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Evaluating the Relationship Between Credit Risk and Bank Performance in Nigeria: Ardl Analytic Approach

This study investigated the relationship between the upside potentials inherent in credit risk and the performance of deposit money banks (DMBs) in Nigeria. While credit risk is traditionally perceived as a threat to banking stability, emerging evidence suggests that it can also present opportunities for enhanced profitability if effectively managed. The study obtained data from the Nigerian Deposit Insurance Corporation where credit risk proxied by the ratio of non-performing loans to total loans (NPLTL) and average liquidity ratio (ALR) as explanatory variables, whereas return on assets (a p…

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    from https://iiardjournals.org/get/JAFM/VOL. 12 NO. 5 2026/EVALUATING THE RELATIONSHIP BETWEEN 169-189.pdf