Assessment of the Five Cs of Credit in the Lending Requirements of the Nigerian Commercial Banks

Credit evaluation and decision like any investment requires utmost due diligence from the makers to avoid high default rates. It is expected of lender apply caution all way by eliminating forms asymmetry information that could lead adverse selection non-performing loans. To rates jeopardize lender’s going concern profitability, silent C emedded in five Cs credit. The study administered a structured questionnaire Nigerian banks survived 2005 recapitalization era were still operations at time this study. While questions required respondents rank credit based on importance their policy practice attached them, hypothesis tested centred impacts risk asset quality. qualitative data also analyzed using module SPSS statistical software. observed have direct significant correlation with quality (non-performing loan ratio). recommended Caution which it considered as slient embedded only provided should be watchword throughout management process. imay pertinent note while traditional (character, capacity, capital, collateral conditions) are borrower, check Cs.