CREDIT MANAGEMENT POLICY OF COMMERCIAL BANKS IN NIGERIA: A CASE STUDY OF HABIB NIGERIA BANK LTD
CREDIT MANAGEMENT POLICY OF COMMERCIAL BANKS IN NIGERIA: A CASE STUDY OF HABIB NIGERIA BANK LTD
No Thumbnail Available
Date
2000-08
Authors
KURAH, GABRIEL GOYI
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
This research is on credit management policy of Nigeria commercial banks. Credit
which forms the greatest portion of commercial Banks' assets need to be properly
managed to ensure the continous survival of the industry.
As a positive step towards sustaining the industry, there has to be in place well
articulate policies regarding credits that should guarantee their viability.
It would be recalled that in the late 80's and early 90's the banking industry
experience a boom in business, but shortly after experienced a period of recession
and outright failure that led to the closure of some Banks in the country. The
general cause of the early 90s massive banks failure was attributable to poor lending
policies.
It was for this reason that this study was conducted to verify the how genue this
claim is and see possibility of suggesting improved lending policies to enable
achieving viability for the industry as a whole and the economy.
However, after conducting the study, it was discovered that,
Most banks have good credit policies on ground, but the actual problem lies
with the issue of management.
Frequent changes in government economic policies tends to have cyclical
effect on the management of Bank credits.
It was on the basis of this that the following recommendations were made:a.
Credit managers need to be adequately trained.
b. There is need for a comprehensive insurance policy to cover the total credits
and minimise risk.
c. Interest rate policy should be such that, they are attainable to willing and able
borrowers to minimise risk of default
d. Granting of interest discount/waiver should be encouraged.
e. Changes in economic policies should be in line with the need of the financial
institutions.
f. Credit planning should become an integral part of banking and national
planning. The economic plan must have a counterpart of the credit plan
worked out by the CBN in co-operation with the bankers' committee.
Description
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF MASTER DEGREE IN BUSINESS
ADMINISTRATION (MBA)
DEPARTMENT OF BUSINESS ADMINISTRATION
AHMADU BELLO UNIVERSITY
KONGO-ZARIA
AUGUST, 2000
Keywords
CREDIT,, MANAGEMENT,, POLICY,, COMMERCIAL,, BANKS,, NIGERIA, CASE,, STUDY,, HABIB,, NIGERIA, LTD,