-
-
$
Product Category: Projects
Product Code: 00000458
No of Pages: 87
No of Chapters: 5
File Format: Microsoft Word
Price :
$20
$
ABSTRACT
The
research work is basically concerned with the effectiveness of credit
management in the banking industry. It will also discuss about the emergence of
banking industry in
The
research will also discuss about the meaning, benefit of banking industry,
purpose of banking industry, causes and types of lending and credit facility
and tools used in loan monitoring and supervision.
This
research work will be divided into five (5) chapters in – order to have a
better understanding of the subject matter and aid locating of different
chapters and numbers where they can be found.
Chapter
one will discuss the purpose and objectives of
the
study, scope and limitation of study.
Chapter
two will cover the reviewing of different literature
from
different author that are relevant to the project.
Chapter
three will be based on the research methods used in carrying out the research
work.
Chapter
four is the presentation and analysis of data used.
Finally
chapter five will being summary of the work, recommendation, conclusions and
references.
TABLE OF CONTENTS
Title Page i
Certification ii
Dedication iii
Acknowledgement iv
Table of Contents vi
Proposal viii
CHAPTER
ONE
1.0 Introduction 1
1.1
Objective of the study 6
1.2
Scope of the study 7
1.3
Limitation of the study 7
1.4
Background of the study 8
1.5
Statement of the problem 10
1.6
Definition of terms 11
1.7
Plans of the study 13
CHAPTER
TWO
2.1
Review of related literature 15
CHAPTER
THREE
3.0
Research methodology 38
3.1
Background of the studies 38
3.2
Source of data 32
3.3
Analysis of Data 39
3.4
Historical background of the case
study 40
3.5
Corporate Organization structure 44
3.6
Sample Size 45
3.7
Population of the study 46
CHAPTER
FOUR
4.1
Data presentation, interpretation and analysis 48
4.2
Source of Field Summary 48
4.3
Research findings 67
CHAPTER
5
Summary, conclusion and recommendation 70
5.1
Summary 70
5.2
Recommendation 72
5.3
Conclusion 78
References 79
CHAPTER
1.0 INTRODUCTION
It
is an established fact that Banking industry occupies a prominent position in
the
However, since the provision and
efficient management of this scarce resource is best facilitated by the
existence and appropriate function of financial institutions in the economy. It
therefore follows that banks have a vital role to play by making their vast
financial resources available for financing and promoting economic development
banks play this unique role through granting of loans which constitute a vital
function in banking operations, because of its direct effect on economic growth
and business development. Loans and bank lending which is the primary function
of commercial banks. It is the single most important source of gross income for
the commercial banks.
Lending contributes the larger part to a
bank’s profit, hence, it is the backbone of banking activities however, the
degrees of risk associated with lending is proportionate to it contribution to
profit.
As financial intermediaries, banks
assist in channeling funds form surplus economic development generally. Since
these funds are owned by third demands the depositors, prudence demands that
such funds should be efficiently managed to sustain the confidence of
depositors in the banking system and ensure the continued soundless of the
system itself and thereby minimize risk of the bank failures.
Unlike the depositor who is certain of
getting his money back on demand and, or when due a lending bankers is faced with
the problem of either delay in reimbursement or out right non-reimbursement by
the borrowers. As in case of National Bank of
In January 1993, the newly reconstituted
management of Owena Bank Plc, discovered several cases of expenses incurred but
not properly booked, unearned income over statement and above all several
unsecured, unanalyzed loans which are not charged off or provisioned lack of
commercial orientation is also glaring in the management and administration of
staff leans in Owena Bank Plc.
By February 1993, total outstanding
staff loans was at over N60 million (sixty million Naira) exceed the bank’s
paid gross loans. These loans are granted at 28% interest rate per annual
against the prevailing cost of loans are said to have been used not for the
purpose originally intended and are not support with documentation to secure
the bank’s interest.
Many bank’s in
Nevertheless, this worrisome position of
banking industry in
From the above therefore, the need for effective administration of credit to customers cannot be over-emphasized. Thus, the effective supervision and monitoring loans to ensure that they do not turn bad forms the theme of this study. A credit to beneficial to the bank only when the principle and interest are fully paid.
1.1 PURPOSE
The main purpose of the study is to
measure the credit administration pattern of commercial banks using first bank
Nigeria Plc as the case study.
The specific objectives of the study
are:
a.
To examine the credit policy and
practices of first bank
b.
To review the credit administration
and control procedures in the bank.
c.
To examine the management of bad debts
and recovery process in the bank.
d.
To measure the effective of the
procedure adopted in B and C above.
e.
