Journal of Finance and Bank Management

The Efficency of Loan Recovery Rate in Deposit Money Banks in Nigeria
Amenawo I. Offiong, Nelson Egbuka

Abstract
This study assessed the efficiency of loan recovery rate in deposit money banks in Nigeria. The main objective was to examine the effect of loans recovery rate and its effect on the performance of selected deposit money banks in Nigeria. The descriptive result for the analysis of the effect of loan recovery rate on bank performance revealed that there is a negative relationship between loan recovery rate and banks performance. The study also identified that a positive correlation exists between loan recovery rate and risk of credit default. The result further revealed that a negative and significant relationship exists between loan recovery rate and bank performance. It was discovered that a negative and significant relationship exists between loss-given default (LGD) and bank performance. The study recommended that borrowers should be adequately informed of penalties for loan default because, for any bank to survive it must have a sound credit policy that enables it achieve profitability.

Full Text: PDF     DOI: 10.15640/jfbm.v5n2a4