Computerized Credit System
(A Case Study Of Nsehe Bank Plc, Uyo).
1.2 Background Of The Study
The late 1980s and early 1990s witnessed rising non performing credit portfolios in banks and these significantly contributed to the financial distress in the banking sector source (Nsehe Bank). Also identified was the existence of predatory debtors in the banking system which involved the abandonment of their debt obligations in some banks only to contract new debts in other banks source (Nsehe Bank). (Furthermore, the use of status enquires on bilateral basis between banks was characterized by some weaknesses. Status enquires were regarded as business courtesies to which some bank either did not respond to or gave vague replies. In spite of the systemic weakness, many banks continued to extend fresh facilities to customers who already hardcore and un-serviced debts with other banks and financial institutions. On the part of the regulators, the paucity of credit information and inhibited consistent classification of credits granted to certain borrowers and their associated companies. Consequently, the need for a database from which consolidated credit information on borrowers could be obtained became imperative.
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