INTRODUCTION
1.9 BACKGROUND OF STUDY
The banking industry has been known for its intermediary role in providing financial assistance (credit) needed in the economy. this role of financial intermediation is carried out in so many ways. First to be mentioned is the granting of loans and advances to customers which constitutes the major part of banking lending. Apart from loans and advances, other forms of bank credits like bond issued banks for and on behalf of their customers.
In providing credits or for business venture, banks should as a matter at important take all necessary steps to ensure that advances are granted to those customers who can and will make judicious use at loans so that repayment will not become a problem. Therefore credit must be made to people who are capable for utilizing it well and repaying back the loan at its maturity data. Affairs at banks can be explained by reference to the fact that “loan and advances are the large single item in the asset structure of Nigeria commercial banks; it also constitutes the major source at the operating income at banks and also the most profitable asses for the employment of bank funds.
According to Olashore, “credit (Loan and advances) are important to the bank balance, they account for a large proportion at banks income; such operating income produced from sound investment and effective management of such funds in credits enables the bank to:
(i) Pay depositors interest
(ii) Pay investors dividend
(iii) Pay government tax
(iv) Have further investment and
(v) Maintain adequate reserves.
The actual work in connection with the management and conversion of such funds into various types of credit facilities in an operating function is performed by the credit department of commercial bank instruct compliance by the “Board of Director” at the bank, lie annual credit policy guidelines and prudential guideline (1990) of the Central Bank of Nigeria (CBN) and other monetary and fiscal policy issued by the government of Nigeria. The credit department is usually headed by a loan officer manager who has acquired a high skill experience and personal judgement criteria in credit administration.
Medium - term loans and long-term loan including overdraft facilities.
TABLE OF CONTENT
Title page ii
Approval page iii
Dedication iv
Acknowledgement v
Proposal vi
Table of content viii
Chapter one
Introduction 1
1.1 Background of study 1
1.2 Statement of the problem 3
1.3 Purpose/objective of the study 6
1.4 Research questions 6
1.5 Research hypothesis 6
1.6 Significance of the study 7
1.7 Scope, limitations and delimitations 8
1.8 Definitions of terms 9
Reference 11
Chapter Two
Review of related literature 12
2.1 Definition of bank credit 12
2.2 Reference 27
Chapter Three
Research design and methodology 28
3.1 research design 28
3.2 area of study 28
3.3 Population 29
3.4 sample and sampling techniques 29
3.5 instruments of data collection 30
3.6 method of data presentation 31
3.7 methods of data analysis 32
Reference 34
Chapter four
Data presentation and analysis 35
4.1 data analysis and test of hypothesis 39
Reference 44
Chapter five
Findings, recommendation and conclusion
5.1 Findings 45
5.2 Recommendation 46
5.3 Conclusion 47
Bibliography 48
