IMPACT OF CREDIT MANAGEMENT ON THE PROFITABILITY OF DEPOSIT MONEY BANKS IN NIGERIA
Abstract
The study examined the nexus between credit management and profitability (ROA) of Deposit money Banks (DMBs) in Nigeria context for the period of 5 years (2015-2019). Secondary data were sourced from central Bank of Nigeria statistical bulletins and the annual report of GTBank Plc.The study employed multiple regression technique in analyzing the data collected. The analysis was done using ordinary least square.The study found that loans and advances and loan loss provision have positive and insignificant effect on profitability, while non-performing loan has a negative and insignificant effect on profitability. The overall estimates of the two regressions have good fit and are adequate statistically. It was recommended that DMBs should put in place sound credit management policies and practices, ensure recoverable loan and advances are provided for loan loss for desired credit risk exposure and increasedprofitability.
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