Strategic Importance of Credit Risk Management to Shareholders’ Wealth-Sustenance in Nigerian Banks: An Empirical Analysis

Sunday Abayomi Adebisi () and Ade Oyedijo ()
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Sunday Abayomi Adebisi: Lagos State University, Ojo, Nigeria
Ade Oyedijo: Lagos State University, Ojo, Nigeria

Acta Universitatis Danubius. OEconomica, 2012, issue 1(1), 131-148

Abstract: This study highlighted the roles and strategic importance of credit risk management in the banking industry vis-a-vis sustenance of shareholders’ wealth. The authors examined whether a reduction in the non-performing credits in banks’ loan portfolio will reveal a possible correlation between effective credit risk management administration and shareholder’s wealth. In testing this, secondary data were sourced from the randomly selected five banks financials (between the period of 2006 to 2010) with the use of relevant ratios. Two hypotheses were tested using multiple regression and correlation method. The result of hypothesis one showed that the calculated r – statistics (r =.429, p

Keywords: Non-performing credit; Credit risk management; Shareholders’ wealth; Risk asset management and Debt recovery (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (2)

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