CREDIT MANAGEMENT IN THE BANKING INDUSTRY: A CASE STUDY OF NIGERIAN AGRICULTURAL AND COOPERATIVE BANK AND FIRST BANK OF NIGERIA PLC
CREDIT MANAGEMENT IN THE BANKING INDUSTRY: A CASE STUDY OF NIGERIAN AGRICULTURAL AND COOPERATIVE BANK AND FIRST BANK OF NIGERIA PLC
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Date
1999-11
Authors
JIMADA, MUSTAPHA AISHAT MAMMA
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Abstract
The dilemma facing the Nigerian banking industry as a result of high
incidence of loan (credit) default by corporate and individual customers
alike is multifarious and has now attained an alarming proportion. As a
result of this, some banks have recently categorized more than 45% of their
loan (credit) portfolio as non-performing or critical assets. This decision
has been blamed on the various government policies, especially those of
the 1980s and 1990s, typically called the Structural Adjustment
Programme (SAP). This period was characterized by fall in oil revenue and
the resultant balance of payments crisis.
Government needed to take steps to arrest the situation because of
the danger it posed on the Nigerian economy in general and the financial
sector, in particular. It resulted in corporate insolvency and therefore dealt
a permanent damage to the economic survival of the country as a whole.
This has necessitated our suggestion that there is need for an efficient and
effective credit (loan) management for Nigeria's banking industry.
This is based on comparative analysis of credit management in the
Nigerian Agricultural and Cooperative Bank Limited, a development bank
and First Bank of Nigeria Plc, a commercial bank. In chapter one, the
genealogy of credit management has been looked into in the two banks,
while in chapter two, related literatures were reviewed in relation to the
topic, i.e. credit management and management concepts. Chapter 3 and
four conducted an in-depth study of the credit management strategies of the
two banks, and how the banks dealt with the problems that arose therefrom.
Lastly, in chapter five, summary, recommendation and conclusion were
drawn from the above analyses.
Our conclusion from our analysis is that for our banks to survive and
be firmly rooted, emphasis must be placed on good management of credit
portfolio.
Description
A project submitted to the Postgraduate School, Ahmadu Bello University
Zaria
In partial fulfillment of the requirements for the award of Master Degree In
Business Administration (MBA)
Department of Business Administration
Ahmadu Bello University, Zaria
November, 1999
Keywords
CREDIT,, MANAGEMENT,, BANKING,, INDUSTRY,, CASE,, STUDY,, NIGERIAN,, AGRICULTURAL,, COOPERATIVE,, BANK,, FIRST,, PLC,