THE EFFECTS OF CREDIT MANAGEMENT ON PROFITABILITY OF NIGERIAN BANKS

THE EFFECTS OF CREDIT MANAGEMENT ON PROFITABILITY OF NIGERIAN BANKS

 

ABSTRACT
One of the major problems confronting the Nigerian
banking industry today is the increasing incidence of loan
defaults and consequent loan losses which manifested on
the profitability of the banks, with huge uncollectible
loans and advances. This study therefore, examines the
effects of loans and advances on the profitability of
Nigerian banks.
The methodology used in the research includes
secondary sources and primary sources of data collection.
The data collected were analyzed using Correlation
Coefficient, Pearson Product Moment Correlation and
other statistical tools to establish trends and relationship
between the variables. Furthermore, graphs were used in
the interpretation of the data collected.
The study found out that at 5 percent level of
significant; the calculated value of z is grater than the
tabulated value in most of the banks considered in the
study. Therefore, this leads to the results that there
is significant effect between loans and advances and its
profitability. In order words this means that there is a
significant effect between the way the banks manage their
credits portfolio and the profitability of the banks.
It is the recommendation of the study that there is
the need for a strong internal control system to strengthen
the credit policy on the management of the banks’ credit
facility. This involves the need for thorough checking of
loan applications at various stages of granting loans and
advances in the banks. Furthermore, banks must ensure
strict tradeoff between their liquidity and profitability. This
will ensure strict compliance with the money being kept by
the banks and the amount granted for loans and
advances.

TABLE OF CONTENT

Title page- – – – – – – – – i
Approval page – – – – – – – -ii
Dedication – – – – – – – – -iii
Acknowledgement – – – – – – – -iv
Abstract – – – – – – – – – -v
Table of content – – – – – – – -vi

CHAPTER ONE
INTRODUCTION – – – – – – – -1
1.0 Background of the study – – – – -1
1.1 Statement of the problem – – – – -5
1.2 Purpose of the study – – – – – -6
1.3 Significance of the study – – – – -8
1.4 Research questions – – – – – -9
1.5 Scope of the study – – – – – – -10

CHAPTER TWO

LITERATURE REVIEW – – – – – – -11

CHAPTER THREE

Research methodology – – – – – – -39
Design of study – – – – – – – -40

CHAPTER FOUR

Presentation, analysis and interpretation of data – -48

CHAPTER FIVE

Summary of findings – – – – – – -60
Conclusion – – – – – – – – -61
Recommendations – – – – – – – -62
Suggestions for further research – – – – -64
References – – – – – – – – -65
Appendix I – – – – — – – – -68
Questionnaire. – – – – – – – -69

THE EFFECTS OF CREDIT MANAGEMENT ON PROFITABILITY OF NIGERIAN BANKS

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