ProjectClue.com We're Ready, Call Us

(+234) 07030248044

Project Topic:

AN EVALUATION OF CREDIT MANAGEMENT AND THE INCIDENT OF BAD DEBT IN NIGERIA COMMERCIAL BANK

Project Information:

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 52 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   1,589 people found this useful

Project Department:

BANKING FINANCE UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

Project Body:

CHAPTER ONE

INTRODUCTION

BACKGROUND INFORMATION OF THE STUDY

In a modern Economy there is distinction between the surplus economic unit and the deficit in consequences a separation of the saving investment mechanism. This has necessitated the existence of financial institution whose job includes the transfer of fund from sales to investors. One such institution is the commercial bank.  The intermediating roles of the banks places them in a position of trustees of the saving of the widely dispersed surplus economic unit as well the determinant of the rate and shape of economic development.  The techniques employed banks in this intermediating function should provide them with perfect acknowledge of the out come of a lending such that funds will be allocated to investment in which the probability of full repayment is certain.

However, in practice no such tools can be found in the decision of the lending bank virtually all lending decision are made under condition of uncertainty. They risk and uncertain associated with lending decisions. Situation are so great that the concepts of risk and risk analysis need to be employed by lending banker in order to facilitate sound decision making and judgment.

The increasing trend of provision for bad and doubtful debts most commercial bank is a major source of concern not only to management but also to the  share holder who are becoming more aware of the damage posed by these debts. Bad debt destroy part of the earning assets of bank such as loans and advance which have been described as the main source of earning and also determine the liquidity and solvency of banks.  In the other words bad debt in commercial bank generate two major problem that is profitability problems. Bad debt emotive words to bankers. Because they represent losses to banks.  There are various reason for the occurrence of bad debt and its impart on the banking operation.

CAUSES OF BAD DEBT: The causes of bad debt could be based on four main classified causative agents. They are a follows. Borrowers/Customers

Banks

Government

Nature related factors

1.                 BORROWERS/CUSTOMERS:

IGNORANCE: Customer are ignorance for the fact that bank like other commercial ventures are out to make profit by selling their product (loan) instead they understood it to be a place where government and other will- to –do people stove they money.

Consequently, they regard any amount borrowed to be “ national case” them as an articles purchased which must be paid for on the part of our etiles in white they gratuity which should not be repaid.  Again some customer/borrower over invest the loan approved on infrastructure to the betterment of actual purpose. This creates a situation factor thereby occasioning bad debts.

1.       BANKS

This concerns efficient disbursement and amortizing

schedule be bank. This relate to poor evaluation of customers; The first point which readily come to mind for this bad debt is poor evaluation of customer by the supervision before giving out loan to them. The pre requisite for giving out loan is on the consideration of the following.

CHARACTER: The likelihood that customer will try to honour obligation

CAPACITY: The subjective appraisal of the customer ability to pay.

COLLATERAL: assets that customer may offer as security to obtain credit

Condition: Impact on general or specific economic trend.

          (ii)     High Interest chargeable by bank sometimes occasioned a

situation of bad debt because the interest adds to increase the amount to be repaid.

(iii)    Absence of forum by bank for enlightenment education of

customers resulting to bar to procedure on report lodgment for joint solution.

(iv)    Improper evaluation of profit by bank

 

Get the complete project »


Instant Share On Social Media:


Can't find what you are looking for?
Call (+234) 07030248044.

OTHER SIMILAR BANKING FINANCE PROJECTS AND MATERIALS

A CRITICAL ANALYSIS OF CAUSES AND PROBLEM OF FINANCIAL DISTRESS IN NIGERIA BANKING SECTOR (A CASE STUDY OF AFEX BANK PLC.)

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 68 ::   Attributes: Questionnaire, Data Analysis,Abstract

CHAPTER ONE INTRODUCTION The importance of capital as a necessity though not sufficient condition for economic growth is recognized in development economy where it is believed that the position of ...Continue reading »

A CRITICAL ANALYSIS OF THE USE OF FINANCIAL REPORT IN ASSESSING BANK PERFORMANCE. (A CASE STUDY UNION BANK OF NIGERIA PLC)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 72 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   5023 engagements

CHAPTER ONE INTRUDUCTION BACKGROUND OF STUDY A farmer, who plants corps, expects result, similarly to student who sits for examination expects results. The same 5 also true of an investor. For the ...Continue reading »

A CRITICAL ANALYSIS ON 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: 72 ::   Attributes: Questionnaire, Data Analysis  ::   18202 engagements

ABSTRACT This project work is carried out to examine the contribution of micro finance banks to the development of Small and medium scale enterprises in Nigeria. The Brass micro finance bank is used a...Continue reading »

A CRITICAL APPRAISAL OF CURRENT ASSETS MANAGEMENT IN PUBLIC LIMITED LIABILITY COMPANIES

 Format: MS WORD ::   Chapters: 1 - 5  ::   Pages: 80 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   3640 engagements

ABSTRACT This project examined the management of current assets in public Limited Liability Company. It is obvious that no company can perform well without good current asset management. This cares f...Continue reading »

A CRITICAL APPRAISAL OF CURRENT ASSETS MANAGEMENT IN PUBLIC LIMITED LIABILITY COMPANIES

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 55 ::   Attributes: Questionnaire, Data Analysis, Abstract

CHAPTER ONE 1.0 INTRUDUCTION: Current assets as one of the management tolls of business organization are very important in the proper function of business and achievement of organizational goal. Cur...Continue reading »

A CRITICAL ASSESSMENT OF THE SURVIVAL STRATEGIES OF DEPOSIT MONEY BANKS IN A DEPRESSED ECONOMY

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 68 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1808 engagements

CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Nigerian economy is faced with national and global economic challenges and as such, the financial institutions, especially the banking sector ha...Continue reading »

What are looking for today?

WHAT OUR CUSTOMERS ARE SAYING:
  • 1. Abubakar Sani from Nigerian Investment Promotion Commission 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
  • 2. Ogunniran Olawale from Ekiti state university said "Projectclue is really safe and reliable Quick access to project works Nice customer service Fast delivery of request Recommend this toy fellow students ".
    Rating: Excellent
  • 3. Fahat Nasir from isa kaita college of education dutsinma said "Fish farming a solution unemployment ".
    Rating: Very Good
  • 4. Ajimbi Oluwarotimi from Theology school osun said "Good ".
    Rating: Very Good
  • 5. Clement Abdullahi Ogiji from National Open University of Nigeria said "I am a living witness and have recommended project clue to a lot of students, so far none have been disappointed, very reliable and, trustworthy and dependable".
    Rating: Excellent
  • 6. Jhuee from Sultan national high school said "Good quality. I recommend project clue for any project research work.".
    Rating: Excellent