AN EVALUATION OF CREDIT MANAGEMENT AND THE INCIDENT OF BAD DEBT IN NIGERIA COMMERCIAL BANK (A CASE STUDY OF UNION BANK OF NIGERIA)

ABSTRACT The purpose of this research is to examine “An Evaluation of Credit Management and The incident of bad Debt in Nigeria (A study of union bank of Nigeria).   The introduction of the prudential guideline in banking industry, the volume and value of loans and advances classified into non-performing account ahs continued to increase in bank lending.  Obviously this has adverse effect on banks since it affects their cash flow and impair profitability.  Most loans and advances go bad because of the inadequacy in credit management and recovery procedure of banks.  Appraisal of lending vis a vis the credit management of banks and the impact of the application of prudential guidelines on credit, form the major objective of this study.  Union bank of Nigeria Plc Okpara Avenue Enugu was used as a case study with a view to highlight the effectiveness, the adequacy or otherwise of the credit management policy of Nigerian commercial banks with a view to finding the causes and consequences of non-performing loans and advances.  The causes are excessive lending on security values and bad management of borrowers.  Having analysed the data, the following findings were made, the principal objective of bank lending is to generate revenue, the loan deposit ratio affects the liquidity position of commercial banks, non- performing account kept on increasing the frequent occurrence of non- performing accounts was discovered to be as result of the banks inability to put in place an effective process of loan recovery, implementation of prudential guidelines by Nigerian commercial banks reflect the real income of banks.  In conclusion, the prudential guidelines reduced the profitability of commercial banks and made banks classify their loans clearly.  In the recommendation, the researcher suggested   that the provisions of the prudential guidelines should be adhered to and an effective loan monitoring unit should be set-up in al commercial banks.

TABLE OF CONTENTS Title Pagei Approval Pageii Dedicationiii Acknowledgementiv Abstractix Table of Contentsx
CHAPTER ONE:  INTRODUCTION 1.1Background of the study1 1.2Statement of the Problem5 1.3Objective of the study6 1.4Research Questions7 1.5Formulation of Hypotheses 8 1.6Significance of the Study 9 1.7Scope/ Delimitation of the Study11 1.8Definition of Terms 11
CHAPTER TWO:  REVIEW OF RELATED LITERATURE 39 References   CHAPTER THREE:  METHODOLOGY 3.1Research Design47 3.2Source of Data 49 3.3Instrument for Data Collection49 3.4Area of Study 51 3.5Population of the Study 52 3.6Sample Size Determination 52 3.7Method of Presentation of Data53 3.8Techniques of Data Analysis 54 References
CHAPTER FOUR: DATA PRESENTATION AND RESULT 4.1Data Presentation and findings 57 4.2Discussion of Findings       65 4.3Statement of Hypothesis 70 References
CHAPTER FIVE:  SUMMARY OF FINDINGS, RECOMMENDATIONS AND, CONCLUSIONS  5.1Summary    76 5.2Recommendations78 5.3Conclusion 80 Bibliography Appendix