ABSTRACT

Nigeria, the world recognized economic hub of African continent because of her natural and human resources experienced low economic activities as a result of what experts refers to as economic recession. The purpose of this study was examined effect of economic recession on Nigerian banks in Kaduna State. Quantitative approach, and a survey method with 41 commercial bank employees in Kaduna State. Pearson Product Moment Correlation Coefficient (PPMC) was used to test significant relationship between variables in hypotheses. Results suggested that economic recession has negative relationship on bank’s lending to customers in Kaduna State. Findings showed negative relationship between economic recession and bank’s loan recovery. The paper found negative relationship between economic recession and banks stability in Kaduna state. In view of the findings, this paper concluded that recession leads to decline in gross domestic products; increases unemployment rate, high inflation rate and poor living standards of people. The study was assessed using both managers and loan officers from commercial banks in Kaduna State. There is need for central bank of Nigeria to assist commercial banks during economic recession with special funds to enable banks to fulfill its obligations to customers. The results of this study contribute to the frontier of knowledge regarding the effects of economic recession on bank’s lending, loan recovery and banks stability.