Credit Management Practices and Bank Performance: Evidence from First Bank
Ogunlade Olabamiji *
Department of Accountancy, The Polytechnic Ibadan, Ibadan, Nigeria
Oseni Michael
Department of Accountancy, The Polytechnic Ibadan, Ibadan, Nigeria
*Author to whom correspondence should be addressed.
Abstract
The study examined the influence of credit management practices on financial performance of Nigerian banks with specific reference to First bank Plc. Data was collected using Purposive sampling technique from thirty (30) respondents as a sample size used to collect data from the respondents. Both descriptive and inferential statistics were used to analyze data, such as frequency, percentage, weighted mean score, and multiple regression. The result revealed that credit management practices have a significant positive influence on the financial performance of First bank. The result concluded that client appraisal, credit risk control, and collection policy are major predictors of financial performance of First bank. Subsequently, the study recommended that management of other banks should learn from First bank by enhancing their client appraisal techniques, credit risk control and adopting a more stringent policy to improve their financial performance.
Keywords: Client appraisal, credit risk control, collection policy, credit management, Nigeria