[01] John N. N. Ugoani, College of Management and Social Sciences, Rhema University, Aba Abia State, Nigeria.

The study was designed to evaluate the relationship of poor credit risk management and bank failures in Nigeria and propose strategies for remedial actions. Credit risk management is one of the most crucial banking functions that involve the appraisals of requests for banking facilities. It is critical to bank survival or failure because banks traditionally earn their huge profits from interest on their risk exposures. The survey research design was adopted and researcher’s self designed instrument was used to generate data for the study. Chi-square statistic method was used for data analysis. It was found that poor credit risk management influences bank failures. Literature also provided credible evidence to show that weak corporate governance accelerates bank failures. Ten (10) recommendations were made based on the findings of the study.

Macro-Prudential, Micro-Prudential, Banana Management Mentality, Toxic Assets, Non-Performing Loans, Poor Credit Risk Management, Bank Failures

[01] Abiodun, F, and Ojo, Y. A. 2012, House Orders NDIC to Recover Loans, The Guardian, Vol. 29, No. 12192, Pp. 51 – 52. [02] Abolo, E, M 2000 “Bank Credit Risk Management Tectonics” First Bank Monthly Business and Economic Report July, pp. 5-11. [03] Agbada, A.O. (2010) Banking System Credit as an instrument of economic growth in Nigeria. Central Bank of Nigeria Bullion No. 34, No. 2, PP. 30 – 35. [04] Ajekigbe, J.M 2008, First Bank Annual Reports, Vol. No. 7, pp. 111 [05] Anumihe, I. 2013 Only 10 banks are sound says NDIC, Daily Sun Vol. 10, No. 2614, PP: 57 [06] Austin, L, 1991, “A Supervisor’s View of Risk Management in Financial Institutions” Readings in Risk Management in Financial Institutions” (Eds) In K. Davis and I Harper, Allen and Urwin, Sydney, pp. 108-122. [07] Ayininuola, S.I. 2007 Leadership in Corporate Governance. Union Digest, Vol.11, Nos. 1 and 2, Union Bank of Nigeria Plc. [08] Central Bank of Nigeria (2011) Statistical Bulletin, Debt Management Office, Abuja [09] Chiejina, N, 2012, AMCON to go after Debtors Foreign Assets: The Nation, Vol. 7, No. 2113, Pp. 16 – 18. [10] Ebhodashe, 2013, Nedbank to acquire 1/5 of Ecobank in December. National Daily, Edition 407, pp 19 [11] Greuning, H, and Bratanovic, S.B 2003, Analyzing and Managing Banking Risk, 2nd Edition, Washington D.C, The World Bank. [12] Hempel, G.H, Coleman, A.B, and Simonson, D.G. 1990, Bank Management: Text and Cases 3rd Edition, John Willey and Sons, New York. [13] Itua, F, 2013 Saraki: EFCC quizzes Mbonu, ex-MD, SGBN. Daily Sun, Vol. 10, PP 55 [14] James, C. 1987, “Some Evidence on the Uniqueness of Bank Loans”, Journal of Financial Economics”, No. 16, pp. 217 – 36. [15] Matyszak, P. 2007, Ancient Rome on Five Denarri a Day, 1st Edition, New York, Thames & Hundson. [16] Markowitz, H.M 1952, “Portfolio Selection” Journal of Finance, Vol. 7, No. 1, pp. 77-91 [17] Markowitz, H.M 1959, “Portfolio Selection”, 1st Edition, John Willey & Sons, New York,. [18] Maynard H.B, 1970, Handbook of Business Administration, 1st Edition, McGraw-Hill, New York. [19] Mckinley, J.E. 1990, “Analyzing your credit culture” The Journal of Commercial bank Lending, Vol. 1, pp. 4-40. [20] Mckinley, J.E. 1992, “Linking Credit Culture and Risk Management Strategy”, The Journal of Commercial Bank Lending, Vol. 1, pp. 1-102. [21] Merton, R.C 