The Effects of Credits Risk Management on Financial Performance of Money Deposit Banks in Nigeria

This study is an attempt to empirically examine “the effect of credit risk management on financial performance of deposit money banks in Nigeria. The major objective of this study is to examine the effect of capital adequacy on the financial performance of Nigerian Deposit Money Banks. The researcher conducts field survey and administered questionnaire to gather data. A total number of 54 respondents were sampled and formed the analysis of responses. The researcher decide to apply the Taro Yamani formula to determine the appropriate number of sample size that could represents general opinion of the total population. The investigation reveals that that there is significance relationship between capital adequacy and financial performance of Nigerian Listed Deposit Money Banks, It has been scientifically proven that there is significance influence between management efficiency and the financial performance of Nigerian Listed Deposit Money Banks and also there is significance relationship between liquidity management and financial performance of Nigerian Listed Deposit Money Banks. The study recommended that commercial banks should try to keep their operational cost low as this negates their profits margin thus leading to low financial performance. This is depicted by the strong effect of earnings on financial performance.
Keywords: Credit, Non-performing loan, loan and advances, performance, Risk.