Credit extension is an essential function of banks and bank management strive to satisfy the legitimate credit needs of the community it tends to serve. This study is aimed at analysing the credit management in the banking industry in Nigeria with particular reference to first Bank of Nigeria PLC. The importance of credit in the economic growth and development of a country cannot be overemphasized. Despite the important role played by credit in the economy, it is associated with a catalogue of risks. The Nigeria banking industry witnessed some failures prior to the consolidation era due to imprudent lending that finally led to bad debt and some ethical facts. The issue of non- performance of asset and declaring of ficticious project has become the order of the day in our banking system as a result of poor credit management leading to bank distress in the industry. Three hypotheses were formulated and tested through use of chi-square on questionnaires administered to various respondents. From the data collected and the tested hypothesis, results showed that: (i) Inadequate feasibility study affects loan repayment in the banking industry, (ii) The diversion of bank loan to unprofitable ventures affects loan repayment and (iii) The problem of poor attention given to distribution of loan has negative effect on banks performance. Amongst several recommendations were the following: (a) Banks should establish sound and competent credit management unit and recruit well motivated staffs (b) Banks should ensure that the chief executive avoid approval in principle in the credit management, and (c) Banks should have a monitoring and control unit or department to carry out a sort of post- modern exercise by way of controlling and monitoring credit facilities and also ensuring completeness of all conditions precedent to draw down.


TABLE OF CONTENTS
Title Page i
Approval Page ii
Certification iii
Dedication iv
Acknowledgement v
Abstract vi

Chapter One
1.0 Introduction 1
1.1 Background Of The Study 1
1.2 Statement Of The Problem 2
1:3 Objectives Of The Study 3
1.4 Research Questions 3
1.5 Statement Of Hypotheses 4
16. Scope Of The Study 4
1.7 Significance Of The Study 5
1.8 Definition Of Terms 6

Chapter Two
Review Of Related Literature
2.0 Introduction 7
2.1 Theoretical Review 7
2.2 Emperical Reviews 51

CHAPTER THREE
Research Methodology 54
3.1 Introduction 54
3.2 Research Design 54
3.3 Sources And Techniques Of Data Collection 55
3.4 Description Of Population And Sample Procedure 55
3.5 Method Of Data Analysis 56
3:6 Determinations Of Critical Values 57

Chapter Four
Data Presentation, Analysis And Interpretation.
4.1 Introduction 60
4.2 Presentation Of Data 60
4.3 Analysis And Interpretation Of Data 60

Chapter Five
Summary, Conclusion And Recommendation
5.1) Introduction 64
5.2 Summary Of Findings 64
5.2 Conclusion 65
5.4 Recommendation 65
Questionnaire 72
Appendix 71
Bibliography 69