Problem And Solution Of Bank Lending In Commercial Banks (A Study Of First Bank Nigeria Plc Ughelli)

ABSTRACT

It is well known phenomenon that some business men that have sound business acumen and entrepreneurial ability do not have the financial resources to carry on their business activities and one avenue open to them for such financial assistance is commercial banks. It is for such persons this work is meant to serve their interest and to brighten their preparedness and responsibility to a request of loan. In an attempt to appraise the difficulties that are faced by the businessmen and commercial banks in borrowing and lending of funds for the business activities, this work have been divided into five chapters. The work contains the various problems encountered by the businessmen in obtaining loans and also the various ways or methods the bank would consider before granting of such loans to customers. It is also dealt with the review of the various theories in lending conditions and policies set by Central Bank of Nigeria (C.B.N) in its monetary policies of commercial Banks. The criteria for lending by commercial banks are problem of effective lending services and finally the incidence of bad debts in bank lending. The work also examined procedure adopted in obtaining information and data and the limitation of methodology. Questionnaire and interview analysis were also carried out in which the final analyses were recorded. The study is based on the premise of finding out the necessary conditions with questionnaire and personal interview conducted on the lending activities of the banks, it was discovered that sufficient credit facilities which would as well stimulate business and entrepreneur skills are not being enjoyed by the bank customers. It was also discovered the purpose for which they are meant for. Recommendations are also made which might help to alleviate whatever problems that is there in the lending process. These recommendation were made in an attempt to minimize or totally erase the problems highlighted in the study during the whole process of lending. It is hoped that the result of the study will stimulate interest not only among business men, lending officers, researchers and student of financial management but also among policy makers in the banking industry.

TABLE OF CONTENTS

TITLEPAGE -            -           -           -           -           -           -           -           -           i

CERTIFICATION      -           -           -           -           -           -           -           -           ii

DEDICATION -         -           -           -           -           -           -           -           -           iii

ACKNOWLEDGEMENT     -           -           -           -           -           -           -           iv

ABSTRACT -             -           -           -           -           -           -           -           -           vi

TABLE OF     CONTENT     -           -           -           -           -           -           -           ix

CHAPTER ONE

1.0       INTRODUCTION- -  -           -           -           -           -           -           -           1

1.1       Background of Study-         -           -           -           -           -           -           1

1.2       Statement of Research Problem   -           -           -           -           -           2

1.3       Objective of the Study -       -           -           -           -           -           -           3

1.4       Scope of Study - -    -           -           -           -           -           -           -           4

1.5       Significance of Study          -           -           -           -           -           -           5

1.6       Research Methodology       -           -           -           -           -           -           5

1.8       Limitation of Study - -           -           -           -           -           -           -           6

1.9       Definition of Terms -            -           -           -           -           -           -           7

CHAPTER TWO

2.0       LITERATURE REVIEW -                -           -           -           -           -           11       

2.1      Preamble -    -           -          -           -           -           -           -           -           11

2.2      Historical Development of Commercial Bank in Nigeria -         -           11       

2.3       Origin of Bank Lending       -           -           -           -           -           -           12

2.4.     General Lending Policies by Central Bank of Nigeria    -           -           12

2.5      Criteria for Lending by the Commercial Banks   -           -           -           14

2.6      Problems of Bank Lending in Commercial Bank-          -           -           16

CHAPTER THREE -Research Methodology

3.0       Introduction -             -           -           -           -           -           -           -           19

3.1       Data Collection Method      -           -           -           -           -           -           19

3.2       Sample and Sampling Techniques          -           -           -           -           19

3.3      Description of Data Collection Instrument-         -           -           -           20

3.4       Data Collection Instrument -           -           -           -           -           -           20

3.5       Selected Research Question         -           -           -           -           -           21

CHAPTER FOUR

4.0       Data Presentation and Analysis    -           -           -           -           -           22       

4.2       Questionnaire Analysis      -           -           -           -           -           -           22

CHAPTER FIVE

5.0       SUMMARY, CONCLUSION AND RECOMMENDATION         -           33

5.1       Summary of Findings          -           -           -           -           -           -           33

5.2       Conclusion                -           -           -           -           -           -           -           33

5.3       Recommendation    -           -           -           -           -           -           -           34

References   -           -           -           -           -           -           -           -           36

Appendix       -           -           -           -           -           -           -           -           37