This research aims at tracing the problems that
borrowers do encounter while obtaining loans from banks and the causes of these
The researcher trims to view these problem emanating
from the borrower method of application vis-à-vis the central bank credit
guidelines and the commercial bank principles and practice of lending.
The researcher also analysis this issue from the point
of view oft eh borrow and attempt to make this thesis more understandable by
first of all reviewing the different aspects to bank loans, different
principles and practices of lending obtainable indifferent country and finally
throwing light on the economic effects of low banking lending.
Some prospects and recommendation were also discussed
as conclusion. The research is not exhaustive but for time and financial
TABLE OF CONTENTS
1.1 Background of the study
of the study
of the study
and limitation of study
2.1 Short term loan and over draft
and long term loan
of Good Bank Lending
procedure advantages and disadvantages
of bank lending
for bank lending.
3.0 Summary and finding
1.1 BACKGROUND OF
Erasing enterprises is established
with the assumption that the objective of every management is to maximize
profit. And a very good example of the
sector is the financial institution known as the banking sector. The phenomenal growth of banks following the
introduction of SAP creates a fake impression that the banking sector is an all
The banking and financial industry if
unique in that it depends mostly on the public confidence and once the
confidence is eroded on some banks, it may spread to other banks and
institutions and this could be very dangerous to the whole system and the
economy at large.
It should also be noted as (Orji
1998) stressed that bank lending simply means credit creation and that implies
that the profit maximization of the banks is mainly realized through credit
creation, the bank authorities should abide by the rules and regulation of APEX
Bank (CBN) i.e. lending to the worst unit sector of the economy and on a
The research work will focus on the
possible reasons for bank failures. In this
regard of loan lending and loan recovery and effect of such on the rest of the
populace plus how the financial industry could be transformed to meet the
increasing challenges of the present day and finally assessing the role of the
Central Bank of Nigeria in ensuring safety of bank loan.
OBJECTIVE OF THE STUDY:
The issue of bank lending and its
recovery strategies passed as a challenge to the financial sector in particular
and the whole economy in general and as such the project work is carried out to
meet the following aims and objectives.
know if the increased administrative expenses can be eliminated by good lending
find out if default borrowers can be reprimated by serving a demand notice.
ascertain how secured the collateral securities of these loan are.
find out the extent of defaultness in the repayment of loan advances.
establish the factors responsible for loan repayment in Nigeria.
SIGNIFICANCE OF THE STUDY
The research study will bring to
light the observed reasons for commercial bank credit recovery failure and the
effect of such on the institution, this will help banks to make amendment where
necessary and help them increase their creation abilities and recover them at
the fullness of time.
SCOPE AND LIMITATIONS OF STUDY:
This research work focuses on the
commercial bank lending and loan recovery strategies due to problem associated
in the regards in the sector.
The study will reflect briefly on the
history of banking business in Nigeria, the development over the policies on
operations and mode of xx.
However, due to limitation the work
now focused on the Citizens International Bank, currently, there has not been
enough work on the loan recovery strategy in the industry. It is expected that
the move will be affected by those factors.
This financial constraints has
adversely affected this study. Also
proximity to published book on the said project topic as a difficult task to
Moreso, the data obtained is with the
scope of the domestic banking as financial system, the issue of time constrains
the project works.
Since this work needed extensive
research to come out a very constructive project and while it was done
simultaneously with other class work it has not been easy to allocate enough
time to this study.
The work though very interesting was
constrained by certain factors. It would
have been wonderful if author was opportune to have all the resources needed at
his disposal, but this was not possible due to time factors and financial
constraint on the other hand and financial problems coupled with general like
in faces as occasioned by the fuel crisis that prevailed over the period of the
study automatically limited my visitation to places where I would have sourced
DEFINITION OF TERMS:
The following are some technical
terms used in the project.
This is how a firm plans to give its
credit collection of debts owned to it by its customers.
A mixture of shares and bonds held by
is the money by which one start off a business with. In a more technical terms,
it could be referred to as the resultant between total assets and the
habitation of a firm.
The dismantling of regulation by
Central around the world. This has been another
features of xxx internationalization.
Capital adequacy, asset quality
management competence, burning strengths and inquisitively sufficiency.
(1999) defines manager as the fusing
together to two or more companies to form a company whether fusion it voluntary
is the regulatory authorities of banking in Nigeria and if otherwise known as
Central Bank of Nigeria.