Abtracredit risk management strategies and capital requirement variables affect banks’ profitability in Nigeria. Panel data model was used to estimate the relationship that exists among loan loss provisions (LLP), loans and advances (LA), non-performing loans (NPL), capital adequacy (CA)ct for Project One
credit risk management strategies and capital requirement variables affect banks’ profitability in Nigeria. Panel data model was used to estimate the relationship that exists among loan loss provisions (LLP), loans and advances (LA), non-performing loans (NPL), capital adequacy (CA)
and return on asset (ROA)
credit risk management strategies and capital requirement variables affect banks’ profitability in Nigeria. Panel data model was used to estimate the relationship that exists among loan loss provisions (LLP), loans and advances (LA), non-performing loans (NPL), capital adequacy (CA)
and return on asset (ROA)
Abtracredit risk management strategies and capital requirement variables affect banks’ profitability in Nigeria. Panel data model was used to estimate the relationship that exists among loan loss provisions (LLP), loans and advances (LA), non-performing loans (NPL), capital adequacy (CA)ct for Project One
credit risk management strategies and capital requirement variables affect banks’ profitability in Nigeria. Panel data model was used to estimate the relationship that exists among loan loss provisions (LLP), loans and advances (LA), non-performing loans (NPL), capital adequacy (CA)
and return on asset (ROA)
Nigerian banks have continued to invest huge sums of scarce financial
resources on risk management modeling, with a view to maximizing returns and minimizing banks risk exposure through provision for loan losses. However, empirical evidence on the magnitude of the relationships between credit risk and banks profitability in Nigeria is rather scarce. A few studies that have examined the links failed to consider the role of capital adeuacy in accordance with !assel "" accord in a unified framework. #sing a time series and cross sectional data from $%%&'$%%( obtained from selected banks annual reports and accounts in Nigeria, this study examined the )elationship !etween *apital Adeuacy and the +oans !ehaviour of ,eposit -oney !anks in Nigeria. .his is with a view to providing further empirical evidence on how credit risk management strategies and capital reuirement variables affect banks profitability in Nigeria. /anel data model was used to estimate the relationship that exists among loan loss provisions 0++/1, loans and advances 0+A1, non'performing loans 0N/+1, capital adeuacy 0*A1 and return on asset 0)2A1. )esults showed that sound credit risk management and capital adeuacy impacted positively on banks financial performance with the exception of loans and advances which was found to have a negative impact on banks profitability in the period under study. !ased on the findings, it is therefore, recommended that Nigerian banks institute appropriate credit risk management strategies by conducting rigorous credit appraisal before loan disbursement and draw down. "t is also recommended that adeuate attention be paid to enhance .ier'2ne capital of Nigerian banks.