ABSTRACT
The Nigeria Banking sector has witnessed a lot of set back in the last decade. This is as a result of series of huge bad debts which resulted to many banks going into liquidation. Undue mergers and acquisition has taken place in an effort to cope with the challenges of existence and survival as a result of financial distress which is mainly caused by irrecoverable debts. It is in an effort to mitigate this problem that this research “Causes and Implications of Bad Debts in Nigeria’s Commercial Bank’s” is most necessary.
This research reveals the causes of bad debts in commercial banks as: lack of adequate knowledge of project appraisal techniques, poor economic condition, lack of project monitoring, connected lending, deliberate falsification of account records by the prospective borrower, bad judgment by the banker etc.
Once bad debt occurs, series of implication follow immediately or at least in the short run. These implications adversely influence both the bank in question and the entire economy.
To remedy these problems, the research recommended that banks employ only skilled diligent, discreet and professional bankers as their lending officers. It is also important that the condition of the economy is re-engineered by the economic team.
TABLE OF CONTENTS
Title Page ii
Approval page iii
Dedication iv
Acknowledgement v
Abstract vii
Table of Contents ix
CHAPTER ONE
1.0 Introduction 1
1.1 Background of the study 1
1.2 Statement of the Problem 3
1.3 Purpose/Objectives of study 4
1.4 Research Question 4
1.5 Research Hypothesis 5
1.6 Significance of the study 6
1.7 Scope, Limitation and Delimitations
of the study 8
1.8 Definition of terms. 9
References
CHAPTER TWO
2.0 Review of Related Literature 11
2.1 Credit Management In Financial Institutions 12
2.2 Factors Responsible for Bad Debts in
The Banks 14
2.3 Early Warning signals to bad Debt 16
2.4 General Problems of Bank Lending 18
2.5 Implication/Effect of Bad Debt on Banks 24
2.6.5 DECLINE IN FOREIGN INVESTMENT == 29
CHAPTER THREE
3.0 RESEARCH DESIGN METHODOLOGY = = 32
3.1 RESEARCH DESIGN = = = = = 32
3.2 AREA OF THE STUDY = = = = = 32
3.3 POPULATION OF THE STUDY = = = 33
3.4 SAMPLE AND SAMPLING TECHNIQUE = 33
3.5 INSTRUMENT OF DATA COLLECTION = 35
3.6 METHOD OF DATA PRESENTATION = = 35
3.7 METHOD OF DATA ANALYSIS = = 35
CHAPTER FOUR
4.0 DATA PRESENTATION AND ANALYSIS = = 37
4.1 INTERVIEWS FOR THE SENIOR STAFF = = 37
4.2 INTERVIEWS FOR BANK CUSTOMERS = = 43
4.3 TEST OF HYPOTHESES = = = = 45
CHAPTER FIVE
5.0 Findings, RecommenAation and Conclusion 55
5.1 Findings 55
5.2 Recommendation 57
5.3 Conclusion 58
Bibliography 60
