Title:
CREDIT ADMINISTRATION AND PERFORMING LOANS OF COMMERCIAL BANKS IN NIGERIA: A PANEL DATA ANALYSIS

Authors:
Dr. Nwosi, Anele Andrew and Dr. Greatness U. Oji

Abstract:
This study examined the effect of credit administration on performing loans of quoted commercial banks in Nigeria. Cross sectional data was sourced from financial statement of commercial banks and Central Bank of Nigeria Statistical bulletin from 2009-2018. Performing loan portfolio was used as dependent variables while bank credit monitoring; credit appraisal and internal lending policies were used as independent variables. Panel data methodology was employed while the fixed effects model was used as estimation technique at 5% level of significance. Fixed effects, random effects and pooled estimates were tested while the Hausman test was used to determine the best fit. Panel unit roots and panel cointegration analysis were conducted on the study. Internal lending policies and credit appraisal have positive relationship with performing loans portfolio while credit monitoring has negative relationship with performing loans portfolio. From the findings, the study concludes that credit administration has significant relationship with loan portfolio of Nigeria commercial banks. We recommend that credit should be properly appraised and fully monitored.

Keywords:
: Credit Administration, Performing Loans, Commercial Banks, Nigeria, Panel Data Analysis