Credit Management Techniques in United Bank for Africa (UBA) Plc. Gboko Branch.
ABSTRACT
This work was carried out to appraise credit management techniques in United Bank for Africa (UBA) Plc, Gboko. Primarily, the work sought to find out the credit management techniques adopted in United Bank For Africa (UBA) Plc. Gboko, to trace the loads and advance granted by United Bank for Africa (UBA) Plc, Gboko and to establish the relationship that exists between credit management techniques and the performance of the Bank, among others.
A survey research method was used in the work and the data collected analysed using the descriptive and inferential statistics. From the analysis, it discovered that in United Bank for Africa (UBA) Plc, Gboko, the major credit management techniques used are the appraisal, approved limit and instalment disbursement techniques.
TABLE OF CONTENTS
CHAPTER TITLE PAGE
Cover sheet ………………………. i
Title Page ………………………. ii
Certification ………………………. iii
Dedication ………………………. iv
Acknowledgement ………………………. v
Abstract ………………………. vi
Table of Contents ………………………. vii
List of Tables ………………………. x
List of Appendices ……….. …………… xi
1.0 INTRODUCTION
1.1 Background Statement e ……………………. 1
1.2 Statement of the Problem ……………………. 2
1.3 Research Objectives ……………………. 3
1.4 Research Questions ……………………. 4
1.5 Research Hypothesis ……………………. 5
1.6 Significance of the Study ……………………. 6
1.7 Scope of the Study ……………………. 6
1.8 Research Assumptions ……………………. 7
1.9 Organization of Terms ……………………. 8
1.10 Definition of Terms ……………………. 8
1.11 Brief Historical Background and Access Bank Gboko. 10
2.0 REVIEW OF RELATED LITERATURE
2.1 Preamble ………………………………….. 12
2.2 General Overview of Asset Prot-folio of Banks … 12
2.3 Concept and Nature of Bank Credit………………… 14
2.4 Lending Objective and Loan Policies of the Bank …15
2.5 Lending Process of Banks ……………….. 17
2.6 Principle of lending ……………….. 17
2.7 Theories of Bank lending ……………….. 19
2.8 Types of Lending ……………….. 21
2.9 Different types of loan and their features …………. 23
2.10 Credit Management strategy ……………….. 38
3.0 RESEARCH METHODOLOGY
3.1 Preamble ……………….. 31
3.2 Research Design ……………….. 31
3.3 Population ……………….. 32
3.4 Types of Sources of Data …………………32
3.5 Method of Data Collection …………………32
3.6 Area of Study …………………33
3.7 Techniques of Data Analysis …………………33
4.0 DATA PRESENTATION, ANALYSIS AND
INTERPRETATION
4.1 Preamble …………………34
4.2 Questionnaires Distribution and Collection……….. 34
4.3 Credit Management Techniques ………………..36
5.0 SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary of work ……………51
5.2 Conclusion ………… 52
5.3 Recommendation …………. 53
5.4 Areas for Further Research …………. 53
Reference ………….. 54
Appendixes ………….. 58
INTRODUCTION
Lending is one of the main functions of the Banks. Banks extend credits to their customers in the form of loans, overdraft and advances. The sum of these credits forms the debit or credit portfolios of the financial institutions.
Debts are presented as liabilities to the customers as they are under obligation to pay interest and principal upon maturity (Edwin, 2005). One outstanding problem in lending is that some customers fail to pay the interest and principal as agreed in the loan contract.
This constitutes a major risk element to Banks, shareholders and the financial system as a whole. Credit risk as noted by Ehbodaghe (1995) is the chance that that extended credit by an organization will not repay with the result that the moment, the risk with the largest loss incidence to Nigerian Banks.
For example, at the end of 1990, total classified (bad and doubtful) loans and advances which could not be recovered by Banks stood at N11.9 billion.
REFERENCE
Abdullahi, L.E. (2002). Imperative of Accounting System in Business operations and Performance in Selected Enterprises in Kaduna State. M.Sc. accounting Thesis, Ahmadu Bello University, Zaria, Nigeria, p.58.
Ademola, S.T. (2001) Banking operation and economic development in developing Economy. Business Times, July 23, p.29.
Adeyemi, A. (2005) Re-examination of lending Processes in Nigerian banks. A seminar paper for senior mangers of Eco bank plc.
Adikanye, F. (1986) Element of banking in Nigeria. Lagos: F&A publishers
Akpan, I. (1998) Beyond banking reforms in Nigeria. Journal of banking and financial issues. 1:91-97.
StudentsandScholarship Team.