The study Effective Risk Managemnet procedures in the Nigerian Banking sector. A study of some selected Commercial Banksfocuses on the level of compliance by the deposit money banks with the central bank of Nigeria guildlines on asset guality creation/management and the corporate goverance structure within the banking sector. In an attempt to carry out this research topic five commercial banks were selected First bank of Nigeria Plc, Union bankof Nigeria Plc, United Bank for Africa Plc, Zenith Bank of Nigeria Plc, and First City Monument Bank, that are locatedwithin Awka, Onitsha and Nnewi in Anambra State. Inorder to understand the importance of the topic to the enthronmenet of a sound banking system in Nigeria, the underlisted objectives were identified as key critical flashpoint to be considered in the course of this rresearch work. They are as follows:- To review the scope and adequacy of existing credit risk management policies in Nigeria banks. To identify key existing gaps in credit risk management policies in selected banks evaluate the impact of the central bank of Nigeria prudential Guildline on banks credit risk management policies ,loan loss provsioning, profiitabiliyt / loss. To determine the impacts of in efficient credit risk management policies on illiguidity of banks. To underscore the importance of management capacity annd support in ensuring effective risk management policies in the Nigerian banking sector. To achieve the objectives set out in the study, a descriptive survey design was adopted to evaluate the stated objectivees. The population of the study were drawn from staff of the five selected banks. Sample size of one hundred and fourteen respondents were determined using Godden’s (2004) statistical formula. Analysis of the data from the responses to the questionnaires was presented using means, frequencies, percentages and histogram charts. Trend analysis of the five commercial banks financials covering (2006-2010) report were examined using Anova statistical tool. Findings from the data indicate that there are competency gaps in terms oof staff charged with credit analysis and processing of loan applications, inaffective loan monitoring leading to high incidence of non-performing loans, weak corporate goverance structure and onsider abuses as well as ineffective supervison by the reguatory agencies the central bank of Nigeria and the Nigeria Deposit insurrance coporation of Nigeria. Key recommenndations were made to correct the inbalance and they include strict survelliance of the banking sector by the regulatory agencies, constant review of risk management policies and capacity building through training of staff charged with credit risk management within the banking sector in Nigeria. Finally for the sustainability of a stable banking system efforts should be at reducing the level of non-performing loans through strict monitorring of the loan adminstration process/ management to be in line with global best practices.

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