Does credit risk management impact the financial performance of commercial banks?-Reference-Cited by-同舟云学术

Does credit risk management impact the financial performance of commercial banks?

Published:2023-05-15 Issue:2 Volume:5 Page:55-66
ISSN:2687-2293
Container-title:International Journal of Business Ecosystem & Strategy (2687-2293)
language:
Short-container-title:IJBES

Author:

Fadun Olajide Solomon^ORCID,Silwimba Peter^ORCID

Abstract

Commercial banks accept deposits and lend money for investment and consumption. This study used five (5) first-tier banks in Nigeria as a case study to analyze the effects of credit risk management on the financial performance of commercial banks. The study examined fifteen (15) years' worth of panel data (from 2005 to 2019), taken from the audited financial reports of five first-tier listed banks. Deposit Money Banks (DMBs) are the only banks used, and they are all listed on the Nigerian Stock Exchange. Non-performing loans (NPL) and expected credit loss impairment provisions (ECL) were utilized in this study as indicators of credit risk management. At the same time, return on assets (ROA) was employed to measure financial performance.

Publisher

Bussecon International Academy

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