ACHIEVING SUSTAINABLE DEVELOPMENT OF LISTED DEPOSIT MONEY BANKS INNIGERIA THROUGH CREDIT RISK MANAGEMENT

Abstract

Sustainable development has become a topical issue in the 21st century due to climate change and environmental degradation, which has spurred the implementation of sustainable development by deposit money banks in Nigeria.  Sustainable development has become a rising awareness of the ecological, social, and financial aspects. This study examined the effect of credit risk management on the sustainable development of listed deposit money banks in Nigeria, employing a post-facto research design.  Secondary data extracted from the financial statements were analyzed using both descriptive and inferential analyses. The study found that credit risk management, as proxied by Nonperforming Loan (NPL) and Loan Deposit Ratio (LDR  has a significant and positive effect on the sustainable development of listed Deposit Money Banks (DMBs) in Nigeria. This study recommends, among other things, that bank management of deposit money banks should devise a risk management mechanism to reduce the level of non-performing loans, thereby promoting the sustainable development of deposit money banks in Nigeria.