ProjectClue.com We're Ready, Call Us

(+234) 07030248044

Project Topic:

LOAN SYNDICATION IMPACT ON THE NIGERIA ECONOMY

Project Information:

 Format: MS WORD ::   Chapters: 1 - 5  ::   Pages: 76 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   756 people found this useful

Project Department:

ACCOUNTING UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

Project Body:

ABSTRACT
The study was focused on the study of loan syndication in the Nigeria financial market and its impact on the economy. The study examines the extent to which loan syndication has contributed to the performance of the Nigeria enterprise. Data was collected through the administration of the questionnaire numbering eighty (80) of which sixty-seven (67) were answered and returned. The response form the return questionnaire form the data for the research work.. This data were analyze on the bases of simple percentages while the Chi – square were employed in the test of the hypothesis 
The study reveals that loan syndication has improved the performance of the Nigeria enterprise. It has not been significantly being applied in the basis of the finding made. It was recommended that participating bank in loan syndication business should endeavor to set up distinct department or section with good management structure capable of dealing with the cooperate borrowers seeking for syndication loans and that banks should be involved in a lot of innovation programme that will increase their deposit base in order to comprehensively eliminate the fear of a possible liquidating that may arise from making syndication loan which one major reason for which should shy away from providing adequate syndication facilities to industrialist. 

 

Table Of Content
Title Page
Approval Page 
Dedication
Acknowledgement
Abstract
Table Of Content

Chapter One:
1.0 Introduction 

1.1 Statement Of Problems
1.2 Objective Of Study
1.3 Significance Of Study
1.4 Research Hypothesis 
1.5 Scope And Limitations Of This Study
1.6 Definition Of Terms

Chapter Two:
2.1 Review Related To Literature

2.2 Background Of The Loan Syndication 
2.3 Other Financial Market
2.4 Internationalization Of The Capital Market 
2.5 Purpose Of Syndicating Loan
2.6 Parties To Loan Syndication 
2.7 Contribution Of Syndication In Project Financing 
2.8 Problem Of Prospect Of Loan Syndication In The Nigeria Financial Market

Chapter Three:
3.1 Research Design And Methodology 

3.2 Sample Procedure 
3.3 Data Collection 
3.4 Data Analysis Techniques
3.5 Determination Of The Sample Size

Chapter Four:
4.1 Data Presentation And Analysis 

4.2 Test Of Hypothesis

Chapter Five:
5.1 Summaries, Conclusion And Recommendation 

5.2 Findings 
5.3 Conclusion 
5.4 Biography
5.5 Questionnaires And Appendix
Biography 
Appendix/Questionnaire 

 

CHAPTER ONE

BACKGROUND OF THE STUDY
The origin of the syndication loan was traced to the bankers of the middle age who distributing their financial risk among several house to support the trade flow. This system was more on a participating basis, then a formalize syndication as the lender did not adopt one common loan documentation.
In Nigeria loan syndication can be trace to the 60’s. When a consortium of the commercial bank and the acceptance house discounted trade bills for the marketing board under the produce bill financial scheme, formalize loan syndication came into been during the oil boom of 70’s where there was need for adequate capital to finance the industrialization programme.
During the programme, few of the merchant banks have been incorporated.
Loan syndication has assumed international dimension because of he need to provide the capital to finance the fast growing world economy.
An international syndication credit is managed and was under written by one more financial institution normally from access t more than its currencies of domicile

STATEMENT OF THE PROBLEMS 
The management of loan syndication in the Nigeria financial market has always been the a problem to the enterprise and that is why I am conducting a research on the topic looking bank as the origin of the syndicate loan which traced back on the bankers of the middle age who distributed their financial risk amongst several house to support the trade flow. This system was more on participating basis than on formalize syndication, as lenders did not adopt one common loan documentation.
The problem mogul comes from the delay in packaging and putting the credit in place before disbursement to the borrowers. Some of the bank is invited by the lead bank to participate in syndication by decline and come up with reasons like loan growth constraint, liquidity problem etc. some syndicated loan takes up to two yeas to conclude. After the loan has been disbursed, another problem can arise in cooperate attitude of the borrowers in meeting and condition stated in the loan agreement such as submission of progress report quarterly management account. The payment of the interest and principle when due occasionally pose some problems. The borrowers may be facing a liquidity problem, low sale and income earn, diversion of working capital into acquisition of fixed asset etc, such problem is not properly handled may lead to rescheduling and restructurings and refinancing the loan.

