International records / OpenAlex research

Effect of Credit Management on Non-Performing Loans among Listed Deposit Money Banks in Nigeria

This study examines the effect of credit management on non-performing loans (NPLs) among 10 listed deposit money banks (DMBs) in Nigeria from 2015 to 2024. Guided by Merton’s (1974) Credit Risk Theory, which explains that defaults occur when borrowers’ liabilities outweigh their repayment capacity, the research focuses on four credit management variables: Average Collection Period (ACP), Average Payment Period (APP), Debtor’s Turnover Ratio (DTR), and Creditor’s Turnover Ratio (CTR). Specifically, the objectives were to evaluate the effects of ACP, APP, DTR, and CTR on the incidence of NPLs. U…