Effect Of Non-Performing Loans On The Performance Of Commercial Banks In Nigeria (A Study Of First Bank Of Nigeria Plc And Union Bank Of Nigeria Plc. 2010-2014)
ABSTRACT
This study was' carried out to
ascertain and examine the impact of non-performing loans on the performance of
commercial banks in Nigeria. Secondary data was obtained from the financial
statement of Union Bank of Nigeria plc. and First bank of Nigeria plc. and it
was analyzed using sample regression. The empirical analysis result revealed
that non-performing loans' has ,significant impact on the profitability of
commercial banks in Nigeria and also non-performing loans' has sign i/leant
impact on the liquidity of commercial banks in Nigeria. It was recommended that
Commercial banks should develop credit procedure, policies' and anal analytical
capabilities for handling non-performing loan, strategies on how' to attract
and return more deposits' so as to further improve on their lending
performance, ensure good planning which encompasses budgeting, reviews and
incentives and formulate critical, realistic and comprehensive strategic and
financial plans. There should be closer consultation and cooperation between commercial
banks' and regulatory authorities'. Also, potential borrowers should be critically
assessed to ascertain their credit worthiness before they are given loans,
Above all, management of' First bank and Union bank should know their customer’s
before granting loans to them, in fact adhering strictly to the 5C of credit in modern banking practice.
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OKEREAFOR, K (2021). Effect Of Non-Performing Loans On The Performance Of Commercial Banks In Nigeria (A Study Of First Bank Of Nigeria Plc And Union Bank Of Nigeria Plc. 2010-2014). Repository.mouau.edu.ng: Retrieved Nov 26, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-non-performing-loans-on-the-performance-of-commercial-banks-in-nigeria-a-study-of-first-bank-of-nigeria-plc-and-union-bank-of-nigeria-plc-2010-2014-7-2
KELECHI, OKEREAFOR. "Effect Of Non-Performing Loans On The Performance Of Commercial Banks In Nigeria (A Study Of First Bank Of Nigeria Plc And Union Bank Of Nigeria Plc. 2010-2014)" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 16 Jul. 2021, https://repository.mouau.edu.ng/work/view/effect-of-non-performing-loans-on-the-performance-of-commercial-banks-in-nigeria-a-study-of-first-bank-of-nigeria-plc-and-union-bank-of-nigeria-plc-2010-2014-7-2. Accessed 26 Nov. 2024.
KELECHI, OKEREAFOR. "Effect Of Non-Performing Loans On The Performance Of Commercial Banks In Nigeria (A Study Of First Bank Of Nigeria Plc And Union Bank Of Nigeria Plc. 2010-2014)". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 16 Jul. 2021. Web. 26 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-non-performing-loans-on-the-performance-of-commercial-banks-in-nigeria-a-study-of-first-bank-of-nigeria-plc-and-union-bank-of-nigeria-plc-2010-2014-7-2 >.
KELECHI, OKEREAFOR. "Effect Of Non-Performing Loans On The Performance Of Commercial Banks In Nigeria (A Study Of First Bank Of Nigeria Plc And Union Bank Of Nigeria Plc. 2010-2014)" Repository.mouau.edu.ng (2021). Accessed 26 Nov. 2024. https://repository.mouau.edu.ng/work/view/effect-of-non-performing-loans-on-the-performance-of-commercial-banks-in-nigeria-a-study-of-first-bank-of-nigeria-plc-and-union-bank-of-nigeria-plc-2010-2014-7-2