Key Features:

- No of Pages: 50

- No of Chapters: 05

- Contains tables

- Contains diagram

- Questionnaire is attached

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Introduction:

Abstract

This research work was undertaken to assess the credit management and the incidence of Bad debts in Money-Deposit Banks. This work was intended to achieve the following objectives: to appraise and determine the lending procedure of banks, to highlight the extent to which improper project evaluation influence bad debt of Money-Deposit Banks.



Relevant data were collected from both primary and secondary sources. Questionnaire was the main primary data collected instrument employed while data from various relevant publications constituted the sources of secondary data. Upon the analysis of data, the following conclusions were drawn; that sound lending requires a clear-well articulated and easy accessible policy document which spells out the philosophy of lending. On the basis of the above findings, it was recommended that banks should ensure that loans given out to customers should be backed by adequate collateral security. Finally, it is the opinion of the researcher that the management of the Money-Deposit Banks should prevent the incidence of bad debts in Nigerian Banks.

Table of Content

Title Page i Approval Page ii Certification iii Dedication iv Acknowledgement v Abstract vi

Table of Contents



vii

CHAPTER ONE: INTRODUCTION

1.1 Background of the study 1

1.2 Statement of the problems 2

1.3 Purpose̸ Objective of the study 3

1.4 Research Questions 4

1.5 Research Hypothesis 5

1.6 Significant of the study 6

1.7 Scope of the study 7

1.8 Limitations of the Study 8

1.9 Definition of terms 9

CHAPTER TWO: LITERATURE REVIEW

2.1 Theoretical Framework 9

2.2 Government control over credits 23

2.3 Credit Administration in Union bank of Nigeria plc 26

2.4 Lending and Credit Analysis 29

CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY 3.1 Research Methodology 36

3.2 Research Design 36 3.3 Area of Study 36

3.4 Population for the Study 36

3.5 Sample Size Used 36

3.6 Instrument For Data Collection 38rn 3.7 Validation of the instrument 39

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1 Data presentation and summary of findings 41

4.2 Provision and Analysis of Data Question 46 4.3 Test of Hypothesis 51 CHAPTER FIVE: SUMMARY OF FINDINGS,

RECOMMENDATIONS,CONCLUSION.

5.1 Summary of Findings 59

5.2 Recommendations 60

5.3 Conclusion 62

Appendix 64

Bibliography

Introduction

It is an accepted fact in Economic discourse that intermediaries such as Banks and Non-Bank financial institutions exist to ensure the transfer of financial surplus units to financial deficit units in any economy. Financial intermediaries make these funds available to deficit units or more broadly borrowers. In the process of inter-mediation, the financial intermediaries incur costs and even losses. Hence the need to sustain investor confidence in the system through the provision of adequate controls.



The need for an effective and efficient system of debt administration, control and recovery is today of central importance to institutional lend-ers. We have come a long way from the days of easy and cheap money supply of the 1970's. People will recall the halcyon era of the Udoji awards and oil boom when absorptive capacity was low and economic activity was essentially cash and carry. That was the era of "arm chair" banking.



Not so in the Shagari era of the early 1980's when the bubble burst and economic stabilization measures were introduced. Money became tight and defaults in loan obligations started. Today institutional lenders are groaning under the weight of massive volumes of non-performing assets. Total bank credit to the domestic economy rose by 83.5% from 18.47 billion in December 1989 to 33.0 billion in September 1990.



Outstanding non-performing loans stood at about 7.6 billion in 1990. Up until mid-1989, it was still relatively easy to source funds in the desired volumes but tight monetary policy has since changed all that. The introduction of the prudential guidelines on loan loss provisions and the big bang of March 5, 1992 when the Naira went into free fall has put pressure on the cost of funds and reduced lending. There has been a lot of talk about bank defaults and the time has certainly arrived for these institutional lenders to take a fresh look at debt management.