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Effectiveness Of Credit Management In The Banking Industry
[A CASE STUDY OF FIRST BANK OF NIGERIA PLC]
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1.1 PURPOSE AND OBJECTIVE OF THE STUDY
The main purpose of the study is to measure the credit administration pattern of commercial banks using first bank Nigeria Plc as the case study.
The specific objectives of the study are:
a. To examine the credit policy and practices of first bank
b. To review the credit administration and control procedures in the bank.
c. To examine the management of bad debts and recovery process in the bank.
d. To measure the effective of the procedure adopted in B and C above.
e. To identify constraints associated with loan management
f. To make recommendations based on the finding of the study.
1.2 SCOPE OF STUDY
The study covers lending operation of first bank Nigeria plc which constitute less than one percent of the total number of banks currently licensed to operate banking business in Nigeria in accordance to decree no 25 of 1991. also, within the bank, the study will not be restricted only to the banks on credit administration and control but all activities that makes effective management of credit.
1.3 LIMITATION OF STUDY
Apart from the financial and time constraints that limited the scope of study, a bank selected out of 90 banks operating in the commercial banks in the country could not be a said to be a good representation or sample of banks required to generalized the lending policies and practices in the nigeria banking industry. It should also be noted that the officers of th bank are wary of disclosing certain or vital information often tagged as confidential because of the oath of secrecy’ sworn to by them. This equally limited the extend to which useful data were made available.
1.4 BACKGROUND OF THE STUDY
First bank of Nigeria plc, for over a century, has distinguished itself as a leading banking institution and major contributor to the economic advancement and development of Nigeria.
Founded in 1894 by a shipping magnate from Liverpool, sir Alfred jones, the bank commenced as a small operation in the office elder Dempter and company in lagos.
The bank was incorporated as a limited liability company on Marc 31, 1894, with head office in Liverpool. It started business under the corporate name of the bank for British west African (BBWA) with a paid-up capital of 12,000 pound sterling, after absorbing its predecessor, the African banking corporation which was established in 1892. This signaled the pre-eminent position which the bank was to establish in the years of operation, the bank recorded an impressive growth and worked closely with the colonial government in performing the traditional functions of a central bank such as specie in the west African sub-region.
To justify its west African coverage, a branch was opened in Accra, Gold cost (now Ghana) in 1896 and another in Freetown, Sierra Leone in 1898. These marked the genesis of the bank’s international Banking operations. The second branch of the bank in nigeria was in the old calabar in 1900 and two year later, services were extended to Northen Nigeria.
Currently with 339 branches spread throughout the federation, the bank maintains the largest branch network in the industry.
1.5 STATEMENT OF THE PROBLEM
One of the most important problems of the organization is lack of adequate finance to carry out their function successfully.
It is believed that availability of fund can yield so good result and contributed to the stability of an organization. Also lack of enough manpower can lead to laxity in all areas of financial management in an organization. Frustration of these desires of credit management could lead to collapse of an organization. So credit management is very important to an organization in such organization is to survive any economic crisis.
In the light of above, this research intends to find out whether this good and strong credit management which will be supported with interview and it there are laxities in any area, the research intend to sort out what measures to take.
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ABSRACT - [ Total Page(s): 1 ]ABSTRACTThe research work is basically concerned with the effectiveness of credit management in the banking industry. It will also discuss about the emergence of banking industry in Nigeria.The research will also discuss about the meaning, benefit of banking industry, purpose of banking industry, causes and types of lending and credit facility and tools used in loan monitoring and supervision.This research work will be divided into five (5) chapters in – order to have a better understandi ... Continue reading---
