CREDIT MANAGEMENT AND LIQUIDITY OF DEPOSIT MONEY BANKS: EMPIRICAL EVIDENCE FROM ZENITH BANK PLC

The study examined credit management and liquidity of deposit money banks: empirical evidence from zenith bank plc. Ex-post facto research designs. Secondary methods of data collection were used in gathering relevant data for this research work. Secondary source was the use of financial summary from Zenith Bank Plc2015-2024. The researcher adopted longitudinal trend survey method using ex-post facto model. Data were collected, coded and analyzed using simple linear regression to test hypothesis and simple percentages and frequency tables were used to analyze the responses from respondents. The study concluded that there is no significant influence of loan and advance, nonperforming loans, loan loss provisions and collateral on current ratio of Zenith bank Plc in Nigeria. It was recommended that Zenith Bank should intensify its efforts in monitoring and recovering loans and advances. Effective recovery strategies including restructuring, legal enforcement, and use of recovery agents will ensure that loans do not convert into non-performing assets, thereby safeguarding liquidity. Zenith Bank should continuously upgrade its credit appraisal systems to assess the creditworthiness of borrowers. Collateral should not only be adequate in value but also easily enforceable in the event of default. The bank must ensure that legal documentation and asset verification are properly handled to make recovery swift and less costly when necessary.