CAUSE OF BAD DEBT IN COMMUNITY BANK

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INTRODUCTION

In a modern economy, there is distinction between the surplus economic units and the deficit economic units and in consequences, a separation of the saving investment mechanism. This has necessitated the existence of financial institutions whose job includes the transfer of funds from saver to investors. One of such institution is community bank. The intermediating roles of the community bank place them in a position of “trustees” of the savings of the widely dispersed supplies economic units as well as the determinant of the rate and shape of economic development. The techniques employed by banks in this intermediately function should proved them with perfect knowledge of the outcome of lending such that funds will be allocated to investments in which the provability of full repayment in almost certain.

TABLE OF CONTENT

TITLE PAGE i

APPROVAL PAGE ii

DEDICATION iii

ACKNOWLEDGEMENT iv

TABLE OF CONTENT v

CHAPTER ONE

1.0 Introduction

1.1 Background of the study

1.2 Statement of problems

1.3 Purpose of the study

1.4 Significance of the study

1.5 Scope of the study

1.6 Definition of terms

CHAPTER TWO

2.0 Literature review

2.1 Factors that can cause bad and doubtful debt

2.2 Government control over credit

2.3 Credit administration in community banks

CHAPTER THREE

3.0 Summary

3.1 Conclusion

3.2 Recommendation

BIBLIOGRAPHY

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CAUSE OF BAD DEBT IN COMMUNITY BANK

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