OBJECTIVE OF THE STUDY
a. To ascertain the adequacy of the syndicated loan provided by the bank to the industrialist.
b. To assertion the effect of long term syndicated loan on the liquidity position of the bank in Nigeria.
c. To ascertain the extent to which management structure has affected loan syndication business in Nigeria. 
d. To determine the increase of disagreement between the lead bank and the participating bank in loan syndication business
e. To identify the problem encountered in the documentation process of syndicating loan.
f. To highlight the prospect of loan syndication to both the users of the loan and the bank that extend the credit.

SIGNIFICANCE OF THE STUDY
There are two main parties to loan syndication;
a. The lender
b. The borrowers
The lender bank is appointed and is called the agent bank or the lead bank. It the agent bank of the lenders and its main duty if monitor the disbursement and utilization and repayment of the credit as per the lending agreement.
The borrower consists of the following;

a. Individual customers 
b. Operations.
The borrower will usably channels its request to a bank with which it has already establish a relationship or alternatively to a bank it has carefully chosen based on the perception or the easement of its expertise and ability to deliver. It may also channel the request to a number of banks calling for bids of offers with a bid to select the most favorable offer. The bank of the borrowers choice which agree to raise the required amount is known as the lead bank of the syndication

RESEARCH HYPOTHESIS 
Ho: Loan syndication has not been applies to a syndication extent by the Nigeria enterprise in project financing 
Hi: Loan syndication has been applies to a syndication extent by the Nigeria enterprise in project financing 
Ho: Syndicated loan are not adequate to industrialist in Nigeria 
Hi: Syndicated loan are adequate to industrialist in Nigeria

Scope and limitation of the study 
This study deals with the Nigeria financial market and their impact and contribution to the industrialist and to the economy in general through granting of syndicated loan. This research also dealt briefly on other countries financial market as it relates to loan syndication. One area of militating the financial resources and the time available to carry out the research in the same vain, non-reliability of the relevant data from the bank posed a big problem while the inability of the bank official to release some of the research work also affected the quality of the research.

DEFINITION OF TERM 
a. Syndicated loan is normally carried out by merchant bank through the coming together of the financial institution for the purpose of providing large fund to the client who may or may not be a customer to all the different institution participating in the execution of the loan facility. The single idea is that each individual lender is bound by one loan agreement as lender and borrowers.
b. Finical market: this is the market form which large companies and financial enterprise attract long term investment fund through the network of the financial institution and stock brokers licensed to perform capital market function.
c. Loan: this is credit facility granted to a customer which is installmentally repayable over a specified period of time 
d. Financial house: a financial house is a financial enterprise, which specialize in providing fund to buy major asset. On the other hand, financial house are non-banking institution, which usually perform some of the function of bank but on a small scale. 
e. Lead bank: the bank of the borrowers choice that agrees to raise the required amount either on a best effort base or under written obligation.
f. Agent bank: this an administrator of the loan
g. Capital market: this is market for medium and long-term loans. A merchant bank is a player in this market.

