IMPACT OF INTERNAL CONTROL ON CREDIT RISK OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

The main objective of the study is to determine the impact of internal control on credit risk of listed deposit money banks (DMBs) in Nigeria for the period of five (5) years from 2018 to 2022. The population of the study consists of fourteen (14) listed DMBs in the Nigerian Exchange Group (NGX) and a census sampling technique was adopted in selecting the sample size of the study. The study used data from the audited annual report of the banks. The data was analyze using the multiple regression model. The findings of the study that control environment, risk assessment, and control activities were found to be negatively significant on credit risk of the listed DMBs in Nigeria. The study recommended that DMBs in Nigeria should implement risk assessment mechanisms to allow for checks to ensure effective control of the banking activities. Similarly, credit policies and procedures should be followed to the later to ensure that loans are issued to credit worthy people and that there is a security for loan issued. This will reduce the number of non-performing loans of the bank.