EFFECT OF CREDIT RISK MANAGEMENT AND ECONOMIC GROWTH ON THE PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

The present study investigated the moderating effect of economic growth on the relationship between credit risk management and performance of deposit money banks in Nigeria. Hierarchical regression analyses were carried out using data collected from the sample of population of 113 credit department staff (credit risk managers, credit analyst's and debt recovery managers) from branches of First Bank of Nigeria in A buja. Census sampling method was used. The results showed that there is a relationship between credit risk management and performance of deposit money bank in Abuja. Besides, the research found a moderating effect of economic growth on the relationship between credit risk management and performance of deposit money bank in Abuja. Therefore, the positive relationship between credit risk management and performance of deposit money bank in Abuja was stronger for those periods economic growth was high. The study recommends that organizations should focus adequately on improving on their credit risk management processes with an eye on the level of economic growth prevailing. Such practices would create valuable and unique activities that would improve performance in the banking industry.