© 2013. Abdullahi Sani Rufai. This is a research/review paper, distributed under the terms of the Creative Commons Attribution-
Noncommercial 3.0 Unported License http://creativecommons.org/licenses/by-nc/3.0/), permitting all non-commercial use, distribution,
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Global Journal of Management and Business Research
Administration and Management
Volume 13 Issue 4 Version 1.0 Year 2013
Type: Double Blind Peer Reviewed International Research Journal
Publisher: Global Journals Inc. (USA)
Online ISSN: 2249-4588 & Print ISSN: 0975-5853
Efficacy of Credit Risk Management on the Performance of Banks
in Nigeria A Study of Union Bank PLC (2006-2010)
By Abdullahi Sani Rufai
Kogi State University, Anyigba Kogi State, Nigeria
Abstract - Adequately managing credit risk in financial institutions is critical for the survival and growth of the
Financial Institutions. The study aimed at assessing the efficacy of credit risk management on banks
performance. Also to determine if credit risk have effect on the profitability and examining the relationship
between interest income and bad debt of the Union Bank. Secondary sources of data were used for the study.
Time series and trend analysis are used for the analysis. Correlation coefficient and regression analysis were
used in testing the hypotheses. The study conclude that credit risk affect the performance of Union Bank PLC
and that to maintain high interest income, attention needs to be given to credit risk management especially
regarding the lending philosophy of Union Bank. The study recommends that union bank PLC should ensure
that loans given out to customers should be adequately reviewed from time to time to assess the level of its
risk such loan should be backed by collateral security.
Keywords : credit, risk, performance, management.
GJMBR-A Classification : JEL Code: E58, E51
EfficacyofCreditRiskManagementonthePerformanceofBanksinNigeriaAStudyofUnionBankPLC2006-2010
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