CREDIT RISK MANAGEMENT AND LIQUIDITY POSITION OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Previous cases of bank failure across nations have been traced largely to rising toxic asset in banks' loanportfolio. This research seeks to examine the effect of credit risk management on the liquidity positionof Nigerian banks. Data were generated from secondary sources, specifically, the annual reports andaccounts of the selected Deposit Money Banks (DMBs) for the period 2013 - 2016. Descriptive statistics,correlation, as well as multiple regression techniques were utilized as tools for analysis in the study. Thefindings established that Non-Performing Loan Ratio (NPL) do not significantly relate to increases ordecreases in the dependent variable Loan to Total Assets (LTA) of the sampled banks over the studyperiod while increases or decreases in Exposure at Default (EAD) do not significantly relate to increasesor decreases in the selected banks liquidity position. The study recommends amongst others the needfor Nigerian banks to give critical consideration to credit exposure and default risk of the borrower ascritical components of credit risk management essential for long-term success of the Nigerian bankinginstitution.