IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 11 NO. 4 2025
DOI: 10.56201/jafm.vol.11.no4.2025.pg223.234

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The Consciousness for Survival: Does Credit Risk Management Increases the Sustainable Development of Listed Deposit Money Banks in Nigeria in this Contemporary Time?

Vivian Chioma Anetoh Ajakpo, PhD, John Chidume Anetoh, PhD, Rita Njideka, Chiekezie PhD, Anthony Onyeka Anyadufu PhD, Edwin Chukwu Okoro PhD

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Abstract

The difficulty encountered by some deposit money banks as a result of huge non-performing loans and other related issues has prompted the consciousness for survival by money deposit banks in Nigeria. The need for sustainable development of deposit money banks in Nigeria is very imperative in this contemporary time. Therefore, it becomes germane to investigate how management of credit risk could help to increase the survival and the sustainable development of deposit money banks in Nigeria. Specifically, the study examined the effect of managing non- performing loans as well as loan deposit ratio on the sustainable development of listed deposit money banks in Nigeria. Accordingly, the study adopted an ex-post facto research design method. Secondary data were sourced from the financial statements were utilized which aided the analyses of this study. The study found that credit risk management measured by non- performing loan as well as loan deposit ratio had positive and significant effect on enhancing the sustainable development of listed DMBs in Nigeria. The implication of the findings is that management of credit risk is needed especially in this contemporary time which will go a long way to increase the sustainable development of deposit money banks in Nigeria. Based on the findings, the researchers recommended that managers of deposit money banks should devise risk management mechanisms so as to reduce the level of non-performing loans for increased sustainable development of deposit money banks in Nigeria. The researchers recommended also that all the stakeholders especially the regulators, investors, management and analysts should be more observant on credit risk red flags and also devise means of managing them. They should also ensure that credit exposures are adequately secured through proper scrutiny of loan processing in order to reduce loan defaults and delinquencies by bank money borrowers. The researchers also reco

keywords:

Credit risk management; Non-performing loan; Loan deposit ratio; Sustainable development; Deposit money banks in Nigeria.

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