The Effect Of Risk Management In The Ngeria Banking Industry

Abstract

The Global Phenomenon Inn The Financial Service Industry Is Thre Consolidation Of The Financial Activities Towards Ensuring Financial Stability. It Is Occurring At A Rapid Pace Due To Changes In Economical Environment, Which Often Alter The Constraints Faced By Financial Service Firms. At The Same Time, The Change Is Battling To Combat Poor Risk Assets Management Which Has Been Established By Some studies To Be The Basic Abuse Of Bad Debt, A Major Distress Syndrome In The Banking Industry. The Scenario Has Been Agued To Be A Factor That Downsizes bank Profitability Within Any Fiscal Year And Often Times Destroys Customers ‘confidence In Banking .The Present Study Attempted An Evaluation Of Then Effect Of Risk Management In The Nigeria Banking Industry In The Era Of Consolidation .The Major Objectives Were To Determine The Relationship The Income Of The Bank And The Volume Of Their Risk Asses; Evaluate The Effect Of The Loan repayment On The Profitability Of Banks and Lastly to Determine The Impact of Loan Repayment On Loan able Fund Available In The Nigeria Banks .By Employing The Survey Research Method, The Study Used Questionnaire Instrument To Generate The Primary Data Needed For The Study. The Generated Data Were Father Subjected To Chi-Square Inferential Statistical Test To Determine If The Null Hypothesis Formulated In Chapter One Were Either Validated Or Nullified .Testing At 95% Confidence Level With 8 Degree Of Freedom ,The Null Form For Hypothesis One Was Not Rejected .This Implies That There Is A Negative Relationship Between Bank Income And The Bank Volume Of Their Risk Assets. But The Null From The Hypothesis Two Was Rejected .The Result Showed nthat Loan Repayment Has Positive Effect On The Bank’s Profitability .Lastly, The Null For The Third Hypothesis Was Not Again Rejected .The Implication Was That Loan Repayment Has Negatively Affects The Availability Of Lendable Fund In The Banks. The Findings Of This Study Justify The Fact That Loans The Engine That Drives Money Creation In The Economy. Due To This Crucial Role, The Study Recommends Among Other Things That Banks Should Develop Effective Mechanism To Overcome Risks And Other Information Asymmetries