CREDIT MANAGEMENT IN THE BANKING SECTOR: A CASE STUDY OF FIRST BANK OF NIGERIA

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Date
1997-11
Authors
Yusuf, Sa'adatu Inna
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Abstract
One of the basic functions of banks is taking of deposits and lending but when customers fail to meet their obligations, major problems such as bad debts arises, thus it is important for a bank to establish a well defined credit policy and a well proven method of recovering debts. This project work entails the ways in which credits are being managed in the commercial banks with special reference to first bank of Nigeria P.L.C and concentrates on the administration of lending before and after the credit up to the final stage with much emphasis on the causes, effects and possible remedies of bad debts with efforts taken to alleviate the recurrent trend. The general assumptions adopted in this work are that banks grant credit to deserving customers with a high expectation that such credits will be repaid plus the required interest and that banks are governed by the same credit guidelines issued by the central bank in addition to their respective interest generated. The study is limited to facilities granted between 1 to 5 years. On the whole, the prevailing economic difficulties in the country calls for skillful credit management and prudence on the part of the bank, thus the conclusions therefore reached from the research findings are directed towards finding workable strategies or methods that will assist in reducing the level of bad debts and adverse effects on the banks profit.
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A PROJECT SUBMITTED TO THE POSTGRADUATE SCHOOL AHMADU BELLO UNIVERSITY ZARIA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER IN BUSINESS ADMINISTRATION (MBA) Department of Business Administration Ahmadu Bello University Zaria NOVEMBER, 1997
Keywords
CREDIT,, MANAGEMENT,, BANKING,, SECTOR,, CASE,, STUDY,, FIRST,, BANK,, NIGERIA
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