Measures Necessary to Minimize the High Incidence of Bad Debts in Nigeria Commercial Banks

Measures Necessary to Minimize the High Incidence of Bad Debts in Nigeria Commercial Banks

Project / Seminar Material
Reference ID: PS-11476-TM

DEDICATION

This research material titled “Measures Necessary to Minimize the High Incidence of Bad Debts in Nigeria Commercial Banks” 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 “Measures Necessary to Minimize the High Incidence of Bad Debts in Nigeria Commercial Banks” 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”

    Measures Necessary to Minimize the High Incidence of Bad Debts in Nigeria Commercial Banks

    CHAPTER ONE

    Introduction

    1.1 Background Of Study

    A Bank economic purpose is to act as a financial intermediate it facilities the process of channeling savings into investments and one of the avenue of realizing this objective is by lending effectively.

    It was recommended amongst others that state owned commercial banks should be effectiveness Banks should use the services of external consultants to manager collect the debts on account classified as doubt fill and prevent the diversion of funds by some borrower, the banks should try as much as possible to deal directly with contractors or supplies of the borrowers as the case may be.

    All business regrettably experience bad debts, but bankers whose stock in trade is money view debt incidence with dread. Never the less, the occurrence of bad and doubt fill debts can be regarded as a difficult occupational associated with business. But for bank, it has for long been contended that, this dreaded and unavoidable disaster which should be kept with in reasonably margin of the total lending portfolio of the bank.

    1.2 Statement Of The Problem.

    African continental bank was closed down by central bank of Nigeria because of the incidence of bad debts resultant from inefficiency of the bank workers and dishonesty.

    Due to this high incidence of bad debt which the banks are experiencing from their customers the central bank of Nigeria set up the recapitalization of #25m to meet up with their customers incase any of the bank liquidate in order to settle or compensate those customers involved. And this is why Banks are merging themselves in order to meet the demand of the central bank of Nigeria

    This unfortunate fund in the Nigeria banking industries had debt creditors of the bank loose their more and their dividends as bad debts.

    Conflate between boards and management banks or among members of the boards and management. This caused dissipation of bank resources and the entrenchment of harmful operating practices.

    Africans continental bank was also closed down due to doubt fill debts which gave rise to fraud and other unethical practices represent the most dominate factor responsible for its distress. It can often traced to the very high incidence of bad debts and loan losses. This could be called fraud and unprofessional conduct.

    Weak internal control most operational problems are by and large symptomatic of poor quality management. The qualify of management often make the difference between success and failure in banking as in most often frauds of economic endeavour.

    Decade ago to the fact that all the net profit generated has been sunk into yawning gap of bad and doubt fill debt.

    1.3 Objectives Of The Study

    Bad debt problem has become a vital problem which the banking industry are facing because they are generally known for creating of credit loans and advantages to customers and this is one of the duties or the motive of banking.

    The minimization of high incidence of bad debt being the main aim and objectives of this work the objective for this study can then not be over emphasized if the effects of the debts on the bakery on the customer and on the society in general is appreciated.

    However the study will among other things find the causes of bad debts by finding out whether the under listed factors about the incidence of bad debt and this factors include the following:

    • Non − adherence of canons of good lending.
    • Inadequate analysis
    • Lack of supervision of loans.
    • Dishonesty of some bank officials.
    • Lending on political ground
    • Low managerial skill
    • Diversion of loan
    • Inflation
    • Recession.

    The relevance of this study is under score in its desire to asset bank confirm the multifarious causes of bad debts in their operation and help alert and knows his customers project proposal and account operation thoroughly the unbendable nature of his proposed or the flagging position of his account could be easily spotted.

    …

    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 …

    Summary Headlines for Measures Necessary to Minimize the High Incidence of Bad Debts in Nigeria Commercial Banks