Nigerian Journal of Banking and Financial Issues (NJBFI)

CREDIT RISK MANAGEMENT PRACTICES, PROFITABILITY AND EFFICIENCY: EVIDENCE FROM NON-INTEREST LISTED DEPOSIT MONEY BANK IN NIGERIA

Abstract

Ineffective credit risk management has been identified as the major problem faced by the banking industry in Nigeria. This problem has negatively affected their performance. A number of measures have been put in place   to eradicate these problems. Yet, the problem still persists and questionable to the effect it has on performance. Based on this, this study aimed at determining the effect of credit risk management practices on the profitability and efficiency of non-interest bank in Nigeria. Expo facto research design was chosen for this study and data was sourced    from 2018 to 2023 using Jaiz Bank plc as population of the study. Independent variable of this study is the credit risk management while performance remained dependent variable. Ordinary least square regression was employed and used as a method of data analysis. Thus, result showed that there exist a positive linkage and significant influence between credit risk management and profitability while credit risk management has no statistical influence on   efficiency. Thus, non-interest bank were recommended to build strong and effective credit risk management team so as to boost their profitability.