ABSTRACT
This research work was undertaken to assess the Loan granting and its recovery problems on Commercial Banks. The research was intended to achieve the following objectives: To find out the several problems facing loan recovery, the effects of loan default on commercial banks and the measures that will be used in reducing the incidence of loan default. Relevant data were collected from both primary and secondary sources. Questionnaires were the main primary data collection instrument employed while data from various relevant publication constituted the sources of secondary data. Upon the analysis of data, the following conclusions were drawn: That problem of loan default stemmed from the fact that there is unavailability of security to be disposed by banks to realize funds. And also customer’s attitude towards loan payment. On the basis of the above findings, it was recommended that commercial banks should use some risk control measures to guide against loan default. Also, before granting loan, they should examine critically the project statement submitted by the customer or borrower which will help them to find out the realistic repayment pattern and also help them in knowing if the projects are realistic based on the customer’s past performance. Also, the
Central Bank of Nigeria should create a conducive environment for the successfully operation of commercial banks in Nigeria.
CHAPTER ONE
1.1 BACKGROUND OF THE STUDY:
Virtually, every business has a credit relationship with a financial institution, especially banks. Some rely on periodic short term loans to finance temporary working capital needs. Others primarily use long-term loans to finance capital expenditure, new acquisitions or permanent increases in capital. Regardless of the type of loan, all credit request mandate a systematic analysis of the borrower‟s ability to repay as at when due.
Commercial banks carry on ordinary banking business with the general public, changing cash for bank deposits and bank deposits for cash,
transferring bank deposit from one corporation to another, giving bank deposit in exchange of bills of exchange, providing of trustees and executor‟sservices, providing safe custody of funds and valuables as well as foreign exchange remittance.
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Item Type: Project Material | Attribute: 48 pages | Chapters: 1-5
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