Publication Date: 2023/06/24
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.
DOI: https://doi.org/10.5281/zenodo.8076638
PDF: https://ijirst.demo4.arinfotech.co/assets/upload/files/IJISRT23JUN548.pdf
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