MANAGEMENT AND CONTROL OF CREDITS IN COMMERCIAL BANKS: AN OVER VIEW OF COMMERCIAL BANKS IN NIGERIA

MANAGEMENT AND CONTROL OF CREDITS IN COMMERCIAL BANKS: AN OVER VIEW OF COMMERCIAL BANKS IN NIGERIA

ABSTRACT
This project work on management and control of credit in commercial Banks an over
view of the commercial banks Nigeria takes into consideration the extent to which
commercial banks disburses and manages credits (in commercial banks). While a lot of
emphasis is given to good and qualitative credit management in the literature review a
lot of light is also shed on effective monitoring of loans and management of problem
loans.
Credit management which comprises of the analysis of credit, credit policy and statutory
monetary and credit policies will be discussed. In this work the literature review is
limited to the management and control of credit only, since a relationship exist between
loan portfolio and other assets of a bank, alot of restrain was taken by not delving into
the asset portfolio management as it is a point of fact that credit level is determined
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partly by the reserve requirements of banks and it’s liquidity ratio.
The commercial banks put under litmus test here solely because of it’s involvement in
variety of credit facilities and since a major share of it’s assets are in loans and advances.
Thus it will go a long way in explaining credit and management of credit due to its long
varied scope of activities.
Several banks had to contend with the issue of liquidation and none up to date have had
to merge. The major reasons for insolvency of this banks largely is due to the ineffective
credit management by bank and the poor and unqualitative manner of controlling credits.
Thus the analysis therein has shown that the banks have failed to perform certain
essential functions that will guarantee effective and qualitative management of their asset
portfolio. This has led to the numerous folding up of most of this banks , and is
continually threatening survival of majority of them in existence. It is common
knowledge that since this is prevalent in most of the banks, the stability of the banks will
be threatened and the trust depositors have in them will diminish not only depositors, the
trust between themselves too is lacking. It is partly because of this that the CBN has had
to issue circulars on how loans and advances will be and ought to be disbursed while the
NDIC covers the insurance of this banker. It is of note and belief that the activities of
this two parent bodies will go along way to sanitise and rid the system of ineffective
controllers of credit and thus bring back the confidence it has always enjoyed from the
public and the industry itself.

TABLE OF CONTENT

Title page- – – – – – – – – i
Approval page – – – – – – – -ii
Dedication – – – – – – – – -iii
Acknowledgement – – – – – – – -iv
Abstract – – – – – – – – – -v
Table of content – – – – – – – -vi

CHAPTER ONE
INTRODUCTION – – – – – – – -1
1.0 Background of the study – – – – -1
1.1 Statement of the problem – – – – -5
1.2 Purpose of the study – – – – – -6
1.3 Significance of the study – – – – -8
1.4 Research questions – – – – – -9
1.5 Scope of the study – – – – – – -10

CHAPTER TWO

LITERATURE REVIEW – – – – – – -11

CHAPTER THREE

Research methodology – – – – – – -39
Design of study – – – – – – – -40

CHAPTER FOUR

Presentation, analysis and interpretation of data – -48

CHAPTER FIVE

Summary of findings – – – – – – -60
Conclusion – – – – – – – – -61
Recommendations – – – – – – – -62
Suggestions for further research – – – – -64
References – – – – – – – – -65
Appendix I – – – – — – – – -68
Questionnaire. – – – – – – – -69

MANAGEMENT AND CONTROL OF CREDITS IN COMMERCIAL BANKS: AN OVER VIEW OF COMMERCIAL BANKS IN NIGERIA