1990, “The Financial System and Economic Performance”. Journal of Financial Services Research. No. 4, pp. 3-42. [22] Moghalu, K.C. 2011 “Central Banking in Emerging Economies: Challenges, Successes, and Prospects, The Guardian, Vol. 29, No. 11922, pp. 69. [23] Nigeria Deposit Insurance Corporation (2012) Annual Report and Statement of Accounts. [24] Nnamdi, I.S and Nwakama, C. 2011 Marketing of financial services in Nigeria: Theory and Development, Owerri, Stramark Communications Consult. [25] Nwankwo, G.O. 1991, Bank Management, Principles and Practice, 1st Edition, Malthouse Press Ltd, Lagos. [26] Nwaze, C, 2006, Bank Fraud Exposed with Cases and Preventive Measures 1st Edition, Control and Surveillance Associates Ltd, Lagos. [27] Nweze, C, 2012a “AMCON seeks Advisors for Nationalized Banks”, The Nation, Vol. 7, No. 2071, Pp. 17 - 18. [28] Nweze, C, 2012b, “Regulators drill MfB Directors on Risk Management” The Nation, Vol. 7, No. 2110, Pp. 5. [29] Obi, M. C, 2012, AMCON to Dispose Nationalized Banks, Nigerian Pilot, Vol. 3, No. 154, Pp. 1 – 2. [30] Oladipo, B. 1993, “Causes of Distress in the Banking Industry Identified”. Business Times, Vol. 18, No. 24, Pp. 5 – 6. [31] Okorie, G. and Uwaleke, U.J, 2010 An overview of Financial Sector Reforms and Intermediation in Nigeria. Central Bank of Nigeria Bullion, Volume 34, No.2, PP. 19 – 29. [32] Omonode, D (2013) NDIC indicts EFCC over collapse of Gulf Bank – Goes after Babajide Rogers, Prince Adekunle Adeyegba Johnson, Others. National Daily. Edition 407, PP 1, and 11 [33] Onyekwere, J. 2013 Judge withdraws from Atuche, Ojo alleged fraud trail. The Guardian, Vol. 30, No. 12718, PP.7 [34] Oyedotun, A. 1994, “Causes, Features and Dimensions of Distress in the Financial Services Industry”, Financial Institutions Training Center, Lagos. [35] Ozigbo, N. C. 1995, Banking crises in the developing economies: A lesson to Nigerian Financial Institutions. First Bank of Nigeria Plc, Bi-Annual Review, Vol. 3, No. 8, pp 22-31 [36] Sanusi, J.O, (1995), “Efficient management of Distressed Enterprises of Banking and Insurance Industry” First Bank Monthly and Economic Report, March, Lagos, pp. 2 – 13. [37] Sheppard, R, 1991, “Approaches to loan management issues for Australian Banks – The practice”, The Australian Banker, Pp. 178 – 181. [38] Sinkey, J.C, 1992, “Commercial Bank Financial Management” 1st Edition, McMillan Publishing Company, New York. [39] Soludo, C.C. 2004 Consolidating The Nigerian Banking Industry to meet Development Challenges of the 21st Century. Address delivered at the special meeting of the Banker’s Committee, Abuja, July. [40] Spadaford, J.E 1988, “Credit Quality: CEO’s set the tone, Magazine of Bank Administration, Vol. 1, No. 5, Pp. 20 – 22. [41] The Guardian (2011) Editorial: Nationalization of Banks, Vol. 29, No. 11922, pp:14 [42] Tufano, P. 1996, “Who Manages Risk”? An Empirical Examination of Risk Management Practices in the Gold Mining Industry”, Journal of Finance, 51: 1097 – 137. [43] Tyree, A. L. 2003, Tyree’s Banking Law in New Zealand, LexisNexis, pp 70 [44] Udunze, B. 2013 Ecobank’s CEO foregoes $1.14m bonus: Daily Sun, Vol. 10, PP. 55 [45] Ugoani, J. N. N. 2013a, “Effect of Emotional Intelligence on Bank Success” Germany Lambert Academy Publishing [46] Ugoani, J.N.N. (2013b) Power of Bank Credit on Economic Growth: A Nigerian Perspective International Journal of Financial Economics, Vol. 1, No. 3, PP. 93 - 102