CREDIT RECOVERY AS A PANACEA FOR SUSTAINABLE BANK PERFORMANCE

Abstract

The paper assessed credit recovery as a panacea for sustainable bank performance, using the Bank of Agriculture, Kaduna, as the basis for investigation. The theoretical basis for the study was obtained through review of related literature. A survey design method was employed in this study and data for the study were generated from primary source using questionnaire as the instrument. Data were presented in tables and Likert’s 5 points rating scale and analyzed quantitatively using the arithmetic mean. For the purpose of this analysis, 4 research questions were formulated to generate answers. After analyzing the data from various sources, the result of the study showed that good credit management strategy has a positive impact on the profitability of the bank, increases the level of patronage by the bank’s customers thereby contributing to increase in its profit margin. The study therefore came to conclusion that good credit recovery measures have a significant effect on sustainable organizational performance. Based on the findings of this study, it was strongly recommended that the risk covered under the scheme should be purely farmers loss due to natural calamities and other accidents such as bush fire BOA should insist that a farmer seeking large loan on long term basis should insure his farm under the scheme.