Effect Of Credit Risk Management On The Performance Of The Nigerian Banking Industry (A Case Study Of First Bank PLC 2002- 2012)

ABSTRACT

This study examines the “Effect ofCredit Risk Management on the Performance of the Nigeria Banking Industry. (A Case Study of First Bank PLC 2002-2012)”. Secondary data were collected, which includes Return on Assets (profit), Non performing loans, Provision for loan loss, Total deposit, and Classified loan. The data were mainly sourced from annual financial report of First Bank Pic. The study employed ordinary least square method regression techniques to analyze the data. The result shows that non-performing loans and provision for loan loss were negatively related to profit while Total deposit and classified loan were positively related to profit. We recommended that banks in Nigerian should enhance their capacity in credit analysis and loan administration and also regulatory authority should pay more attention to banks compliance to relevant provisions of the bank and other financial institutions Act (1999) and prudential guidelines.