EVALUATION OF COMMERCIAL BANK'S CREDIT POLICY: A CASE STUDY OF UNITED BANK FOR AFRICA PLC

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Date
1998
Authors
SANI, ABUBAKAR
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Abstract
Credit policy is a sound and fulfilling monitor document that guides lending and its eventual recovery, thereby safeguarding banks against deteriorating into distress outfits. While some of these banks have collapsed due to defective credit policy, those presently surviving are forging ahead with reviragorated and reviewed credit policies that suits events of the times. In UBA Plc. which has been chosen for our case study the credit policy has just undergone dynamic but reflective change, to protect and manage lending generally. The objective however, is to provide better up-front financial and industry analysis and the consideration of the risks involved in our lending decisions. To adequately achieve a purposeful research edifice we used interview and questionnaire method in our research methodology to discretely evaluate Credit Policy of many banks and in particular the case of UBA. The response was high and interesting. However it simply seeks to provide disciplined approach to credit evaluation by offering discrimination right from credit origination stage thereby weeding out weak proposals. The essence at the end of the day is to ensure quality and recoverable credits. Nevertheless, the professional touch to the credit policy equally allows us to identify possible problem areas such as ratings through deliberate and realistic discriminant analysis. To this end, there is the need for flexibility, decentralization and periodic review of the credit policy to reflect realities of the industry and the economy. The enormous positive implications desirable to UBA balance sheet and profit statement will no doubt result in positive multiplier effect on the economy. Finally, the study is intended to aid Bank Analysts in particular and the industry in general.
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BEING A PROJECT SUBMITTED TO THE POSTGRADUATE SCHOOL IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION, FACULTY OF ADMINISTRATION, AHMADU BELLO UNIVERSITY, ZARIA. DEPARTMENT OF BUSINESS ADMINISTRATION, FACULTY OF ADMINISTRATION, AHMADU BELLO UNIVERSITY, ZARIA.
Keywords
EVALUATION,, COMMERCIAL,, BANKS,, CREDIT POLICY,, UNITED,, BANKS,, AFRICA
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