Credit management in nigeria banks

July 30, by articles Leave a Comment Credit Management in Nigerian Banks Credit Management in Nigerian Banks — The primary function of commercials bank is the extensions of credit to borrows in making credit available banks render great service not only to borrower out also to the economy in general. Through their actions production is increased capital investment are expanded, implements opportunities generated and a higher standard of living is realized.

Credit management in nigeria banks

Credit management in nigeria banks are ignorant of the fact that bank like other commercial ventures, are out to make profit by selling their products loan instead, they understood it to be a place where government and other well-to-do people store their money.

On the part of our elite in white, they regard money borrowed as part of their gratuity which should not be paid. Some customers because of inadequate preparation or technicalities inherent in the purpose, for which the loan is taken, do not properly assess their loan requirements and as a result, loans approved fall short of actual needs.

Consequently, the customer cannot operate on a level profitable enough to enable repayment occasioning at time in bad debt on a serious note. Some customers or borrowers over-invest the loans approved on infrastrures to the detriment of actual purpose.

This concerns efficient disbursement and amortization schedule by banks. The pre-requisite for giving out loan to the customer is the consideration of the following: The likelihood that a customer will try to honour his obligation.

The general position of the customer. Assets that customers may offer as security to obtain credit in case of bad debt. This affects the loans resulting to bad debts. Natural hazards include something like fire engulfing the factory where the loan is invented, in the case of agriculture, poor rainfall and pest may cause low harvest which will not give the farmer enough to repay the debt.

For these purpose the research shall appraise lending procedure and loan management of Union bank. Impact on general or specific economic trend. High interest chargeable by banks sometime occasioned a situation of bad debts because the interest increases the amount to be paid.

Absence of forum by banks for enlightenment education of customers resulting to lack of procedure on report judgment for joint solution.

Credit Management And Bank Lending : (A Case Study Of Hallmark Bank Ltd In Nigerian)

Poor supervision of loan extended: Therefore loan given should be traced to the extent of seeing where it is invested by the bank.

Late and inconvenient disbursement on loans by banks either because of the risk factor inherent or due to inadequate staff or other bureaucratic and administrative delay. Convenient amortization schedule also contribute in credit management policy of the bank. The researcher shall proffer suggestions on his findings.

The work is divided into five chapters. Both loan complication and risk of loss are hardly divorced from the lending operations. Proportion of the total loans and advances made by the banker would usually become sticky.

That is why even the best managed banks provide for bad and doubtful debts in their normal course of business. The best option for a banker wishing to avoid bad debts would not lead.


However, this is not so, since interest carried on lending constitute a great proportion of banks earnings. Extraneous factors such as over trading, over- reliance on trade customers, optimistic balance sheet, misrepresentation and dishonesty of customers Instant Share On Social Media: Secondary data, Data Analysis,Abstract:: Questionnaire, Data Analysis, Abstract:: The nigeria stock excahnge denoted by NSE is a government establishment where stocks are traded on a daill These small scale enterprises cannot function properly if they are not But the most accepted definitions are that of J.

E Banister and P. Keep up ur integrity and transparency". U said "i applauded project clue for their excellent performance for satisfying student from various Universties on project work. Ibrahim from BUK said "very nice".This lead to the topic credit management in Nigeria commercial bank; this research work will contain chapters from one to five, in chapter at this project, the aim will be the introduction part of credit management in Nigeria commercial timberdesignmag.coms: 7.

Credit management in nigeria banks

Credit Management And Bank Lending: (A Case Study Of Hallmark Bank Ltd In Nigerian) REVIEW OF THE RELATED LITERATURE According to Adekanye, (, P – 14), the history of commercial banking in Nigerian can be trace more adequately to he 19th century.

Credit Management is one the most difficult task facing bankers all of over the world and the case is more pronounced in the Nigeria situation because going through the history of banking in Nigeria, one can observed that the major source of bank failures was ineffective credit management that led to accumulation of bad debts.

Credit management and issues of bad debts in commercial banks in Nigeria has been a topic of constant debate among economists and policy makers.


The need and criteria for lending have been extensively discussed in the literature review. Credit Risk Management In Commercial Banks DOI: / 52 | Page II.

Literature Review The deregulation of the financial system in Nigeria embarked upon from allowed . This lead to the topic credit management in Nigeria commercial bank; this research work will contain chapters from one to five, in chapter at this project, the aim will be the introduction part of credit management in Nigeria commercial banks.