Vol. 10(3), pp. 79-85, June 2022 , 2022.

ISSN: 2384-6151

https://doi.org/10.14662/ijebm2022100

 

 

Full Length Research

 

Impact of Credit Risk Management on the Financial Performance of Eco Bank Nigeria PLC

 

1Enadeghe Best Iyobor, 2Amana Labija Yusuf, 3Alfa Mohammed Danlami and 4Lawal Olaniyi Babatunde

 

1Department of Banking and Finance, Federal Polytechnic Bida, Niger state  

2&4Department of Accountancy, Federal Polytechnic Bida, Niger state  

3Department of Social Science, Federal Polytechnic Bida, Niger state  

Corresponding author: Enadeghe Best Iyobor, enadeghebestiy@gmail.com, Phone Number: +2348032112269

 

 

Accepted 29 May 2022

Abstract

 

The study examined the effect of credit risk management on the performance of Eco Bank Nigeria Plc for the period of 2011-2020. The study employed time series analysis while ordinary least square technique was applied on three credit risks management variables, Loans and Advances (LA), Non-performing Loans (NPL) and Loan Loss Provision (LLP) to examine the performance of Eco Bank Plc. Results reveal that while loans and advances and loan loss provision has positive impact, Non-performing Loans have a negative effect on the financial performance of Eco Bank Plc. The study recommends that stakeholders should conduct an in-depth review of current rules and guidelines dealings with the provision of loans by the bank and adequate loan loss provision should be maintained to promote the financial performance of the bank so as to enhance the confidence of the stakeholders.

 

Keywords: Non-performing loans (NPL), Loans and Advances (LA), Loan Loss Provision (LLP), Return on Assets (ROA)

 

Cite This Article As: Enadeghe, B. I., Amana, L. Y., Alfa, M.D., Lawal, O.B. (2022).Impact of Credit Risk Management on the Financial Performance of Eco Bank Nigeria PLC. Inter. J. Econ. Bus. Manage.10(3): 79-85