Abstract:
This study; An Evaluation of Credit Management and its Effects on
Banks' profitability; A comparative Study of First Bank PLC and
Guaranty Trust Bank PLC is concerned with examining the process of
credit management in the banks and the effect of non performing
loans on the performance of Nigeria Banks. The results show that the
impact of loan loss reserve has a negative impact on profit. This
implies that higher credit risks result in low profit.
The methodology used was interview technique for data collection.
Managers and lending officers of the two Banks were interviewed,
and it was discovered that Guaranty Trust Bank PLC which is a new
generation bank performed better during the period under review.
This was discovered to be as a result of their highly skilled personnel
and intensive computer network.
In summary, it was recommend that Nigeria banks should discard the
"colonial' policies and other internal problems that delay credits to
worthy customers in order to build confidence in the system and
make bank credits worthwhile venture at the same time improving
performance. Also, there should be less interference from top
management staff and board of directors.
