ABSTRACT
Credit management facilities, the never centre of all commercial banks
operations and in its efficiency guarantees, the ability to mobilize deposit
and allocate such finds to customers when have need for them.
This research work examined the credit
facilities and loans management of First bank of Nigeria Plc Ughelli main
branch Delta state with a view to ascertain the causes of loan failure, types
of securities needed, importance of collecting securities from the prospective
borrowers etc and time of loan maturity.
The findings from analysis show that first bank of Nigeria plc (delta state)
recorded impressive results in the normal business operation due to the
increase in assets, high deposits a vary in the credit management.
In conclusion, it was recommend that lending officers should be trained,
customers, should be educated management should be flexible in the speculations
of its credit management facility or policy in order to absorb the
unpredictable posture of government monetary policy guidelines. Also avoid
delays infestation arising from failure to secure bank facilities customers
should be given current bank credit policies guidelines.
TABLE OF CONTENTS
CHAPTER ONE
1.0 Introduction
1.2 Background
to the study
1.3 Statement
of the problem
1.4 The
objective or purpose of the study
1.5 Scope
or delimitation of the study
1.6 Research
questions
1.7 Significance/
rativenaire of the study
1.8 Definition
of terms
CHAPTER TWO
2.0 Review
of literature
Summary of Related reviewed literature
CHAPTER
THREE
3.0 Methodology
3.1
Research design
3.2 Area
of study
3.3 Population
of the study
3.4 Sample
and sampling procedure
3.5 Instrument
for data collection
3.6 Validation
of the research instrument
3.7 Reliability
of the research instrument
3.8 Method
of administration of the research instrument
3.9 Method
of data analysis
CHAPTER FOUR
4.0 Data
presentation and results
Summary of results/findings
CHAPTER
FIVE
5.0
Discussion, implication, recommendation
5.1 Discussion
of results
5.2 Conclusion
5.3 Implications
of the result
5.4 Recommendations
5.5 Suggestions
for further research
5.6 Limitation
of the study
Reference
Appendix
LIST OF TABLE
1 Questionnaires
I table 4.1.1
2 Questionnaires
II table 4.1.2
3 Questionnaires
III table 4.1.3
4 Ten
year financial statement summary table 4.1.4
5 Profit/loss
loans and advances recovery and provision for bad and doubtful debt table
4.1.5
6 Analysis
of five year financial summary (1999 – 2003) table 4.1.5
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
First bank of Nigeria
plc commenced banking in Nigeria 1894, after its corporation as a limited
liability company in London 31st March of the same year.
The bank name was change
to First bank of Nigeria plc as a result of significant event for over
100 yrs following the companies and allied matter act cp 54, in 1990 and
incompliance with the requirements of section 31.
In Delta state, the bank
has provide numerous customers across the state with the following commercial,
banking services eg current, saving, deposit accounts (fixed and short) loans
and over draft. Since inception and quantities services to its client. The bank
has expanded over the years and at present, it operate twelve (12) branches
throughout the state.
Management credit and
lending is the essences of commercial banking because it is through that,
commercial banks contribute to the stability and growth of the economy thereby
raising the standard of living of the population loans and advances constitutes
the most riskily assets in the investment portfolio and contribute higher
retires than
assets.
1.2
STATEMENT OF THE PROBLEM
Loan failure has bee a major problem in the Nigeria banking industry. This has
lend to the demise and near collapse of some of the banks in the country before
the Federal Government though the central bank of Nigeria (CBN) and the Nigeria
Deposit Insurance Corporation then life line to bail some out. The reason of
loan failure are stated below:
1) Natural
disaster fire, flood etc
2) Late
approval of loans by banks managers
3) Bad
and deficient credit management by bank managers
4) Inconsistent
government fiscal and monetary policies
5) Overtrading
by customers
6) Poor
monitoring loan officer
7) Quality
of securities banking facilities
8) Poor
feasibility planning
9) Political
lending
10) Client
could encounter serious production problem which could need injection of
additional finds.
1.3
THE OBJECTIVE OR THE PURPOSE OF THE STUDY
This project work is
aimed to examing the extent to which congruency exist the theory behind credit
management and it actual practice in the rear banking situation with reference
to First Bank of Nigeria plc ughelli Branch Delta state.
Function of credit analysis and control will be look into tin the area of
credit administration of improving thus minsing the probability of rejecting
prudent loan application on accepting imprudent ones. The study also intended
to achieve the following:-
1. To
determine the time of loan maturity
2. Other
requirement needed d big commercial banks apart form securities
3. Importance
of collecting securities from the prospective borrowers.
4. To
ascertain the causes of loan failure
5. Types
of secures needed by commercial bank.
1.4 RESEARCH
QUESTION
The reseach question will be base on how the
following:
1. What
is the relationship between interest income and performing and non performing
loan
2. What
is cause of loan failure
3. How
an bad debt be determining
4. How
can loan maturity determining
5. What
are the importance of collecting security from the prospective borrowers.
6. What
are securities needed by commercial banks
7. What
are the strategies use in determining the relationship between profitability of
loan and advances recovery from non performing loans, bad & doubtful debt.
8. What
are the solution to these problem.
1.6
SIGNIFICANCE OF THE STUDY
Commercial banks with in
the banking system indeed the end time system standard as the most dominant
sector.
The significance of the study will attempts to facilitate a full grasp and
understanding of management credit policies or facilities of commercial banks.
The finding and recommendations of this study will also serve as a resources of
input and information to the banks government and the general public. It will
be also useful for school students.
1.7
DEFINITIONS OF TERMS
Credit which is generally term loan and advances by bank is defined by Chamber
Encyelpeaeida Dictionary as depressed or implied contract whereby the property
of one person is transposed into the possession of another the borrower
undertaking to return the money lent to the owner while facilities is an extra
feature of checking service in bank with an overdraft.
A prudent loan: Loan spend wisely to give more profit to firm at a exact time.
Ie principal and interest are paid at this same time. Portfolio collection of
two or more assets.
Financial security: Documents give to person who provide financing for the
company as evidence of other contribution.
Balance sheet: Financial statement that list a firms assets and claims
(liabilities and owner equity) at a particular time.
Non – performing loan: Principal of interest are not paid at the limited period
ie repayment obligation are in arrears for over three month.
Imprudent loan: Are loan paid not at the exact time ie principal may be paid or
interest.
Loan maturity: Date loan mature or due to the amount of principal borrowed is
repaid on this data.
| Department | Banking and Finance |
| Project ID Code | BFN0302 |
| Chapters | 5 Chapters |
| No of Pages | 47 pages |
| Reference | YES |
| Format | Microsoft Word |
| Price | ₦4000, $15 |
|
|
|
| Contact Us On | +2347043069458 |