Credit Risk Management and Performance of Selected Deposit Money Banks in Nigeria DOI Open Access

Ifeyinwa E. Law-Biaduo,

Kelechi Chijindu Nnamdi,

Uchenna U. Fort-Edward

и другие.

Asian Journal of Economics Business and Accounting, Год журнала: 2024, Номер 24(12), С. 277 - 287

Опубликована: Дек. 17, 2024

This study examined credit management and performance of selected Deposit Money Banks in Nigeria. The time series data was sourced from the audited financial statements banks. Non-performing Loans (NPLs), Loan-to-Deposit Ratio (LDR), Liquidity (LQR), Capital Adequacy (CAR) were used as a proxy management. In contrast, return on equity (ROE) to measure performance. stationarity tested using LLC, IPS, ADF PP tests. Using panel regression fixed effects random techniques, found that had positive significant effect MDB MDBs under reviewed period. From indicators, liquidity ratio (LQR) have but insignificant ROE. findings also revealed NPL has further capital adequacy negatively significantly affected Loan deposit (LDR) negative recommended, among other things, maintain stable meet obligations, banks should endeavor operate within CBN policy minimum requirement at 30%, which can be achieved by shortening asset maturity, lengthening liability maturities, possibly issuing more equity. this indicate effective policies are essential for improving DMBs Policymakers focus enforcing regulations ensure withstand risks without compromising profitability. Also, maintaining non-performing loans regulatory thresholds is crucial sustaining quality stability banking sector.

Язык: Английский

Credit Risk Management and Performance of Selected Deposit Money Banks in Nigeria DOI Open Access

Ifeyinwa E. Law-Biaduo,

Kelechi Chijindu Nnamdi,

Uchenna U. Fort-Edward

и другие.

Asian Journal of Economics Business and Accounting, Год журнала: 2024, Номер 24(12), С. 277 - 287

Опубликована: Дек. 17, 2024

This study examined credit management and performance of selected Deposit Money Banks in Nigeria. The time series data was sourced from the audited financial statements banks. Non-performing Loans (NPLs), Loan-to-Deposit Ratio (LDR), Liquidity (LQR), Capital Adequacy (CAR) were used as a proxy management. In contrast, return on equity (ROE) to measure performance. stationarity tested using LLC, IPS, ADF PP tests. Using panel regression fixed effects random techniques, found that had positive significant effect MDB MDBs under reviewed period. From indicators, liquidity ratio (LQR) have but insignificant ROE. findings also revealed NPL has further capital adequacy negatively significantly affected Loan deposit (LDR) negative recommended, among other things, maintain stable meet obligations, banks should endeavor operate within CBN policy minimum requirement at 30%, which can be achieved by shortening asset maturity, lengthening liability maturities, possibly issuing more equity. this indicate effective policies are essential for improving DMBs Policymakers focus enforcing regulations ensure withstand risks without compromising profitability. Also, maintaining non-performing loans regulatory thresholds is crucial sustaining quality stability banking sector.

Язык: Английский

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