Ismaila, Olotu AbdullahiAbdulkarim, Shaibu Alhassan2023-12-102023-12-102016-01-02Abiola, I. & Olausi, A.S. (2014). The impact of credit risk management on the commercial banks performance in Nigeria, International Journal of Management and Sustainability, 3(5), pp295- 30(5. Allen, F. & Santomero (1998).The theory of financial intermediation, Journal of Banking and Finance, 21, pp 1461 -1485. Angklomkliew, S., George, J. & Packer, F. (2009): Issues and development in loan loss provisioning: the case of Asia”, BIS Quarterly, December, 2009, pp.69-83. Basel Committee on Banking Supervision (1999). Sound practices for loan accounting and Disclosure. Bashir, A.M. (1998). Risk and profitability measures in islamic banks: The case of two Sudanese banks”, Islamic Economic Studies, Vol.6, No.2, May. Berger, A.N. (1995). The relationship between capital and earnings in banking, Journal of Money, Credit and Banking 27, pp432-456. Berrios, M.R. (2013). The relationship between bank credit risk and profitability and liquidity, Internationaljournal of Business and Finance Research, Vol .7, pp 105-118. Bhattacharya, S. & Thakor A.V. (1993). Contemporary banking theory, Journal of Financial Intermediation, 3, pp2-50. Boudriga, A. Boulila, N., & Jellouli, S. (2009). Does bank supervision impact nonperforming loans: Cross-country determinants using aggregate data? Retrieved on 10/04/12 from http:// mpra. Ub. Uni-muenchen.de/18068/MPRA Paper No. 18068. Bordeleau, E. & Graham, C. (2010). The impact of liquidity on bank profitability, Bank of Canada Working Paper No. 38. Craigwell, R. 8c Elliot, W. (2010). Loan loss provisioning: the commercial banking system in Barbados. Central Bank of Barbados CBB Working Papers. Demiguc-Kunt, A., Detragiache, E. & Merrouche, O. (2010), Bank capital: lessons from the financial crisis”, IMF Working Paper.https://keffi.nsuk.edu.ng/handle/20.500.14448/723The recent cases of bank failure and financial crises in Nigeria call for assessment of credit risk of Deposit Money Banks. This study empirically assesses the effects of credit risk and financial performance of deposit money banks in Nigeria. The period covered by the study is 2005-2014 while the population of the study comprises of all Deposit Money Banks in Nigeria. Credit risk measures used in the study include liquidity ratio, non-performing loan ratio, risk weighted capital ratio and provisions for non-performing loan ratio while return on asset was used as proxy for financial performance. Using aggregate banking data, multiple regression analysis was employed to examine the relationship between credit risk and financial performance of Deposit Money Banks. Results of the study show that the relationship between non-performing loans and financial performance of deposit money banks in Nigeria is negative and statistically significant. The study however found a positive relationship between provision for non-performing loan and financial performance although not statistically significant. The study therefore recommends stricter banking regulation and supervision by the regulatory authorities by ensuring good corporate governance through increasing transparency of records and accounts of deposit money banks in Nigeria thus improving credit risk management.enCredit risk, Non-performing loan, Loan loss provisions, Financial Performance.Article