L. E. Igbinovia

The study examines the effect of credit risk management on the performance of Deposit Money Banks (DMBs) in Nigeria between 2014 and 2023. The study found out that non- performing loans has a negative and insignificant impact on the performance of deposit money banks in Nigeria. Capital adequacy ratio has a positive and significant impact on the performance of deposit money banks in Nigeria. Loan loss provisions has a negative and insignificant effect on the performance of deposit money banks in Nigeria. Loan to deposit ratio has a positive and significant effect on the performance of deposit money banks in Nigeria. The study recommends that government should improve regulatory frameworks to guarantee compliance with risk management procedures and sensible lending requirements. A risk-based supervisory approach that emphasizes evaluating the caliber and sufficiency of banks' credit risk management frameworks ought to be used. The Nigerian government ought to encourage industry cooperation. This will help to create platforms for information exchange and teamwork between Deposit Money Banks (DMBs), authorities, trade groups, and academic institutions in order to share best practices and lessons discovered.

The study investigated credit risk management and deposit money bank performance
in Nigeria utilizing panel data from ten (10) conveniently sampled deposit money banks for a
period of 5 years (2014 to 2018). The rationale for the present study is predicated on the fact
that risk is a critical consideration for every decision of deposit money banks and also a
major determinant of their performance. The study employed the Ordinary Least Squares techniques on variables such as
loans and advances (LAA), non-performing loans (NPL), capital adequacy ratio (CAR) and
return on assets (ROA). The study showed evidence that loans and advances (LAA) and
capital adequacy ratio (CAR) had a positive and statistically significant relationship with the
performance of deposit money banks in Nigeria, while non-performing loans (NPL) had a
negative and statistically insignificant relationship with the performance of deposit money
banks in Nigeria. The study recommends among others that, management needs to be cautious in
setting up a credit policy that will not negatively affect the operations of their banks in order
to ensure judicious utilization of deposits and maximization of profit. Also, the study
recommends that Nigerian Government need to ensure adequate energy facilities should be
embraced in the different sectors of the Nigerian economy as well as promoting energy- efficient products and appropriate practices at the side of the end users and energy
generation. Furthermore, CBN for policy making purpose should regularly assess the lending
attitudes of deposit money banks and effective cash management policies to avoid insolvency
in the financial system. Also, to increase credit volume, the interest rate policy must be
considered within the frame of economic circumstances of the time for low interest rate does
facilitate quick repayment and drastically minimize debt failure. Finally, determining the
credit worthiness of a customer whether individual or corporate organization must be
carefully planned. A rush into the approval of loan without sourcing adequate and relevant
information on the prospective borrowers must be avoided if the bank wishes to circumvent
delays in the recovery of debt.