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Non-Performing Loans and Performance of Deposits Money Banks in Nigeria

Author

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  • Okoli, Chukwudi Francis

    (Department of Accountancy, Chukwuemeka Odumegwu Ojukwu University, Anambra State, Nigeria.)

  • Ifurueze, Meshack S

    (Department of Accountancy, Chukwuemeka Odumegwu Ojukwu University, Anambra State, Nigeria.)

  • Nweze, Augustine U.

    (Department of Accountancy, Enugu State University of Science and Technology, Enugu State, Nigeria)

Abstract

The study examined the relationship between non-performing loans and performance of deposits money banks in Nigeria. The specific objectives of the study are to: determine the relationship between non-performing loans to total loans and performance of deposits money banks; ascertain the relationship between liquid assets to total assets and performance of deposits money banks. Ten (10) banks were selected from the Nigeria Stock Exchange (NSE). The data used were secondary data and were drawn from 2009 to 2018. The data used were sourced from the bank’s annual report and Nigerian Stock Exchange fact book. The data collected were analysed using correlation matrix. The results show that non-performing loans to total loans have no significant relationship with performance of deposits money banks in Nigeria; whereas liquid assets to total assets have significant relationship with performance of deposits money banks in Nigeria. The study, therefore among others recommends that the Regulatory agency such as the Central Bank of Nigeria and the Nigerian Deposit Insurance Corporation should formulate rules that will reduce the occurrence of Loans for which repayment of principal or interest has been overdue for three months or more. Since non-performing loans to total loans have negative relationship with performance of deposits money banks in Nigeria.

Suggested Citation

  • Okoli, Chukwudi Francis & Ifurueze, Meshack S & Nweze, Augustine U., 2020. "Non-Performing Loans and Performance of Deposits Money Banks in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(10), pages 201-211, October.
    • Handle: RePEc:bcp:journl:v:4:y:2020:i:10:p:201-211
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    References listed on IDEAS

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