risk management had a positive and significant impact on total loans and advances, credit risk management had a positive and non- significant impact on the return on asset, credit risk management had a positive and non- significant impact on the return on equity of deposit money banks in Nigeria.It is recommended that bank managers need to put more efforts to credit risk management, especially to control the NPL. Evaluate critically borrowers’ ability to pay back. There is need to strengthen bank lending rate through effective and efficient regulation and supervisory framework. Banks should try as much as possible to strike a balance in their loan pricing decisions