BACKGROUND
OF THE STUDY
Credit in deeper perspective conates different definitions
depending on angle on which it is being viewed. In an accountant, credit means
financial benefit and also put in another way, having a corresponding
relationship on a dual entry principles. To a banker it means financial
accommodation, a type of financial facility, packaged, for the benefit of the
deficit economic unit. In essence, it involves an allocation of finds. For
example, chamber Dictionary define credit as sum placed at one’s disposal in
the books of bank. This definition crystallizes the concept that when an account
is in surplus position it liberty? Up to the limit of his funds. Therefore,
when an arrangement is made between the bank and the borrower overdraws his
balance, a form of bank credit has been allowed in which case, there is an
obligation to repay such debt at a future date.
Relating this to Bank, credit means that Bank
frequently uses part of its deposit in granting credit to his customers thereby
affecting confidence in the integrity at customers (borrower) is to whom such
loan and advances are made either by way of discounting bills or otherwise, to
increase the borrower to increase in borrower purchasing power.
Credit is, therefore created by way of loans and
advances or by discounting of bills and engaging in other investment securities
normally oblige to the borrowers.
Financial institution ensures that there is enough
stock of money to service the needs and aspiration of the economy. It also
performs economic as of transferring money from areas of surplus economic units
to deficit economic sector.
Credit management is regarded as a vital instrument
in the management of banking industry especially as it affects the commercial
banking system. Attention in this work would be focused on this area of
endeavour. More so as to be one of the most neglected areas of management in
most countries today (especially in the developing and underdeveloped nations
of the world including Nigeria) it could therefore be said that the inherent
problem as experience by banking sector today can be linked to the partial or
total neglect of cannons of lending, by the officers of the bank, impact of government
policy and customers attitude towards the entire spectrum of credit facilities.
Anonymous, U (2020). The Impact of Bank Credit on the Nigeria Economy. Afribary.com: Retrieved March 07, 2021, from https://afribary.com/works/the-impact-of-bank-credit-on-the-nigeria-economy
User, Anonymous. "The Impact of Bank Credit on the Nigeria Economy" Afribary.com. Afribary.com, 10 Sep. 2020, https://afribary.com/works/the-impact-of-bank-credit-on-the-nigeria-economy . Accessed 07 Mar. 2021.
User, Anonymous. "The Impact of Bank Credit on the Nigeria Economy". Afribary.com, Afribary.com, 10 Sep. 2020. Web. 07 Mar. 2021. < https://afribary.com/works/the-impact-of-bank-credit-on-the-nigeria-economy >.
User, Anonymous. "The Impact of Bank Credit on the Nigeria Economy" Afribary.com (2020). Accessed March 07, 2021. https://afribary.com/works/the-impact-of-bank-credit-on-the-nigeria-economy