The Influence of Credit Control on Non Performing Loan in Deposit Money Banks in Nigeria (A Survey of First Bank, United Bank for Africa and Union Bank of Nigeria)

Abstract

This study examined the influence of credit control on credit facilities and attendance influence on non performing loan deposit money banks in Nigeria. The study established the far reaching effects of credit control on non performing loan of the selected banks in Nigeria.  Secondary data were obtained from Central Bank of Nigeria’s statistical bulletin and Nigerian Deposit Insurance Company and National Bureau of Statistics on the selected banks.  These were analysed using Econometric View Version 7. Two hypotheses were formulated and tested. The result of regression analysis established the fact that there is significant relationship between non-performing loan and credit control. In addition, adherence to drawn down conditionality will significantly affect nonperforming loan. It is therefore recommended that policies already in place for the management of credit risk should be strengthened and subject to constant reviewed, while procedure should be in place to enforce loan conditionality before drawdown is allowed as to minimise the incidence non performance of credit facilities.

Keywords: Bank Credit, Credit Control,  Nonperforming Loan,  Risk Monitoring,Credit Facilities,  Repayment Term.