INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT International Peer Reviewed & Refereed Journals, Open Access Journal ISSN Approved Journal No: 2456-4184 | Impact factor: 8.76 | ESTD Year: 2016
Scholarly open access journals, Peer-reviewed, and Refereed Journals, Impact factor 8.76 (Calculate by google scholar and Semantic Scholar | AI-Powered Research Tool) , Multidisciplinary, Monthly, Indexing in all major database & Metadata, Citation Generator, Digital Object Identifier(DOI)
Creation of risk assets formed a major function of any financial institution across the globe in a bid to bridge the surplus and deficit units. Despite this, financial institutions still grapple with the incidences of non-performing loans as most of these loans are not paid back. Hence, this study investigated the trend analysis of non-performing loans of financial institutions in Nigeria with the aim of confirming whether the spate of non-performing loans increased or reduced with the reviewed period. Descriptive research design was employed and data culled from the financial institutions annual report spanning 2010-2021. The population of the study comprised of all eleven (11) categories of financial institutions in Nigeria as at 31st December 2021. Four (4) categories of these financial institutions consisting of thirty eight (38) units were purposively considered for this study because they were actively involved in the risk assets creation. It was discovered that there was no increase in the non-performing loans of financial institutions within the period under review but still not within the acceptable benchmark of 5%. It was recommended that financial institutions should adopt more flexible credit policy such as loan rescheduling, loan restructuring and granting of waivers to clients. By so doing, more debtors will be willing to pay back. It was also recommended that the regulatory authority, such as Central Bank of Nigeria should carry out constant review of prudential guideline policy so as to be in tandem with the emerging reality
Keywords:
Non performing loan, financial institutions, risk asset, prudential guideline
Cite Article:
"Non performing Loans of Financial Institutions in Nigeria: A Trend Analysis", International Journal of Novel Research and Development (www.ijnrd.org), ISSN:2456-4184, Vol.8, Issue 12, page no.c345-c351, December-2023, Available :http://www.ijnrd.org/papers/IJNRD2312238.pdf
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ISSN:
2456-4184 | IMPACT FACTOR: 8.76 Calculated By Google Scholar| ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.76 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator
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