To identify constraints associated
with loan management
f.
To make recommendations based on the
finding of the study.
1.2 SCOPE OF STUDY
The study covers lending operation of
first bank Nigeria plc which constitute less than one percent of the total
number of banks currently licensed to operate banking business in
1.3 LIMITATION OF STUDY
Apart from the financial and time
constraints that limited the scope of study, a bank selected out of 90 banks
operating in the commercial banks in the country could not be a said to be a
good representation or sample of banks required to generalized the lending
policies and practices in the
1.4 BACKGROUND OF THE STUDY
First bank of Nigeria plc, for over a
century, has distinguished itself as a leading banking institution and major
contributor to the economic advancement and development of
Founded in 1894 by a shipping magnate
from
The bank was incorporated as a limited
liability company on Marc 31, 1894, with head office in
To justify its west African coverage, a
branch was opened in
Currently with 339 branches spread
throughout the federation, the bank maintains the largest branch network in the
industry.
1.5 STATEMENT OF THE PROBLEM
One
of the most important problems of the organization is lack of adequate finance
to carry out their function successfully.
It is believed that availability of fund
can yield so good result and contributed to the stability of an organization.
Also lack of enough manpower can lead to laxity in all areas of financial
management in an organization. Frustration of these desires of credit
management could lead to collapse of an organization. So credit management is
very important to an organization in such organization is to survive any
economic crisis.
In the light of above, this research
intends to find out whether this good and strong credit management which will
be supported with interview and it there are laxities in any area, the research
intend to sort out what measures to take.
1.6 DEFINITION OF TERMS
1.
Overdraft:
this is when a customer is given a limit within which his account may be
overdrawn. Overdraft is granted normally for working capital purpose and amount
is expected to fluctuate over the life of the facility, depending on the
customer’s working capital needs at a given time.
2.
periodic
statistics: A periodic statistical return of
customer’s account operation either weekly, monthly or quarterly helps in
assessing the performance of the credit customer as well as detecting any
danger signal
3.
Advance:
an advance is a short term loan extended period usually 30-180 days. Advances
are normally granted for specific consideration e.g. payment of school fees.
Settlement of medical bill payment of collection, bridging finance etc.
4.
Daily
balance: Keeping customers daily balances accounts as
contained in the computer print-out or ledger balanced, provides a good tool in
watching the movement of the account. Any unexpected or strange figure showing
on a customer’s account should be investigated.
5.
Long
term loan: this loan is mostly granted for
projects with longer duration such as oil exploration, real estate, equipment
financing such as oil rings, computers etc. by the nature of such investment,
their maturity is generally (ten) 10 years and above.
6.
Medium
term loan: this loan is generally granted for a single
purpose such as investment equipment financing, housing, purchase etc. the
duration of the loan is generally longer than overdrafts and range usually
between 1 and 5 years.
7.
Short
term loan: There are loans made available for use
for a period of (one) 1 year or less. The cost of short term borrowing in lower
than cost of long term borrowings since a lender of long term long will have to
wait further into the uncertain future to have his loan repaid. It is obvious that
he will demand a higher rate of interest.
8.
Contingent
facilities: There are ‘non cash facilities of an
contingent nature required by customers from their banker in order to
facilitate their operations.
1.7 PLANS OF THE STUDY
This research work is divided into
(five) 5 chapters, chapter one is the general introduction of the study,
background of the study, scope of the study limitation of the study etc.
Chapter two the review of related
literature of the study.
Chapter three disucsses the method used in
gathering information and method of analysis.
Chapter four reveals data presentation,
data interpretation data analysis and research findings.
The last chapter which is chapter five discusses summary, recommendation and conclusion.
Buyers has the right to create
dispute within seven (7) days of purchase for 100% refund request when
you experience issue with the file received.
Dispute can only be created when
you receive a corrupt file, a wrong file or irregularities in the table of
contents and content of the file you received.
ProjectShelve.com shall either
provide the appropriate file within 48hrs or
send refund excluding your bank transaction charges. Term and
Conditions are applied.
Buyers are expected to confirm
that the material you are paying for is available on our website
ProjectShelve.com and you have selected the right material, you have also gone
through the preliminary pages and it interests you before payment. DO NOT MAKE
BANK PAYMENT IF YOUR TOPIC IS NOT ON THE WEBSITE.
In case of payment for a
material not available on ProjectShelve.com, the management of
ProjectShelve.com has the right to keep your money until you send a topic that
is available on our website within 48 hours.
You cannot change topic after receiving material of the topic you ordered and paid for.
No Review Found.
Login To Comment