International Journal of Research & Review (www.ijrrjournal.com) 202 Vol.5; Issue: 10; October 2018 International Journal of Research and Review www.ijrrjournal.com E-ISSN: 2349-9788; P-ISSN: 2454-2237 Research Paper An Analysis of the Relationship between Credit Risk Management and Bank Performance in Nigeria: A Case Study of Fidelity Bank Nigeria PLC Ndubuisi Chinedu Jonathan 1 , Amedu Jimoh Michael 2 1 Ph. D Research Scholar, NnamdiAzikiwe University Awka, Nigeria. 2 Lecturer Accountancy Department, Edo State Polytechnic Usen, Nigeria. Corresponding Author: Ndubuisi Chinedu Jonathan ABSTRACT One of the recommendations of Basel Committee on Banking Supervision was credit risk management which is the optimization of the bank’s risk-adjusted rate of return by maintaining credit risk exposure within acceptable level. This research therefore is set to analyse the relationship between credit risk management and bank performance in Nigeria, using Fidelity Bank Nigeria PLC as a case study. Descriptive survey research was used and data were collected via Annual reports of the sampled bank within the period of 2010-2016. The populations of the research were the Deposit Money Banks. Pearson Coefficient of Correlation was the statistical tool used to analyse the hypotheses and that was done with the aid of Statistical Package for Social Sciences (SPSS). The researcher concluded that there is no significant relationship between credit risk management and bank performance in Nigeria. However there were traces of weak negative relationships which keen interest should be given to because of sensitive nature of the banking sector. Keywords: Credit Risk Management, Bank Performance 1. INTRODUCTION In every financial intermediation, risk is always a major factor to be considered. In attaining performance, a great threat to financial business and its effective management should also be considered. In making most decisions as regards credit in financial institutions, management is exposed to some level of risk, hence the need for effective and timely risk management policy. It involves identification, quantifying and managing the uncertainties that firm faces as outcomes of financial intermediation activities are uncertain which in turn result to risk (Adesugba & Bambale, 2016). Risk comes to play as a result strategic failure, operational failure, financial failure, market failure and disruptions, environmental disaster and regulatory violations. Risk is usually measured using statistical concepts that are related to the unknown future. Credit risk arises when the financial borrower defaults in his obligations in accordance with agreed terms. The objective of credit risk management is to optimize the bank’s risk-adjusted rate of return by maintaining credit risk exposure within acceptable level (Basel Committee on Banking Supervision, 2000). The existence of banks is not only to accept deposits, they also grant credit facilities. Business world largely depends on banks to fulfill their running finance requirements as well as the payment or receiving the amount of transactions or to make up the shortage of funds for the completion of transaction or performing any other business operation, therefore inevitably exposed to credit risk. One of the