Critical Analysis of the Relationship Between Credit Management and Bank Distress

Critical Analysis of the Relationship Between Credit Management and Bank Distress

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Reference ID: PS-14592-TM

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This research material titled “Critical Analysis of the Relationship Between Credit Management and Bank Distress” is dedicated to God for his enabling grace, and to all computer enthusiasts who contributed to make life a pleasant experience during my research documentation.

ACKNOWLEDGEMENT

I extend my sincere gratitude to all those who contributed to the completion of this project. Special thanks to my Supervisor (Name of your Supervisor), the Head of Department (Name of your HOD), the Lecturers in the department of Banking and Finance (BF), Book Authors and Profound Scholars of existing or related project material on “Critical Analysis of the Relationship Between Credit Management and Bank Distress” for their invaluable guidance, support, and expertise throughout the journey.

I am also grateful to your study area (mention any funding organizations, if applicable) for their financial assistance. This research would not have been possible without the encouragement and assistance of some stakeholders (mention any mentors, teachers, or colleagues). Additionally, I would like to acknowledge the understanding and patience of my family and friends during this endeavor. Your unwavering support has been a constant source of motivation. Thank you all for being part of this meaningful endeavor.

TABLE OF CONTENTS

PRELIMINARY PAGES

CHAPTER ONE

INTRODUCTION

    CHAPTER TWO

    LITERATURE REVIEW

    • 2.1 Introduction
    • 2.2 Conceptual Review
    • 2.3 Theoretical Framework
    • ⋮
    • 2.4 Empirical Studies

    CHAPTER THREE

    RESEARCH METHODOLOGY

    • 3.1 Introduction
    • 3.2 Research Design
    • 3.3 Population of Study
    • 3.4 Sampling and Sampling Technique
    • 3.5 Validation of Research Instrument
    • 3.6 Method of Data Collection
    • 3.7 Method of Data Analysis
    • 3.8 Questionnaire Administration
    • 3.9 Ethical Consideration
    • 3.10 Statistical Analysis

    CHAPTER FOUR

    DATA ANALYSIS, RESULT AND DISCUSSION

    • 4.1 Introduction
    • 4.2 Presentation and Analysis of Data
    • 4.3 Re-statement of Research Questions
    • 4.4 Test of Hypotheses
    • 4.5 Discussion of Findings

    CHAPTER FIVE

    SUMMARY, CONCLUSION AND RECOMMENDATION

    • 5.1 Introduction
    • 5.2 Summary of Findings
    • 5.3 Conclusion
    • 5.4 Recommendation
    • 5.5 Suggestion for Further Study

    REFERENCES

    APPENDIX A - “QUESTIONNAIRE”

    ABSTRACT

    Over the years, the deterioration of the quality of loans and advances in the banking sector has led to distress in the sector. The sector is at cross roads of a democratizing policy and a recovering economy. As in most resource management challenges, bank management and most especially the specialized field of risk management face significant incremental management opportunities. Due to the fact that banks are proliferating, professional manpower resources are stretching them.

    Clearly, a clear headed definition of corporate risk priorities embossed upon an appropriate credit culture rather than the short term opportunistic allure for “poisonous Profit” is the way to go.

    The government through its principal agent, the Central Bank of Nigeria controlled the quality of risk assets through the use of guidelines. The prudential guidelines which came into being in 1990 is one of such. Prior to this, credit quality classification and subsequent loan loss recognition were done haphazardly in banks. Even though prior to 1989 the CBN was solely responsible for bank general supervision, reports of loan loss classification were never for public consumption neither were banks given uniform guidelines to ensure safe and sound banking practice. This has however changed since 1989.The study seeks to take a Critical Analysis of the Relationship Between Credit Management and Bank Distress.

    The study carried out a survey of 40respondents of the bank. Research findings revealed that there exists a casual relationship between credit management and bank distress (See table 4.1(b).Although it was established that portfolio deterioration is pervasive in the Nigerian financial system and the need for continuous loan supervision and periodic portfolio reviews the study revealed that there is efficient credit management in Zenith Bank which has led to low risk exposure and insignificant debt portfolio or overhang.

    Critical Analysis of the Relationship Between Credit Management and Bank Distress

    CHAPTER ONE

    1.1 Introduction

    … As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of technical terms.

    …

    CHAPTER TWO

    2.0 Literature Review

    2.1 Introduction

    This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

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