Effect of Information Communication Technology on Credit Administration on Deposit Money Banks in Nigeria

Authors

  • Matthew Akemieyefa (PhD) Federal University Wukari, Taraba State

Keywords:

Information and communication technology (ICT), credit administration, loans and advances, non-performing loans

Abstract

Effective communication between the borrower and bank plays a pivotal role in reducing non-performing loans (NPLs) and ensuring the stability of the banking sector in Nigeria. Studies in this regard in the context of emerging financial system have received little attention particularly the Nigerian financial system. This study scrutinizes the effect of information and communication technology (ICT) on credit administration in Nigeria from 2008 to 2021. The population of the study consists of 9 listed banks in the Nigerian stock exchange. ICT was proxied by internet access, credit administration by loans and advance and non-performing loans by ratio of total loans. The ARDL and the Toda and Yamamoto causality models were adopted to assess the co-integrating nexus. Findings revealed that effective deployment and integration of ICT into banking operations significantly reduces fabricated customers’ security documents and non-performing loans effect on banks profitability. The study recommends a comprehensive credit application scrutiny, and data sharing among banks, to minimise predatory debtors’ impact on banks financial performance.

Author Biography

Matthew Akemieyefa (PhD), Federal University Wukari, Taraba State

Department of Banking and Finance
Federal University Wukari, Taraba State

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Published

2024-01-29

How to Cite

Akemieyefa, M. (2024). Effect of Information Communication Technology on Credit Administration on Deposit Money Banks in Nigeria. FUW-International Journal of Management and Social Sciences, 9(1), 195–212. Retrieved from https://fuw-ijmss.com.ng/index.php/fijmss/article/view/72