IMPACT OF OWNERSHIP STRUCTURE ON FINANCIAL PERFORMANCE OF LISTED COMMERCIAL BANKS IN NIGERIA

This study investigated the impact of ownership structure on credit risk management practices in listed commercial banks in Nigeria. Specifically, it examines how different types of ownership block ownership, institutional ownership, foreign ownership and managerial ownership affect the management of credit risk within these banks. The research employs a quantitative methodology, utilizing secondary data collected from the financial statements of fourteen Nigerian commercial banks over a five-year period (2020 – 2024). The findings reveal that the block ownership does not significantly influence credit risk practices, with a negligible correlation identified. Similarly, institutional ownership shows no significant impact on credit risk management. Foreign ownership was found to have a weak negative relationship with credit risk management, suggesting a minor influence that does not reach statistical significance. Managerial ownership similarly exhibited no significant effect on credit risk management practices indicating that the alignment of interests through managerial stakes does not translate into effective risk strategies. The study includes that ownership structure, while relevant, does not play a decisive role in shaping credit risk management practices in Nigerian commercial banks. Instead, factors such as regulatory compliance and corporate governance are likely more influenced. The findings suggest that banks should focus on enhancing their governance frameworks and management strategies rather than relying on ownership structure to drive credit risk outcomes. Additionally, the study highlights the need for further research to explore other variable that may impact credit risk management in the evolving landscape of the Nigerian banking sector. Keywords: Ownership Structure, Credit Risk Management, Block Ownership, Foreign Ownership, Institutional Ownership, Managerial Ownership, Listed Commercial Banks in Nigeria.