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Credit Risk and Financial Performance of Deposit Money Banks in Nigeria. Case Study of Access Bank Plc

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Listed:
  • Helen Oluwatoyin Adebayo
  • Segun Idowu Adeniyi
  • Miriam Nguavese Nyikyaa
  • Andrew Jatau Yohanna

Abstract

Credit risk is a treat to going concern of deposit money banks but without giving credit to customers, it will be practically impossible for banks to create money and remain in business. This study investigates how loans and advances to individual and corporate organization that are past due affect return on capital employed by banks. It is a case study work that focuses on Access Bank Plc. Data for the analysis was gathered from financial accounts and report. Findings show that loans and advances to corporate organization that are past due have significant effect on financial performance of deposit money banks. We recommend among others that the regulatory authority should encourage banks to be publishing the names of individuals or corporate organization that failed to meet their debt obligation as at when due in their financial accounts and report. This may serve as a tool to reduce risky credit assets.

Suggested Citation

  • Helen Oluwatoyin Adebayo & Segun Idowu Adeniyi & Miriam Nguavese Nyikyaa & Andrew Jatau Yohanna, 2020. "Credit Risk and Financial Performance of Deposit Money Banks in Nigeria. Case Study of Access Bank Plc," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 6(3), pages 109-112, September.
    • Handle: RePEc:khe:scajes:v:6:y:2020:i:3:p:109-112
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    References listed on IDEAS

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    1. Juliana Stanley Isanzu, 2017. "The Impact of Credit Risk on the Financial Performance of Chinese Banks," Journal of International Business Research and Marketing, Inovatus Services Ltd., vol. 2(3), pages 14-17, March.
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    More about this item

    Keywords

    Loans; advances; return on capital employed;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers

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