MANAGEMENT OF BAD DEBT IN THE NIGERIA BANKING SYSTEM SCOPES AND REMEDIES.

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MANAGEMENT OF BAD DEBT IN THE NIGERIA

BANKING SYSTEM SCOPES AND REMEDIES.

ABSTRACT

 

This study is all about the management of bank debt in Nigeria banking system, scopes and remedies.

It is designed to evaluate the problem of bad debt in banking lending. It is also assets how effective the customers could help the banker to appraise a customer presenting lending proposition.

Findings from this study indicate that bad debt has being a tax brother to the banking industries. Bank can stand squarely without giving loan to the customer because they receive back some                                                                                                                                                      percentage of interest accrue former the principle.

But due to lack of sincerity people cannot pay back their loans. This leaving those loans outstanding. The implication for both the bank and their customers as regards ability to debt obligation is quite obvious.

It is when a banker is satisfied with the credibility of the customer that they will demand for a security to back up the loan. This is the center of the project.

 

TABLE OF CONTENT

 

Title page                                                                       i

Approval page                                                               ii

Dedication                                                                      iii

Acknowledgment                                                           iv

Abstract                                                                         v

Table of content                                                             vi

 

CHAPTER ONE

1.0  Introduction

1.1 background of the study

1.2 statement of problem

1.3 objective of the study

1.4 delimitation scope and limitation of the problem

1.5 definition of terms

Reference

 

CHAPTER TWO

2.0 review of related literature

2.1 credit management

2.2 securities for bank lending

2.3 causes of bad debts

reference

 

CHAPTER THREE

3.0 research design of methodology

3.1 sources of data

3.2 method of data

reference

 

CHAPTER FOUR

4.0 data presentation

reference

 

 

CHAPTER FIVE

5.0 conclusions and recommendation

5.1 summary

5.2 recommendation

5.3 conclusions

bibliography

 

CHAPTER ONE

 

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Banks 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 institutions in mobilizing various deposits and channeling some towards feasible and viable ventures. This size, type 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 institutions have been an agent of economic growth and perhaps economic development.

This deposit which are loanable funds can only be made available to banks, if customer make substantial deposit which banks in turn employ to make loan and advance available to borrower so as to generate interest which may accrue from the advances.

This enables the bank to run its day-to-day administrative cost, remain in business and pay satisfactory divided to its shareholders.

 

1.2 STATEMENT 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 bad debts.

So, bad debt can be defined as unrecoverable debts. The borrower consistent inconsistency in response to demand for the repayment of loan and make it extremely difficult for other intending borrowers or fund seeker to avail

 


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