Management of Bad Debts in Commercial Bank (A Case Study of First Bank of Nigeria Plc, Ibadan Challenge Branch)

ABSTRACT

This project studied the management of bad and doubtful debts by Nigeria commercial banks. It noted problems associated with the wide spread development of bad account by banks as being occasioned by so many changes that are unfolding as a result of the deregulation of the Nigerian Financial System. It viewed the incidences of bad debts as one of the greatest problems facing both old and new generations of banks today with adverse consequences on their profitability level. This project traced the origin of bad accounts to a number of factors some which may be internal, external or by act of God. e.g. the death of the owner of business. It was help that an account becomes bad the very day the facility is granted. Carelessness on the part of lending officers and his inability to interpret and respond promptly to warning signals may cause an untold loss in addition collusion by lending officers with the borrowers and absence a clearly defined lending guideless by banks may be responsible for high loan default. It is even difficult to identify control once a facility has been agreed by management.

The most effective way of limiting one’s losses however is to stop paying out but trading margins are particularly important.  

 

TABLE OF CONTENT

TITLE PAGE                                                                                                   

CERTIFICATION                                                                                            

DECLARATION                                                                                             

DEDICATION                                                                                                 

ACKNOWLEDGEMENT                                                                                 

ABSTRACT                                                                                                    

TABLE OF CONTENTS

CHAPTER ONE

1.0       Introduction                                                                                        

1.1       Background of the Study                                                                      

1.2       problems of the Study                                                                          

1.3       Objective of the Study                                                                          

1.4       Significance of the Study                                                                      

1.5       Research of the Study                                                                          

1.6       Plan of the Study                                                                                 

CHAPTER TWO       

2.0       Literature Review                                                                                 

2.1       Meaning of Bad Debt                                                                           

2.2       Management Of Bad Debt                                                                    

2.3       Effects of Bad and Doubtfully Debts                                         

2.4       Risk Analysis                                                                           

CHAPTER THREE    

3.0       Research Methodology                                                             

3.1       Historical Background of First Bank                                         

3.2       Sample and Population of the Study                                          

3.3       Population                                                                               

3.4       Method of Data Analysis                                                          

3.5       Validity of Instrument                                                              

3.6       Administration of Instrument                                                   

3.7       Observed Problem                                                                    

3.8       Limitation of the Study                                                            

CHAPTER FOUR

4.0       Data Presentation and Analysis                                                 

4.1       Data Presentation                                                                     

4.2       Data Analysis                                                                          

4.3       Test of Hypothesis                                                                   

4.4       Findings

CHAPTER FIVE

5.0       Summary, Conclusion and Recommendations               

5.1       Summary                                            

5.2       Conclusion                                          

5.3       Recommendation for Improved Management of Bad Loan                                              

REFERENCES