Relationship between Credit Risk Management and the Performance of Money Deposit Banks in Nigeria

Adebayo, Adebayo

doi:10.9790/5933-0802023848

Cited by 8 publications

(9 citation statements)

References 8 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Ebenezer, Islam, Yusoff, and Rahman (2019) and Kola, Gjipali, and Sula (2019)endorsed the relationship of CRM and bank's performance and concluded that macroeconomic indicators of GDP, inflation rate, real effective exchange rate and interest rate are affecting factors. Ajao and Oseyomon (2019) have selected CAR, NPL ratio, LLP ratio, ROA to measure the performance due to CRM and find out that there is substantial contrary relationship between CAR and DMB's profitability. Darwish and Abdeldayem (2019) analyzed banking risk management and analyzed interest rate as risk.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

“…Naili and Lahrichi (2022) endorsed that aftershocks of Global Financial Crunch of 2007-2008 has proved the terrible requirement of the implementation of CRM and "riskiest" risk which has different names, structures and locations but the causes were the same; as financial issues of liquidity, interest rate, market, foreign exchange, solvency, operational and compliance. Ajao and Oseyomon (2019) also declared that credit, its speedy growth, vigilant loan processing and pricing is important practice to survive, and it can be possible by strict CRM, especially in emerging economies. Naili and Lahrichi (2022) emphasized that "still" credit risk as the core and deep-rooted risk of the banking industry.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

See 1 more Smart Citation

Credit Risk Management Can Gear Up Bank Performance – Moderating Effect of Interest Rate in Developed Countries

Saleem

Masood

2023

iRASD J. Eco.

View full text Add to dashboard Cite

This research explores the role of interest rate as a moderator in credit risk management, influencing the performance of banking industry in selected developed countries using a two-step GMM model. The annual data of the top 10 banks of the selected 10 developed countries ranging from 2001 to 2020 was used. The developed countries or G-10 are Belgium, Canada, France, Germany, Italy, Japan, Sweden, Switzerland, the United Kingdom, and the United States, which are the originators of the Basel Accords. Bank performance, proxied by ROA, ROE, ATO, and NPM, is dependent. Interest rate is a moderator, independent and indexed, developed after netting off lending interest rate (LIR), interest rate spread (IRS) & net interest margin (NIM). The credit risk management index (CRM index) was derived after netting off the effects of extra ordinary financing of net loans and leases, negativity of nonperforming loans, and secured cushioning of risk-weighted assets. The results confirmed that CRM improves the growth of banking, especially in case of ROA, ROE, and NPM, improves more by the induction of the moderator of the interest rate index and enhances more with the induction of the interaction. This research guides for rearranging the determinants of CRM, identifying loopholes of CRM, fixing interest rates, and looking after natural fixation of interest rate. CRM policies should be stringent, security analysis must be centralized, offered interest rate must be natural and savings must be used in a productive usage rather than multiple financing at lower interest rates. The research contributed two indexes, the CRM index and the interest rate index (IR index), which were developed by NPLs, NLLs, RWAs and LIR, IRS, and NIM, respectively. The results highlighted that loanable fund theory is starving without remedial measures of CRM for leakage of “credit”, drainage of “capital” or seepage of “money”. The researcher selected ten developed countries with the 10 highest scoring banks in a period of 2001-2020 and used a two-stage GMM technique.

show abstract

Section: Hypotheses Developmentmentioning

confidence: 99%

Section: Hypotheses Developmentmentioning

confidence: 99%

Credit Risk Management Can Gear Up Bank Performance – Moderating Effect of Interest Rate in Developed Countries

Saleem

Masood

2023

iRASD J. Eco.

