Credit Management and the Incidence Of Bad Debt in Nigeria Money-Deposit Banks.(A Case Study of Union Bank of Nigeria Plc)

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 CONTENTS

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                                                                38

      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                                                                                                            66