THE EFFECT OF CREDIT RISK INDICATORS ON STABILITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Authors

  • Umar Salim Ibrahim Department of Accounting, Faculty of Management Sciences Federal University Dutse, Jigawa State, Nigeria
  • Hamza Umar Muhammad Department of Accounting, Faculty of Management Sciences Federal University Dutse, Jigawa State, Nigeria
  • Idris Hauwa Jibrin Department of Accountancy, Collage of Business and Management Kaduna Polytechnic
  • Jamilu Madaki Department of Accounting, Faculty of Management Science, Federal University Dutse, Jigawa State, Nigeria
  • Abdullahi Zaharadeen Musa Department of Accounting, Faculty of Management Science, Federal University Dutse, Jigawa State. Nigeria
  • Najib Muhammed Sani Department of Accounting, Faculty of Management Sciences Federal University Gusau, Zamfara State, Nigeria

DOI:

https://doi.org/10.57233/gujaf.v7i1.31

Keywords:

Liquidity Ratio, Loan to Deposit Ratio, Provisions for Doubtful Debt, Risk Management

Abstract

This study examined the effect of credit risk indicators on stability of listed deposit money banks in Nigeria. The relationships between the loan-to-deposit ratio and provisions for doubtful debts on liquidity ratio. Quantitative research design was utilized, and the study analyzes panel data from 11 listed deposit money banks for the period of ten years from 2011 to 2021. Fixed and random effects were used for the regression analyses. The findings provide a significant positive relationship between the loan-to-deposit ratio and the liquidity ratio, suggesting that improved credit risk management through effective lending practices enhances banking stability. Conversely, the analysis highlights that provisions for doubtful debts do not significantly affect liquidity ratios, revealing gaps in current risk management frameworks. These insights underline the need for policy recommendations that enhance the loan-to-deposit ratio and improve provisions for doubtful debts to support the banking system's stability in Nigeria. This study contributes to the broader discourse on financial stability, providing empirical evidence and actionable strategies for risk managers and policymakers in navigating the complex financial landscape.

Author Biographies

Umar Salim Ibrahim, Department of Accounting, Faculty of Management Sciences Federal University Dutse, Jigawa State, Nigeria

Department of Accounting, Faculty of Management Sciences

Federal University Dutse, Jigawa State, Nigeria

Hamza Umar Muhammad, Department of Accounting, Faculty of Management Sciences Federal University Dutse, Jigawa State, Nigeria

Department of Accounting, Faculty of Management Sciences

Federal University Dutse, Jigawa State, Nigeria

Idris Hauwa Jibrin, Department of Accountancy, Collage of Business and Management Kaduna Polytechnic

Department of Accountancy, Collage of Business and Management

Kaduna Polytechnic

Jamilu Madaki, Department of Accounting, Faculty of Management Science, Federal University Dutse, Jigawa State, Nigeria

Department of Accounting, Faculty of Management Science,

Federal University Dutse, Jigawa State, Nigeria

Abdullahi Zaharadeen Musa, Department of Accounting, Faculty of Management Science, Federal University Dutse, Jigawa State. Nigeria

Department of Accounting, Faculty of Management Science,

Federal University Dutse, Jigawa State. Nigeria

Najib Muhammed Sani, Department of Accounting, Faculty of Management Sciences Federal University Gusau, Zamfara State, Nigeria

Department of Accounting, Faculty of Management Sciences

Federal University Gusau, Zamfara State, Nigeria

Downloads

Published

2026-04-30

How to Cite

Salim Ibrahim, U. ., Umar Muhammad, H. ., Hauwa Jibrin, I. ., Madaki, J. ., Zaharadeen Musa, A. ., & Muhammed Sani, N. . (2026). THE EFFECT OF CREDIT RISK INDICATORS ON STABILITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA. Gusau Journal of Accounting and Finance, 7(1), 436-449. https://doi.org/10.57233/gujaf.v7i1.31

Issue

Vol. 7 No. 1 (2026): Gusau Journal of Accounting and Finance

Section

Articles

License

Copyright (c) 2026 Umar Salim Ibrahim, Hamza Umar Muhammad, Idris Hauwa Jibrin, Jamilu Madaki, Abdullahi Zaharadeen Musa, Najib Muhammed Sani

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Most read articles by the same author(s)