Credit Risk Management in Nigerian Banks (2005 – 2015)

Abstract

This study examines credit risk management in Nigerian banks. Content analysis approach was used to examine 15 banks over a ten years period. Findings from the study revealed that credit risk architecture significantly affects loan recovery of selected banks in Nigeria. Also GDP, NPL, interest rate and unemployment significantly affects the credit risk structure of banks in Nigeria. However inflation had insignificant effect on the credit risk structure of banks in Nigeria. We recommend that banks should enhance their credit risk architecture to always include collateral review and management, facility performance monitoring, quality reviews classification and risk portfolio reporting. Again, banks credit granting decision should be based on the result of risk assessment client’s solvency, available collateral, and transaction compliance with policies.

Keywords: Credit risk, Credit structure, and Content analysis, Credit Risk Architecture.