Effect of Credit Management and Bad Debt on the Growth of Nigerian Deposit Money Banks

This research work examined the effect of credit management and bad debt on the growth of Nigerian deposit banks. Credit administration is the most important function of the banking industry. It is the most risky and difficult and at the same time the most profitable function performed by banks but bad debt and credit mismanagement has been the problem militating against the growth of banking industry. The main objective of this study is to examine the effect of credit management and bad debt on Nigerian deposit money banks. The study employed ex-post facto research design secondary source of data were also employed using CBN statistical bulletin and national bureau of statistical ordinary least square of simple regression model were used to establish the relationship between the dependent variables (liquidity and profit before tax of deposit money banks growth) an independent variables (bad and doubtful debt and bank credit). The result shows that bad debt has negative effect but significant effect on the profitability and liquidity of deposit money banks, while bank credit has a positive and significant effect on the growth of deposit money banks in Nigeria. The study recommended among others that management should analyze the nature of risk carefully before extending credit