Home»Banking and Finance» Credit management and issues of bad debts in deposit money banks in Nigeria - a case study of Access Bank, Bida branch

Credit management and issues of bad debts in deposit money banks in Nigeria - a case study of Access Bank, Bida branch

 Department: Banking and Finance  
 By: usericon Expresshubpub  

 Project ID: 2742
   Rating:  (3.1) votes: 10
Rate this project
This paper examines credit management and issues of bad debt in deposit money banks in Nigeria, using Access Bank Plc, Bida branch as the case study. It presents a framework to x-ray the risk and to validate the checks and balances to prevent or rather reduce the risk. The study uses both primary and secondary tools for data collection to determine the causes of bad debts and the management of credit. Chi-square model and simple percentage were applied to validate the result spanning the period 2013 to 2018. Lending is one of the major functions of banks though the riskiest. Yet any bank that wants to remain in business must lend. Due to the fact that a bank’s primary function is to act as an intermediary between savers and borrowers, the barometer for measuring their earnings is interest from lending. Lending is a risk. Granting of credit is a risk that can be viewed as the most important risk which Nigerian banks face bearing in mind the staggering size of their non-performing assets. Credit risk, therefore, is the risk that could occasion a loss for a bank due to a default by a customer in meeting its obligation. It is observed that an incessant increase in interest rate is a strong and statistically important factor that causes bad debt in Nigeria commercial banks. Banks Management should establish sound lending policies, adequate credit administration procedure and effective and efficient machinery to monitor lending function with established guidelines, reduce interest rates on lending. They should study the character and financial statement of the borrower before granting them loans. ...
Preview +
Other Banking and Finance project topics and materials you might be interested in
»The role of central bank of Nigeria (CBN) in the development of Nigeria financial sector
»Appraisal of the economic implication of electronic banking in Nigerian banks (A case study of diamond bank)
»Evaluation of the impact of liquidity management on banks performance in Nigeria ( A case study of UBA )
»The roles of central bank of Nigeria in the prevention of bank failure or liquidation (A case study of central bank of Nigeria 2005-2009)
»The impact of strategic planning on banks performance in Nigeria (A case study of united bank for Africa plc)
»The role of financial institutions in promoting banking habit and saving capital formation in Nigeria
»The effectiveness of monetary policy measures in controlling inflation in Nigeria
»The effect of electronic banking on fraud reduction in bank (A case study of access bank plc)
»Problems and challenges facing finance houses in the Nigerian economy ( A case study of mortgage bank owerri )
»Motivation as a way of reducing fraud in banking industry ( A case study of UBA and Fidelity bank )
»The impact of insurance industry on the economic growth of Nigeria (A case study of nicon and hallmark insurance companies 2005-2009)
»Identification and management of bad debts in Nigeria commercial banks(A case study of UBA plc)
»The contribution and effect of computer to modern day banking in Nigeria (A case study of zenith bank and first bank plc)
»The use of accounting information in assessing control and performance in an organization (A case study of first bank of Nigeria owerri)
»The opportunities and challenges of the new pension scheme for financial institutions in Nigeria (2004-2011)

Upload Project

Do you have project materials to share? Upload and earn with it.