Relationship between Credit Risk Management and the Performance of Money Deposit Banks in Nigeria

Abstract

The overall objective of the study was to investigate the relationship between credit risk management and the performance of money deposit banks in Nigeria which necessitated a formulation of some hypotheses such as there is no significant relationship between Loan Loss Provision and Financial Performance of Money Deposit Banks in Nigeria among others. The population of the study is the entire twenty one (21) Money Deposit Banks in all the six geo-political zones in Nigeria out of which the following banks were selected using Simple Random Sampling technique to serve as target population for the study: First Money Deposit Banks in Nigeria. Consequently, it is of crucial importance that banks practice prudent credit risk management and play within acceptable level of safety so as to ensure enhance profitability (ROE) and protect the investors' interest and depositors' funds. Better credit risk management results in better bank performance.