ABSTRACT
This study is all about
the management of bank debt in Nigeria banking system, scopes and remedies.
It is designed to
evaluate the problem of bad debt in banking lending. It is also assets how
effective the customers could help the banker to appraise a customer presenting
lending proposition.
Findings from this study
indicate that bad debt has being a tax brother to the banking industries. Bank
can stand squarely without giving loan to the customer because they receive
back
some
percentage of interest accrue former
the principle.
But due to lack of
sincerity people cannot pay back their loans. This leaving those loans
outstanding. The implication for both the bank and their customers as regards
ability to debt obligation is quite obvious.
It is when a banker is
satisfied with the credibility of the customer that they will demand for a
security to back up the loan. This is the center of the project.
TABLE
OF CONTENT
CHAPTER ONE
1.0 Introduction
1.1 background of the
study
1.2 statement of problem
1.3 objective of the
study
1.4 delimitation scope
and limitation of the problem
1.5 definition of terms
Reference
CHAPTER TWO
2.0 review of related
literature
2.1 credit management
2.2 securities for bank
lending
2.3 causes of bad debts
reference
CHAPTER THREE
3.0 research design of
methodology
3.1 sources of data
3.2 method of data
reference
CHAPTER FOUR
4.0 data presentation
reference
CHAPTER FIVE
5.0 conclusions and
recommendation
5.1 summary
5.2 recommendation
5.3 conclusions
bibliography
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE
STUDY
Banks have been credited
generally with enviable role of being a very important source of funds or
capital for the development of the economy.
This recognition largely
emanates from the roles assumed by most banking institutions in mobilizing
various deposits and channeling some towards feasible and viable ventures. This
size, type and level of such profitable outlet along with other complimentary
factors contribute to economy well being of the country in which the bank is
situated. As a result of this, banking institutions have been an agent of
economic growth and perhaps economic development.
This deposit which are
loanable funds can only be made available to banks, if customer make
substantial deposit which banks in turn employ to make loan and advance
available to borrower so as to generate interest which may accrue from the
advances.
This enables the bank to
run its day-to-day administrative cost, remain in business and pay satisfactory
divided to its shareholders.
1.2 STATEMENT OF
PROBLEMS:
It is unfortunate that
the borrowers take undue advantage of these loan and advances granted to them
by not utilizing them for the purpose for which were given hence bringing about
default in the repayment of such loans and subsequent bad debts.
So, bad debt can be
defined as unrecoverable debts. The borrower consistent inconsistency in
response to demand for the repayment of loan and make it extremely difficult
for other intending borrowers or fund seeker to avail themselves of the
opportunity of enjoying such facilities among other consequences.
1.3 The project work
therefore is aimed at evaluating the following points:
(a) To evaluate the
problem of bad debts in banking lending
(b) To identifying its
remote and immediate causes.
(C) To determine its
effects to the economy in general.
(d) To make
recommendation on how possible.
1.5 DEFINITION OF TERMS:
1. BANK: Otherwise specially stated bank in this study
refer to commercial banks. Commercial bank is described by the banking act,
19689 as a bank whose business include the acceptance of deposit, withdrawal by
cheque include loans and advances.
2. CAPITAL: This is the amount used for the
commencement of business with addition subsequently made. It is also a set
aside wealth for the production of more wealth.
3. LOAN CREDIT RISK: This is the profitability that a borrower may
not repay the loan granted him by the bank.
4. MONEY RATE: This entails the possibility of value of money
increasing or decreasing.
5. MARKET RATE: The
probability of the interest rate change.
Department | Banking and Finance |
Project ID Code | BFN0023 |
Chapters | 5 Chapters |
No of Pages | 28 pages |
Methodology | Null |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2348039638328 |
Contact Us On | +2347026816414 |
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