Emperical Analysis Of Credit Management and the Incident of Bad Debt in Nigeria Deposit Bank (A Case Study of Union Bank of Nigeria)

TABLE OF CONTENT

Title page                                                                                                                      i

Certification                                                                                                                 ii

Dedication                                                                                                                    iii

 Acknowledgement                                                                                                        iv

Table of content                                                                                                            vi

CHAPTER ONE

1.0         Introduction

1.1         Statement of the research problem

1.2         Objectives of the study

1.3         Statement of the study

1.4         Significance of the study

1.5         Definition of terms

1.6         Plan of the study

CHAPTER TWO

2.0         Literature review

CHAPTER THREE

3.0         Research methodology

3.1         Historical background of the case study

3.2         Source of data

3.3         Population of the study

3.4         Method of data analysis

3.5         Limitation to methodology

CHAPTER FOUR

4.0         Data presentation analysis and interpretation of results

4.1         Data presentation

4.2         Data analysis

4.3         Interpretation of results

CHAPTER FIVE

5.0         Summary Conclusion and Recommendations.

5.1         Summary

5.2         Conclusion

5.3         Recommendation

Reference

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

In a modern economy, there is distinction between the surplus economic units and the deficit economic units and in consequence a separation of the savings investment mechanism. This has necessitated the existence of financial institution whose job includes the transfer of found from savers to investors. One of such institution is the money deposit banks, the intermediating roles of the money deposit bank place them in a position of trustees of the saving of the widely depressed surplus economy units as well as the determinant of the rate and shade of the economic development .the techniques employed by banker in the intermediary function should provide them with perfect knowledge of the out-come of lending such that funds will be allocated to investments in which the probability of full payment is certain. However, in practice no such tools can be found in the decision of the lending banker.  Virtually all lending decision are made under creditors on uncertainty associated with lending decision, situation are so great that the concept of risk and risk analysis needs to be employed by lending bankers in order to facilitate sound decision making and judgment. This statement implies that if risk are to be objective assessed, lending delicious by the money deposit bank should be base less on quantitative data and more on principle too subjective to proved sound and unbiased judgment. Furthermore the bank depends heavily on historical information as a basis for decision making.

Apparently aware of the inadequacies of his decision base the lending banker has often sought solace in tangible and marketable assets as security giving the impression that lending against such security is an insurance against bad debt. This makes the bankers complacent his loan portfolio. The increasing trend of provision for bad and doubtful debt in most money deposit banks is a major source of concern not only to management but also to the shareholder are becoming more aware of the dangers posed by these debts. Bad depts. destroy of the earning asset of bank such as loan and advance which have been described as the main source of earning and also determines the liquidity and solvency which generate two major problems that profitability and liquidity, has to earn sufficient income to meet its operating cost and to have adequate return on its investment.