THE IMPACT OF CREDIT RISK MANAGEMENT ON THE FINANCIAL PERFORMANCE OF FINANCIAL INSTITUTIONS IN NIGERIA / DJOUFACK TSAFACK VEROVIANE CHARONE; SUPERVISOR: ASST. PROF. DR. MURAD ABDURAHMAN BEIN

Yazar: Katkıda bulunan(lar):Dil: İngilizce 2023Tanım: 59 sheets; 31 cm. Includes CDİçerik türü:
  • text
Ortam türü:
  • unmediated
Taşıyıcı türü:
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Konu(lar): Tez notu: Thesis (MSc) - Cyprus International University. Institute of Graduate Studies and Research Accounting and Finance Department Özet: ABSTRACT The banking industry has grown significantly in the Nigerian economy, and it now has a significant effect on the provision of credit. Credit risks, or the danger of accruing losses as a consequence of debtors' failure to repay loans or other types of credit, are most commonly faced in the financial industry, notably by organizations such as banks. Lending is the lifeblood of the banking sector, and loans and advances are the most valuable assets since they account for the majority of operational revenue. Loans, on the other hand, put banks in the highest danger. The purpose of the study was to find out the impact of credit risk management on the financial performance of financial institutions listed on the Nigerian stock market. A purpose sampling method was used to select eleven (11) financial institutions listed in the Nigerian stock market from the period of 2006 to 2021. The Stata software was used to analyses the panel data collected into pooled, fixed, and random effects. The study revealed that the non-performing loan ratio, deposits to asset ratio, loan to deposit ratio, capital adequacy ratio, and deposit growth have a positive effect on ROA. The study found that non-performing loans, deposits to asset ratio, loan to deposit ratio, and capital adequacy ratio all have a positive effect on ROE. It was found that loan to-asset, the age, and the size of the financial institutions have a negative effect on ROA. It was found that the age of the financial institution had a statistically significant effect on the return on equity (ROE). Banks' use of in-dept23h credit evaluation during the lending process helps shape a strategy that does more than just lower credit risk; it also boosts performance and competitiveness. There is a positive effect of nonperforming loans on the economy as a whole, not only on bank earnings. So, Nigeria's governing bodies need to come up with ways to improve credit risk management and slow the growth of loans that aren't being paid back in the banking sector. Keywords: Credit risk management, Deposit to asset ratio, financial performance, financial institutions, Nigeria
Materyal türü: Thesis
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Materyal türü Geçerli Kütüphane Koleksiyon Yer Numarası Durum Notlar İade tarihi Barkod Materyal Ayırtmaları
Thesis Thesis CIU LIBRARY Tez Koleksiyonu Tez Koleksiyonu YL 2743 C43 2023 (Rafa gözat(Aşağıda açılır)) Kullanılabilir Accounting and Finance Department T3111
Suppl. CD Suppl. CD CIU LIBRARY Görsel İşitsel YL 2743 C43 2023 (Rafa gözat(Aşağıda açılır)) Kullanılabilir Accounting and Finance Department CDT3111
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Thesis (MSc) - Cyprus International University. Institute of Graduate Studies and Research Accounting and Finance Department

Includes bibliography (sheets 44-48)

ABSTRACT
The banking industry has grown significantly in the Nigerian economy, and it now has
a significant effect on the provision of credit. Credit risks, or the danger of accruing
losses as a consequence of debtors' failure to repay loans or other types of credit, are
most commonly faced in the financial industry, notably by organizations such as
banks. Lending is the lifeblood of the banking sector, and loans and advances are the
most valuable assets since they account for the majority of operational revenue. Loans,
on the other hand, put banks in the highest danger.
The purpose of the study was to find out the impact of credit risk management on the
financial performance of financial institutions listed on the Nigerian stock market. A
purpose sampling method was used to select eleven (11) financial institutions listed in
the Nigerian stock market from the period of 2006 to 2021. The Stata software was
used to analyses the panel data collected into pooled, fixed, and random effects.
The study revealed that the non-performing loan ratio, deposits to asset ratio, loan to
deposit ratio, capital adequacy ratio, and deposit growth have a positive effect on ROA.
The study found that non-performing loans, deposits to asset ratio, loan to deposit ratio,
and capital adequacy ratio all have a positive effect on ROE. It was found that loan to-asset, the age, and the size of the financial institutions have a negative effect on
ROA. It was found that the age of the financial institution had a statistically significant
effect on the return on equity (ROE).
Banks' use of in-dept23h credit evaluation during the lending process helps shape a
strategy that does more than just lower credit risk; it also boosts performance and
competitiveness. There is a positive effect of nonperforming loans on the economy as
a whole, not only on bank earnings. So, Nigeria's governing bodies need to come up
with ways to improve credit risk management and slow the growth of loans that aren't
being paid back in the banking sector.
Keywords: Credit risk management, Deposit to asset ratio, financial performance,
financial institutions, Nigeria

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