Get the complete project »

Instant Share On Social Media:

OTHER SIMILAR ACCOUNTING PROJECTS AND MATERIALS

AN APPRAISAL OF THE IMPLICATION OF ELECTRONIC BANKING IN NIGERIA BANKS (A CASE STUDY OF ACCESS BANK)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 67 ::   Attributes: Secondary data, Data Analysis,Abstract  ::   3394 engagements

CHAPTER TWO REVIEW OF RELATED LITERATURE Electronic banking in Nigeria has overtime been viewed by many especially economists as having a lot of implications on the economy of Nigeria and especially...Continue reading »

A CRITICAL ANALYSIS OF THE USE OF FINANCIAL STATEMENTS IN ASSESSING THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIRST BANK NIGERIA)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 75 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   2986 engagements

ABSTRACT The study was carried out to analyse how an organization performs making use of the financial statements with First Bank of Nigeria Plc serving as the case study. the study disclosed that th...Continue reading »

AN EVALUATION OF THE PERFORMANCE OF NIGERIAN STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIA ( A CASE STUDY OF NIGERIAN STOCK EXCHANGE)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 78 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1300 engagements

HISTORICAL BACKGROUND OF THE NIGERIA STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIAN. The nigeria stock excahnge denoted by NSE is a government establishment where stocks are traded on a daill...Continue reading »

APPLICATION OF BUDGETS AND BUDGETARY CONTROL MEASURES IN A NON-PROFIT ORGANIZATION: A CASE STUDY OF APOSTOLIC CHURCH, DELTA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 76 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1583 engagements

2.1 CONCEPTUAL FRAMEWORK A budget is can be defined by accountants as “a planned outcome to be generated and for the expenditure to ensure during that period and the capital to be employed to a...Continue reading »

ASSESSING BOOK-KEEPING PRACTICES OF SMALL AND MEDIUM SCALE ENTERPRISES IN CALABAR LOCAL GOVERNMENT AREA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 69 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1354 engagements

ABSTRACT The economy of Nigeria cannot function properly or thrive without the micro, small and medium scale enterprises (SMEs). These small scale enterprises cannot function properly if they are not ...Continue reading »

ASSESSMENT OF ADEQUATE RISK RECOGNITION AND MANAGEMENT IN NIGERIAN INSURANCE COMPANIES (A CASE STUDY OF UNION ASSURANCE COMPANY, UYO)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 86 ::   Attributes: Questionnaire, Data Analysis  ::   863 engagements

THE CONCEPT OF RISK Risk has been the subject of study by different scholars over the years with several meaning and definitions. But the most accepted definitions are that of J.E Banister and P.A Baw...Continue reading »

What are looking for today?

WHAT OUR CUSTOMERS ARE SAYING:
  • 1. Taleeb from Kwara state polytechnic said "I like all topics on this website but anytime i wrote topic to my project supervisor he used to ask where is the case study and case study is not written there . thanks ................".
    Rating: Very Good
  • 2. Donald from ui said "i thank you guys for the good work...i never believe that there are still some Nigerians that are trustworthy until i stumbled upon projectclue. excellent job. great write up. weldone Glory keep up the good job. nice voice.,...i will always recommend projectclue to any Nigerian researchers...God bless.".
    Rating: Very Good
  • 3. Abdoulrasheed Tapheeda from Taraba State University,Jalingo said "The Project Clue owe me a Tribute Respect, because of the nature of their work and delivery system. I recommend this site for any undergraduate due to the quality and fast delivery system of their work. Thanks".
    Rating: Excellent
  • 4. Sam Seyil from Federal Uni Agric. Markudi said "I had a wonderful experience using ProjectClue, they delivered not only on time, but the content had good quality. I recommend ProjectClue for any project research work.".
    Rating: Excellent
  • 5. Eval, Effa A. from University of Calabar (Unical) said "It was a wonderful experience using projectClue, it really helped me in carrying out a Term paper research NGP.".
    Rating: Good
  • 6. Abimbola Bisola from Obafemi Awolowo University said "Thanks a million times for giving me a quality research project. not only have i defended i was commended by my supervisor. You guys are the best; Project clue".
    Rating: Very Good

Leave a comment: