Abstract:

This study examined impact assessment of credit risk management on the corporate performance in the banking sector with special reference to selected banks (i.e., First Bank of Nigeria Plc, Guaranty Trust Bank Plc and Stanbic IBTC) at their Lagos Liaison offices. The main thrust of the study was to investigate the reasons for poor credit risk management in the banking sector. Three research questions and three hypotheses were formulated to guide the study. A descriptive survey research design was adopted for the study, with which the population of four hundred and forty-six (446) staff members from the selected banks were recorded. The study employed purposive and simple random sampling techniques to select two hundred and ten (210) participants using Taro Yemane (1967)’s sample size determination at 0.05 level of significance. Data gathered were analysed with descriptive statistics of simple percentage, frequency tables Pearson Chi-square. The result obtained indicate a significant relationship between credit risk management and banking sector performance while the second result also indicate a significant relationship between causes of distress in the financial system and credit risk management processes as proffered solutions. The third result showed a significant relationship between human resources and credit risk management. It was recommended that the selected Banks should encourage training and development for staff in credit risk management department to enhance consistent service delivery. Reporting procedure should be clearly made known to all staff members in credit risk management section.