EFFECTS OF RISK MANAGEMENT ON ACCESSING CREDITS OF DEVELOPMENT FINANCE BANKS IN NIGERIA
The paper investigated the effects of risk management on accessing credits of development finance banks in Nigeria. The study adopted the cross-sectional survey design. The convenience sampling technique was adopted in selecting the 387 respondents. Descriptive and inferential statistical analytical methods were employed for analyzing the data. Structural Equation Modeling (SEM) technique was used in testing the hypotheses developed for this study. The study established that the patronage of credit facility in development finance banks largely depends on credit risk management strategy. Specifically, the volume of credit offers in the banks signified the rate of credit patronage. This was evident that in most cases, that the customers turned down the idea of seeking banks loan if money made available could not help their situations. People approach the banks for loan to develop their commercial activities significantly, and when amounts likely made available by the banks is too small for their needs, the alternate approach was to source money from any available opportunity. In line with findings and conclusion drawn from the study, it is recommended that the managers in the development finance banks in Nigeria should ensure that they took into consideration; credit volume alongside other factors–tenor of facility, terms and other loan repayment technicalities in order to favour the customer patronage and prevention of credit failures.
OKENWA GOC, AGBAEZE EK, ONYEJIAKU CC