Credit Risk and Financial Performance of Deposit Money Banks in Nigeria. Case Study of Access Bank Plc
Credit Risk and Financial Performance of Deposit Money Banks in Nigeria. Case Study of Access Bank Plc

Summary/Abstract: Credit risk is a treat to going concern of deposit money banks but without giving credit to customers, it will be practically impossible for banks to create money and remain in business. This study investigates how loans and advances to individual and corporate organization that are past due affect return on capital employed by banks. It is a case study work that focuses on Access Bank Plc. Data for the analysis was gathered from financial accounts and report. Findings show that loans and advances to corporate organization that are past due have significant effect on financial performance of deposit money banks. We recommend among others that the regulatory authority should encourage banks to be publishing the names of individuals or corporate organization that failed to meet their debt obligation as at when due in their financial accounts and report. This may serve as a tool to reduce risky credit assets.

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