TO GET THE COMPLETE JOURNAL/THESIS FOR TOPIC BELOW,
CALL: 08168759420, 08068231953
WHATSAPP: 08137701720
EFFECT OF CREDIT RISK ON PERFORMANCE OF COMMERCIAL BANKS IN NIGERIA
Abstract: The objective of study was to assess the effect of credit risk on financial performance of commercial banks in Nigeria by using panel co-integration estimation. The researcher used secondary data of selected seven commercial banks in Nigeria which have business operation history from the period 2004 to 2019. The bank specific Variables – measures of credit risk considered under this study were Nonperforming loans ratio, Loan to Deposit, Capital adequacy ratio and Bank size. In this study Inflation was considered as the only independent macroeconomic variable that can measure credit risk. The profitability measure – return on asset was considered as dependent variable. The secondary data were analyzed by using panel co-integration regression analysis completed with full modified ordinary least square (FMOLS). The findings of the study shows that the bank specific and macroeconomic variables that measured credit risk have a significant effect on the financial performance of Commercial Banks in Nigeria.
Keywords: Credit risk, Performance of Commercial banks, Return on Asset