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http://repository.fuoye.edu.ng/handle/123456789/951
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| Title: | Lending Rate, Bad Debt and Credit Management in Nigeria Commercial Banks: A VAR Analysis |
| Authors: | AGU, OSMOND CHIGOZIE
OGBUAGU, MATTHEW IKECHUKWU |
| Keywords: | Bad Debt, Lending Rate, Credit Management, VAR, Nigeria |
| Issue Date: | Feb-2015 |
| Publisher: | American Journal of Economics, Finance and Management. |
| Citation: | Agu O.C. and Ogbuagu M. I.(2015) Lending Rate, Bad Debt and Credit Management in Nigeria Commercial Banks: A VAR Analysis. American Journal of Economics, Finance and Management |
| Series/Report no.: | Vol. 1, No. 3;Vol. 1, No. 3 |
| Abstract: | This paper examines the causes of bad and doubtful debt in Nigeria commercial banks. It presents a framework to x-ray the
risk and to validate the checks and balances to prevent or rather reduce the risk. The study uses both primary and secondary
tools for data collection to determine causes of bad debts. Analysis of Variance (ANOVA) and Vector Autoregressive (VAR)
model were applied to validate the result spanning the period 1993(Quarter 1) to 2011(Quarter 4). The Impulse response shows
that incessant increase in interest rate is a strong and statistically important factor that causes bad debt in Nigeria commercial
banks. Bank`s Management should establish sound lending policies, adequate credit administration procedure, effective and
efficient machinery to monitor lending function with established guidelines, reduce interest rates on lending etc. |
| URI: | http://repository.fuoye.edu.ng/handle/123456789/951 |
| ISSN: | Vol. 1, No. 3 |
| Appears in Collections: | Economics and Development Journal Publications
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