This study examines the effect of the credit risk ratio on the financial performance of deposit money banks in Nigeria. Ex Post Facto research design was employed for the study. Sample sizes of five banks were selected from twenty banks quoted on the Nigerian Stock Exchange. Data were extracted from annual reports and accounts of the selected banks from 2010 to 2019. Using E view statistical tool to test the hypothesis, the study found that credit risk ratio significantly influences the financial performance of quoted deposit money banks in Nigeria It was recommended that bank managers should constantly engage in rigorous credit analysis, checking, default rate, the proportion of non performing loans, regularly or at least quarterly to enable them to maintain high asset quality to enhance the financial performance. Oraka, Azubike O | Ebubechukwu, Jacinta O "Effect of Liquidity Risk on Performance of Deposit Money Banks in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd42388.pdf Paper URL: https://www.ijtsrd.commanagement/other/42388/effect-of-liquidity-risk-on-performance-of-deposit-money-banks-in-nigeria/oraka-azubike-o
International Journal of Trend in Scientific Research and Development (IJTSRD)
Volume 5 Issue 4, May-June 2021 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470
@ IJTSRD | Unique Paper ID – IJTSRD42388 | Volume – 5 | Issue – 4 | May-June 2021
Page 653
Effect of Liquidity Risk on Performance of
Deposit Money Banks in Nigeria
Oraka, Azubike O1; Ebubechukwu, Jacinta O2
1Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria
2Department of Accountancy, Federal Polytechnic, Nekede, Nigeria
ABSTRACT
This study examines the effect of the credit risk ratio on the financial
performance of deposit money banks in Nigeria. Ex-Post Facto research design
was employed for the study. Sample sizes of five banks were selected from
twenty banks quoted on the Nigerian Stock Exchange. Data were extracted
from annual reports and accounts of the selected banks from 2010 to 2019.
Using E-view statistical tool to test the hypothesis, the study found that credit
risk ratio significantly influences the financial performance of quoted deposit
money banks in Nigeria It was recommended that bank managers should
constantly engage in rigorous credit analysis, checking, default rate, the
proportion of non-performing loans, regularly or at least quarterly to enable
them to maintain high asset quality to enhance the financial performance.
KEYWORDS: Liquidity risk, Credit risk ratio, and net interest margin
How to cite this paper: Oraka, Azubike O
| Ebubechukwu, Jacinta O "Effect of
Liquidity Risk on Performance of Deposit
Money Banks
in
Nigeria" Published in
International Journal
of Trend in Scientific
Research
and
Development (ijtsrd),
ISSN:
2456-6470,
Volume-5 | Issue-4,
June
2021,
pp.653-658,
URL:
www.ijtsrd.com/papers/ijtsrd42388.pdf
Copyright © 2021 by author (s) and
International Journal of Trend in Scientific
Research and Development Journal. This
is an Open Access article distributed
under the terms of
the
Crea