Impact of Credit Management on Non-Performing Loans in Nigeria Commercial Banks
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Date
2019
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Volume Title
Publisher
KJBM
Abstract
Banks occupy vital position in every economy Nevertheless, there exists corporate governance failure in banks that results largely from customers sophistication and non-performing loans. The study examined credit management and non-performing loans of commercial banks in Nigeria. Ordered probit regression was used test the impact of bank specific control measures on non-performing loans in Nigerian commercial banks and vector autoregressive model was employed to examine the impact of macro-economic variables on non-performing loans in Nigerian commercial banks. The result of the regression analysis revealed that monitoring of loans usage by borrowers has significant impact on non-performing loans at 10 level of significance. The study concluded that bank specific control measures have significant impact on non-performing loans in Nigerian commercial banks. Banks should therefore ensure that credit officers perform periodic follow-ups on borrowers to ensure that loans are used for intended purposes to reduce the incidence of non - performing loans.
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Keywords
Loans, Management, Non-performing, Commercial banks