The Problems Of Debt Management In Financial Institution

The Problems Of Debt Management In Financial Institution

Abstract

This work is to accomplish exploration on debt recovery ways in the banking sector issues, problems and prospects( A study of Union Bank of Nigeria plc). This exploration will expose hownon-distressed banks bring effective resolution to a worried bank because of the effective means of recovering the debts. And if there’s any loss in one bank, it leads to a loss of confidence in the entire banking system. This exploration will state the end at finding result to the debt and general causes of fiscal torture in banking sector, and looking into chancing last result. This exploration work will find out whether banks take loan policy into consideration when granting loans to guests. It’ll determine the causes of loan decinquency of banks and also dissect the goods of loan demand and take recommendations for enhancement of debt recovery in the banking sector. This exploration work will determine the problems associated with or difficulty in loan recovery.

TABLE OF CONTENTS

Title runner i

blessing runner ii

fidelity iii

Acknowledgement iv

Abstract v

CHAPTER ONE

preface

Background of the study 1

Statement of the Problems 3

objects of the study 3

exploration Questions 4

exploration thesis 4

Significance of the Study 5

compass and Limitation of the Study 7

description of functional Terms 9

References 12

CHAPTER TWO

REVIEW OF RELATED LITERATURE

An overview 13

Literature review 13

Debt and Debt operation Defined 14

Types of Debt 14

How Banks produce plutocrat 16

Common Causes and Problems of bad Debts 21

Abecedarian of Credit Analysis 27

Prudential Guideline in Nigerian Banking 31

Minimizing Risk Associates with Bank Lending 34

The Need for Frequent Government Regulation 38

Short Coming of the Traditional system of

Credit Analysis 43

CHAPTER THREE

exploration METHODOLOGY AND DESIGN

An overview 46

Sources of data 46

Primary data 46

Secondary data 47

Population of the study 47

Sample and slice fashion 48

Instrument use in collecting sample size 49

confirmation and trustability of the Instrument used 49

System Of Data Donation And Analysis 49

Chapter Four

Data Presentation, Analysis And Discussion Of Findings

An overview 52

Donation Of Data 52

Donation Of Analysis Of Data 61

Testing of thesis 62

Discussion of findings 64

Chapter Five

Summary Of Findings, Conclusions And Recommendations

Summary of the Findings 65

Conclusions 68

Recommendations 68

Suggestions for farther studies 69

Bibliography 71

Excursus I 72

Excursus II 73

Chapter One

Preface

Background Of The Study

fiscal institution is that sector of the frugality that furnishing the community with plutocrat balance and payment up of the banks and sector of the frugality is made up of banks andnon-banks fiscal institutions like fiscal house, mortgage house and other institutions that give fiscal services and intermediation to the colorful member of the frugality.

In ultramodern society, profitable substance and progress depend largely on position of savings in a Nation. It happens that someone’s savings is made available to an investor for productive adventure like what happens in marketable Banks. When this happens, a debt is created. A debt has been described as an obligation to made unborn payment.

It’s against the borrower’s pledge to make unborn payment. As a result of this, the possessors of these finances face the threat of not getting their plutocrat in good time or losses it entirely when the custodian of these finances can not manage them well hence debt operation becomes a singvenon to guarantee the confidence of the individual depositor that his plutocrat is safe.

Debt operation involves arrangement put in place for prepayment of these credit installations

In the same way, it’s also fulfill a wider part in safe guiding the stability of the individual bank and therefore the banking system as a whole. At this juncture, the exploration mentioned that this work is grounded on the constraints in relation to Debt tagged on the problems of operation in Nigeria Financial Institutions( A study of Union Bank of Nigeria Plc. Garden Avenue Enugu).

lately, the Banking sector suffer a traumatic experience whereby some Banks were judged worried; this, still was a direct incarnation of indecorous debt operation.

Statement Of The Problems

1. Failure to pay back loan granted by the creditors as and when due.

2. incapability to serve well by the bank due to incapability of the creditors to pay back.

3. shy measures of working capital operation in the bank.

Objects Of The Study

1. To find out if creditors don’t pay back loans as and when due.

2. To expose the reasons behind banks failure to serve well.

3. To discover how shy the measures of working capital operation is.

Exploration Question

1. How can the debtor be considered responsible for their debts operation?

2. Will good analysis of trade debt operation help to measure an effective working capital operation in the fiscal institution?

3. How does debt exposes banks to credit pitfalls?

4. How will bank directors know the able borrowers in order not to expose the capital structure of the banks to debt?

5. Can fiscal institutions apply some measures to recover their plutocrat from their borrowers?

Exploration Thesis

Thesis One

H1­

The debtors exposes banks to credit threat

H0­

The debtors don’t exposes banks to credit threat

Thesis Two

H1

The analysis of trade debt operation help to measure an effective working capital operation in the fiscal institution

H0

Th