Title:
CREDIT CONTROL ATTITUDE AND COMPLIANCE WITH CENTRAL BANK OF NIGERIA PRUDENTIAL GUIDELINES: EVIDENCE FROM A DEPOSIT MONEY BANK IN NIGERIA

Authors:
William Smart Inyang* Japhet Uzu Somtochukwu, Nigeria

Abstract:

This study examines the extent of deposit money banks' compliance with Central Bank of Nigeria (CBN) prudential guidelines on credit control. This was necessitated by the persistent increase in the loan impairment charges of the surveyed bank between 2012 and 2016. Certain qualitative factors were looked into in identifying possible issues associated with the credit control attitude of the bank staff. The major objective of this study was to determine whether any significant relationship exists between credit control attitude of bank staff and level of compliance with CBN prudential guidelines. The study used primary data collected through oral interviews and through a structured questionnaire administered to 40 credit control staff who constituted the population sample. Analysis of the data collected was carried out using X2-distribution model. The study revealed that the attitude of staff towards credit control is significantly independent of their level of compliance with CBN prudential guidelines. There was therefore, no significant relationship between credit control and CBN prudential guidelines suggesting a weakness in the credit control system of the bank. It was thus recommended that awareness be created for staff on the importance of complying with CBN prudential guidelines, emphasizing that loans and advances be properly monitored, and customers' creditworthiness be properly ascertained before credit facilities are granted