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Credit Risk Management Strategies of Deposit Money Banks on Loan Facilities

	International Journal of Scientific Research and Engineering Development (IJSRED)	Full Text:
	Published Issue : Volume-4 Issue-1
	Year of Publication : 2021
	Unique Identification Number : IJSRED-V4I1P46
	Authors : Dr. Banjo, Kudirat Adeola
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Abstract :

The collapse of many banks is due to poor management of credit facilities. The objectives of this study are to investigate loan supervision and monitoring as a strategy for effective credit risk management.The design for the study was a survey design.The targeted population of this study comprises of all thestaff of the 5 top Deposit Money Bank operating in Nigeria. This study revealed that loan supervisor and monitoringare strategic tool for effective credit risk management, also, collateral security is a strategic tool to effective credit risk management. Arisen from the findings of this study, the study recommended that banks should ensure their credit risk management strategy is effective and for every new product (in form of loan) introduced, there should be efficient loan supervisor and monitoring, and banks should ensure that no loan is granted without corresponding collaterals, because, collateral security is a robust strategic tool to effective credit risk management.