Authors :
Akande, FolorunsoIlesanmi; Maduemem, Nkemjika Salome
Volume/Issue :
Volume 8 - 2023, Issue 6 - June
Google Scholar :
https://bit.ly/3TmGbDi
Scribd :
https://tinyurl.com/3j4yv2ek
DOI :
https://doi.org/10.5281/zenodo.8076638
Abstract :
The banking industry is important as it
contributes to the financial performance of numerous
sectors of the economy. Banks provide deposit services,
advisory as well as loan facilities. The exchange rate is
currently rising and this in turn affects banks’ interest
rates and adversely reduces the purchasing power of
citizens. The objective of this study was to examine the
effect of credit management on the loan performance of
selected deposit money banks in Ogun State, Nigeria.
This study adopted cross-sectional survey research
design. The examined independent variable is credit
management, measured by credit terms and conditions,
credit collection policy, credit policy, credit control,
credit appraisal/documentation, and credit monitoring
while the dependent variable is loan performance,
measured by timely loan repayment rates, number of
loans closed by customer and number of loans extended.
Primary data for the variableswere sourced from
questionnaires and analysis was run with SPSS (IBM
Statistical Package for the Social Sciences). The findings
of the study revealed that there was a significant effect of
credit management on loan performance of selected
DMBs in Ogun, Nigeria excluding the moderating
variables. The results of the study further revealed that
credit management negatively affected loan
performance, inclusive of moderating variables in
Nigeria. The study concluded that credit management
have a positive relationship on the loan performance of
selected DMBs in Ogun, Nigeria. It was recommended
that the CBN ensure the adequate monitoring of
borrowers on a database. The study also recommended
that public and private stakeholders should ensure the
properly utilization and repay their loan facilities.
Keywords :
Credit Management, Loan Performance, Nigeria, Deposit Money Banks.
The banking industry is important as it
contributes to the financial performance of numerous
sectors of the economy. Banks provide deposit services,
advisory as well as loan facilities. The exchange rate is
currently rising and this in turn affects banks’ interest
rates and adversely reduces the purchasing power of
citizens. The objective of this study was to examine the
effect of credit management on the loan performance of
selected deposit money banks in Ogun State, Nigeria.
This study adopted cross-sectional survey research
design. The examined independent variable is credit
management, measured by credit terms and conditions,
credit collection policy, credit policy, credit control,
credit appraisal/documentation, and credit monitoring
while the dependent variable is loan performance,
measured by timely loan repayment rates, number of
loans closed by customer and number of loans extended.
Primary data for the variableswere sourced from
questionnaires and analysis was run with SPSS (IBM
Statistical Package for the Social Sciences). The findings
of the study revealed that there was a significant effect of
credit management on loan performance of selected
DMBs in Ogun, Nigeria excluding the moderating
variables. The results of the study further revealed that
credit management negatively affected loan
performance, inclusive of moderating variables in
Nigeria. The study concluded that credit management
have a positive relationship on the loan performance of
selected DMBs in Ogun, Nigeria. It was recommended
that the CBN ensure the adequate monitoring of
borrowers on a database. The study also recommended
that public and private stakeholders should ensure the
properly utilization and repay their loan facilities.
Keywords :
Credit Management, Loan Performance, Nigeria, Deposit Money Banks.
