MANAGEMENT OF DEBT AS A SURVIVAL STRATEGY FOR COMMERCIAL BANKS IN NIGERIA
MANAGEMENT OF DEBT AS A SURVIVAL STRATEGY FOR COMMERCIAL BANKS IN NIGERIA
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Date
2005-09
Authors
ADAMU, Abdu
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Abstract
The Nigerian banking crises of the 1980s occurred almost in quick
recession. They come as a result of government policy to liberalize the
industry in 1988 as an integral part of an overall economic reform policy
framework adopted in 1986. Liberalization of the industry encompassed
deregulation of the interest and exchange rates and the issue of banking
lience to indigences to establish banks, our analysis has revealed that for
a banking project to be licensed and established, it would have to passed
all the profitability and viability tests, which further revealed that debt
default and low equity – deposit base, constitute the major risk elements.
This project is concerned with the causes of bad debts in commercial banks
using Oceanic Bank Plc as a case study. Effects of factors such as economic
recession, non-prudent financial management, prevailing economic situations
on debts management were considered. The study population was made up
to 50 officers from the credit department of the bank from ten branch offices.
The instrument used for data collection was the questionnaire. It was
discovered that factors such as, economic recession, Government monetary
policy, excess gearing, under capitalization etc. could cause bad debt in
commercial banks in Nigeria, it was also observed that the state of the
economy, staff qualifications, prudent financial management and
establishment of effective loan policy does have significant effect on the
extent of bad debts.
Finally, it was fund that management of debt in commercial banks can aid the
management of banks to make a sound decision in their day to day activities.
Description
BEING A PROJECT SUBMITTED TO THE POST-GRADUATE SCHOOL IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF
MATER OF BUSINESS ADMINISTRATION (MBA) OF AHMADU BELLO UNIVERSITY,
ZARIA.
DEPARTMENT OF BUSINESS ADMINISTRATION,
FACULTY OF ADMINISTRATION
AHMADU BELLO UNIVERSITY
ZARIA
SEPTEMBER, 2005
Keywords
MANAGEMENT,, DEBT,, SURVIVAL,, STRATEGY,, COMMERCIAL,, BANKS,, NIGERIA