Bank have been credited generally with enviable role of being a very important source of funds or capital for the development of the economy.
This recognition largely emanates from the roles assumed by most banking institute in mobilizing various deposits and channeling some towards feasible and viable ventures. This size tyre and level of such profitable outlet along with other complimentary factors contribute to economy well being of the country in which the bank is situated. As a result of this banking institutes have been an agent of economic growth and perhaps economic development.
This deposit which are loanable funds can only be made available to the banks if customer make substantial deposit which banks in turn employ to make loan and advance interest which may accrue from the advances.
This enable the bank to run its day to day administrative cost, remain in business and pay satisfactory dividend to its shareholders.
1.6STATEMENT OF PROBLEMS:
It is unfortunate that the borrowers take undue advantage of these loan and advances granted to them by not utilizing them for the purpose for which were given hence bringing about default in the repayment of such loans and subsequent of loan and make it extremely difficult for other intending borrowers or fund seekers to avail themselves of the opportunity of enjoying such facilities among other consequences.
1.7OBLECTIVE OF THE STUDY
The project work therefore is aimed at evaluating the following points.
a)To evaluate the problem of bad debts in banking lending.
b)To identifying its remote and immediate causes.
c)To determine its effects to the economy in general.
d)To make recommendation on how possible
TABLE OF CONTENTS
Table of contents
1.1Background of the study
1.2Statement of problems:
1.3Objective of the study
1.4Delimitation, scope and limitation of the project.
1.5Definition of terms:
Review of related literature
2.1Security for bank lending:
2.2Causes of bad debts:
3.1Source of data:
3.2Method of data:
4.2 Securities acceptable for bank lending
Recommendation and conclusion
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