RATIO ANALYSIS AS A BANK LENDING TOOL (A CASE STUDY OF UNION BANK OF NIGERIA, OGUI ROAD, ENUGU) (#3634)

ABSTRACT This study seeks to study the bank lending functions in Nigerian banks, with a view to ironing out the factors militating against the attainment of sound lending which contribute in no small measure to the non-recovery of loans.  Investigating the extent to which ratio analysis assist bank managers in their decision in lending.  Bank lending is merely the assessment and evaluation of bankable proposition with the objective of extending credit facilities on terms and conditions acceptable to both lender and borrower.  The rationale behind bank lending is presumably the desire to attain social and economic objectives for the society and profit for the banks. Over the years, there has been a transition from an era of paper profits to an era of losses.  In fact, many banks no longer lend delinquent debtors to honour their obligations.  All these and many more are discussed in this project because one of the most important tasks of ratio analysis is assisting the financial managers to achieve efficiency through the provision of suitable financial information. In carrying out the above mentioned functions, research questions were used in analysis formulated.  Relevant tables were built on the data collected and percentages were used in analysizing the data.  The hypothesis which states that “RATIO ANALYSIS does not help financial managers or does not serve as a lending too” was tested from the responses and found to be wrong.  Based on the findings, some recommendations were put forward which, if adopted will go a long way in enhancing the effectiveness and reliability of using ratio analysis in evaluating the financial performance of a given institution in a given period before lending.
TABLE OF CONTENTSTitle pageApproval pageDedicationAcknowledgementTable of ContentsAbstract PrefaceProposal
CHAPTER ONE:1.0Introduction1.1Background of the study1.2Statement of problems1.3Objectives of the study1.4Significance of the study1.5Scope and limitations of study1.6Hypothesis of the study1.7Brief history of the Union Bank of Nig. Plc1.8Definition of Terms
CHAPTER TWO:2.0Literature Review2.1Concepts of Bank lending2.2Objectives of Bank lending2.3Basic principles of lending2.4Constraints/Problems of lending2.5Purposes of Ratio Analysis2.6Profile of Union Bank2.7Objectives/Functions of Union Bank2.8Achievements/Challenges
CHAPTER THREE:3.0Research Design and Methodology 3.1Introduction3.2Sources of data3.3Research population3.4Primary and Secondary Data3.5Sampling Method used3.6Sample Plan and Sample Size3.7Questionnaire Design3.8Description of Respondents3.9Method of Data Analysis
CHAPTER FOUR:4.0Data presentation and analysis on findings4.1Data presentation4.2Data analysis4.3Interpretation of results4.4Test of hypothesis
CHAPTER FIVE:5.0Summary/Recommendation and Conclusion5.1Discussion of findings5.2Conclusion5.3Recommendations BibliographyAppendix