THE EFFECT OF CREDIT RISK MANAGEMENT ON PROFITABILITY OF BANKS IN NIGERIA A CASE STUDY OF ECO BANK NIGERIA PLC.

 

ABSTRACT

This study is based on "The Effect of Credit Risk Management on profitability of Banks in Nigeria". The main objective of the study was to investigate both the positive and negative effects credit risk management on banks profitability growth and development.

The researcher in the course of study, made use of questionnaires as a method of data gathering, and the data was statistically analyzed, using simple percentage and chi-square method of analysis. The data were analysed using a non-parametric statistics.

Hence, the study shows that there is a relationship between bank's effective credit risk management and profitability; there IS correlation between credit risk management on bank performance and Eco bank's; that effective evaluation and measurement of credit risk by bank's management enhanced bank lending ability.

The study however recommends that Eco Bank Nigeria Plc should encourage training and development for staff in Credit risk management department to enhance consistent service delivery.

 

TABLE OF CONTENTS

 

CHAPTER ONE

INTRODUCTION

1.1   Background to the Study

1.2   Statement of the Problem

1.3   Objectives of the Study

1.4   Significance of the Study

1.5   Relevant Research Questions

1.6    Statement of Hypotheses

1.7   Scope and Limitation of the Study

1.8    Operational Definition of Terms

 

CHAPTER TWO

LITERATURE REVIEW

2.1   Introduction

2.2   Conceptual Framework

2.3   Introduction of Basel Committee

2.4   Credit Risk Analysis Techniques in Eco Bank Pic

2.5   Risk and Uncertainty in Project Appraisal

2.6   Factors Responsible For Uncertainty

2.7   Analysis of Risk and Uncertainty in Decision- Making Process of Project Selection in Eco Bank Plc

2.8   Risk and Sensitivity Analyses

2.9    Risk Control Analysis

2.10 Types of Credit Risk

2.11 Credit Risk Process

2.12  Changing Business Model of Credit Risk in the Banking Industry

2.13 New Risks and Credit Risk Management Challenges

2.14  Practical Areas of Focus for Risk Managers and Supervisors

2.15  Sources of Risk

2.16 Key Concepts in Risk Management

2.17Risk and Return Analysis

2.18Factors Causing Credit Risk

2.19 Credit Risk Management: Policies and Procedures

2.20 Risk Management and the Banking Industry

 

CHAPTER THREE

RESEARCH METHODOLOGY

3.1   Introduction

3.2   Restatement of the Research Questions

3.3   Restatement of Hypotheses

3.4   Sources of Data

3.5   Population of Study

3.6   Sample and Sampling Techniques

3.7   Research Instrument

3.8    Questionnaires Administration

 

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS OF RESULTS

4.1      Introduction

4.2     Characteristics of the Study Population

4.3     Testing Statement of Hypotheses

 

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSIONS RECOMMENDATIONS AND SUGGESTIONS FOR FURTHER STUDIES

5.1    Summary of Findings

5.2    Conclusion

5.3    Recommendation

5.4    Suggested Areas for Further Studies

Appendix: Questionnaire

 

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