Credit exchanges and advances

 With the increment of credit exchanges and advanced clients in the country's economy, credit development has been seen in the Nigerian monetary area. The pattern of occasions in this area shows that bank store credit proportion builds every day as the economy develops day by day. Be that as it may, credit risk has been on the expansion with an increment in advance requests. Customarily, credit was made accessible in relationship with one's monetary status, business maintainability, notoriety and liquidity, however the shaky circumstance of the Nigerian monetary market makes it challenging for banks to depend on the previously mentioned determinants. Business conditions are frequently capricious and can prompt changes in the borrower's monetary position and influence their capacity to reimburse the advances at the date of development. Credit risk management solutions

Credit risk of losing part

With the above situation, the bank faces a credit risk of losing part or the whole advance including the

premium receivable on such advances. This adversely influences the bank and lessens its monetary

solidarity to meet its monetary commitments as they fall due. As these circumstances stay

unrestrained, the liquidity of the bank is likewise undermined. Liquidity is considered as the

accomplishment of a bank, whose wasteful management comprises a tremendous issue to the two

banks and the economy overall. 

Unfortunate credit and liquidity management

The far responding outcomes of unfortunate credit and liquidity management separated from decrease

in benefit remember loss of certainty for the bank's capacity to satisfy its present moment and long

haul commitments, absence of trust with respect to contributors and different clients the same and the

corresponding decrease in the degree of tasks despite the significance of credit and liquidity risk

management to bank endurance, no paper has up until this point dissected the connection among

credit and liquidity risk on a wide reach and its various aspects in the Nigerian financial industry. As an

outcome, numerous significant inquiries with respect to this subject stay unanswered.