Management of Bad Debt in the Nigeria Banking System Scopes and Remedies

Management of Bad Debt in the Nigeria Banking System Scopes and Remedies

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Reference ID: PS-11678-TM

DEDICATION

This research material titled “Management of Bad Debt in the Nigeria Banking System Scopes and Remedies” 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 “Management of Bad Debt in the Nigeria Banking System Scopes and Remedies” 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

    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.

    Management of Bad Debt in the Nigeria Banking System Scopes and Remedies

    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 themselves of the opportunity of enjoying such facilities among other consequences.

    1.3 Objectives Of The Study

    The project work therefore is aimed at evaluating the following points:

    1. To evaluate the problem of bad debts in banking lending
    2. To identifying its remote and immediate causes.
    3. To determine its effects to the economy in general.
    4. To make recommendation on how possible.

    1.4 Definition Of Terms:

    1. Bank:

    Otherwise specially stated bank in this study refer to commercial banks. Commercial bank is described by the banking act, 19689 as a bank whose business include the acceptance of deposit, withdrawal by cheque include loans and advances.

    2. Capital:

    This is the amount used for the commencement of business with addition subsequently made. It is also a set aside wealth for the production of more wealth.

    3. Loan Credit Risk:

    This is the profitability that a borrower may not repay the loan granted him by the bank.

    4. Money Rate:

    This entails the possibility of value of money increasing or decreasing.

    5. Market Rate:

    The probability of the interest rate change.

    …

    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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