View full text Add to dashboard Cite

show abstract

“…Recent researches done globally focusing on Islamic Banking have diverse findings associated with methodological, conceptual and contextual differences. For instance, Ebimobowei and Tebepah (2021) investigated how deposit money banks in Nigeria performed financially. The findings indicated a favorable and significant correlation between bank size and deposit money banks' return on assets in Nigeria.…”

Section: Statement Of the Problemmentioning

confidence: 99%

Effect of Capital Adequacy on Financial Performance of Islamic Banks in Kenya

DAHIR,

THUO

2023

strategicjournals.com

View full text Add to dashboard Cite

The study's objective was to ascertain the impact of capital sufficiency on the financial performance of Islamic banks in Kenya. efficiency structure theory was used as guiding theory for the study. The study's research design used was causal research design. The five commercial Islamic banks in Kenya comprised the research population. A census study was used because the population was manageable in size. The study was conducted from 2017 to 2021 during a period of 5 years. Secondary data was used in this study. The Central Bank of Kenya and the Islamic banks' audited yearly financial accounts provide the secondary data for this. Regression, correlation, and descriptive statistics were used for data analysis. Due of the panel structure of the data, STATA was the program used. The study found that capital adequacy (CAR) was positively correlated to changes in financial performance. Based on the study's findings that there was a strong and positive correlation between ROE and capital sufficiency, commercial banks in Kenya should make sure they are in compliance with capital adequacy regulations. The study recommended that commercial banks in Kenya invest more on reducing the total operating expenses for this would help in increasing the level of operating income.

show abstract

“…The study established that unsecured commercial banks loan amount and loan interest rates had a positive significant effect on financial performance of Savings and Credit Cooperative Societies. Unsecured commercial banks loan tenure had a negative significant effect on financial performance of Savings and Credit Co-operative Societies Adebayo (2017) sought to investigate how check-off loans impacts performance of Nigerian banks. The study targeted twenty-one (21) Money Deposit Banks in Nigeria from which: First Bank Nigeria Plc, Eco Bank Plc, GTBank Plc, Access Bank Plc and United Bank for Africa Plc were selected.…”

Section: Check-off Lendingmentioning

confidence: 99%

Effect of Lending on the Financial Performance of Commercial Banks Listed at the Nairobi Securities Exchange

ZAKAYO

ONDABU²

2022

IJF

View full text Add to dashboard Cite

ABSTRACT Purpose: This study aimed at determining how check-off lending, group lending, collateral lending and mobile lending affects the financial performance of commercial banks in Kenya. A descriptive survey research design was employed in the study with the target population comprising of 12 commercial banks listed in Nairobi Securities Exchange. Methodology: A total of 48 employees in the credit and lending department in the selected commercial bank formed the target respondents and with the study utilizing both primary and secondary data. Primary data was gathered through five point Likert scale questionnaires while secondary data was collected from audited reports and CBK financial reports for the period between 2017 and 2021. Both descriptive and inferential statistics were utilized in analyzing the data collected. SPSS and multi-linear regression model were used to analyze the data and which was presented by use of tables and figures. Findings: The study established that check-off lending, group lending, collateral lending and mobile lending positively and significantly affects financial performance of commercial. The results bear the implications that increasing the any of the independent variable with one unit results to an increase in the levels of financial performance with the respective beta value. Unique contribution to theory, practice and policy: The study provides that commercial banks’ performance can be enhanced through various lending practices that formed the independent variables of this study and hence resonates with commercial banks to take lending seriously as it is a cash cow to their products’ offering.

show abstract

Relationship between Credit Risk Management and the Performance of Money Deposit Banks in Nigeria

Cited by 8 publications

References 8 publications

Credit Risk Management Can Gear Up Bank Performance – Moderating Effect of Interest Rate in Developed Countries

Credit Risk Management Can Gear Up Bank Performance – Moderating Effect of Interest Rate in Developed Countries

Effect of Capital Adequacy on Financial Performance of Islamic Banks in Kenya

Effect of Lending on the Financial Performance of Commercial Banks Listed at the Nairobi Securities Exchange

Contact Info

Product

Resources

About