IMPROVING THE GROWTH OF THE MANAGEMENT OF LEARNABLE FUNDS IN COMMERCIAL BANKS IN NIGERIA
INTRODUCTION
BACKGROUND OF THE STUDY
IMPROVING THE GROWTH OF THE MANAGEMENT OF LEARNABLE FUNDS IN COMMERCIAL BANKS IN NIGERIA.
banking institutions play in mobilizing various deposits and deploying same towards feasible and viable money yielding ventures.
Banks through the provision of loans and advances, which are the lifeblood of the business community, occupy a very important position in the structure of the nations economy. The size, type and level of such profitable outlets, along with other complimentary factors contribute to the improvement of the economic well being of the country in which these banks are located. As a result of this, banking institutions have been seen as agents of economic growth and perhaps economic development. These deposits which are loanable funds can only be made available to banks, if customers make substantial deposits, which may accrue from loans and advances. This enables the banks to run its day to day administration cost remain in business and pay satisfactory dividend to its shareholders. Thus banks have a lending policy to establish the director and use of funds from shareholders deposits, to control the composition and size of loans portfolio and determine the general circumstances under which it is appropriate to make advances.
Such loans and advances, are put into productive use by borrower, which leads to increased productivity and profits. These borrowers as a result of the increased profits are able to pay back the principal as well as the interest on such loans and advances, while the bank in turn will extend such repayment as loan and advances to other potential borrowers.
TABLE OF CONTENTS
PAGE
TITLE PAGE
CERTIFICATION
DEDICATION
PREFACE
ACKNOWLEDGEMENT
ABSTRACT
TABLE OF CONTENT
CHAPTER ONE:
1.0 INTRODUCTION
1.1 Background of the study
1.2 Statement of the problem
1.3 Objective of the study
1.4 Significance of the study
1.5 Research question
1.6 Hypothesis
1.7 Scope and limitations
CHAPTER TWO:
2.0 REVIEW OF RELATED LITERATURE
2.1 Commercial Banking in Nigeria: Origin and development
2.1.1 History of Trade Bank Plc
2.1.2 History of Inland Bank
2.2 Commercial banks and economic development
2.3 Banking credit facilities and the Nigerian Economy
2.3.1 The bank loans and advances
– Overdrafts
– Short term loans
– Medium term loans
2.4 Commercial Bank lending criteria
2.4.1 Basic Principles of lending
2.4.1.1 Safety of advance
2.4.1.2 Suitability of advances
2.4.1.3 Profitability of advances
2.4.2 Factor that influence commercial bank lending policies
2.4.2.1 Capital position of banks
2.4.2.2 The risk and profitability of various types of loan and advances
2.4.2.3 Suitability of deposits
2.4.2.4 The position of the Economy
2.4.2.5 Monetary and Fiscal policies
2.4.3 The commercial bank lending policies
CHAPTER THREE:
3.0 RESEARCH METHODOLOGY
3.1 Source of data
3.2 Study area
3.3 Sample (Specimen Banks)
3.4 Analytical techniques.
CHAPTER FOUR:
4.0 PRESENTATION AND ANALYSIS
4.1 Test of Hypotheis one
4.2 Test of hypothesis one
4.3 Test of hypothesis one
4.4 Test of hypothesis one
CHAPTER FIVE:
5.0 SUMMARY OF FINDING, RECOMMENDATION AND CONCLUSION
5.1 Causes of loan default in Commercial bank lending
5.1.1 Bank customers.
– Lack of strict adherence to the principles of good lending
– Poor credit analysis
– Lack of supervision and control of loan account
– Dishonest Bank officials
– Unqualified and conservative managers and lending officers.
– Lending on political grounds.
5.2 Government policies
5.2.1 The Banks
5.2.2 The customers
5.2.3 The economy
5.3 Benefit of impending the management up loanable funds in commercial bank lending.
5.4 Recommendations.
5.4.1 Adhere strictly to the principles of good lending
5.4.2 Valuation of security, the bank staff
5.4.3 Business advisory unit (credit agency)
5.4.4 Supervision and control of loan account
5.4.5 Training of the managing and lending officers.
5.4.6 Loan syndication
5.4.7 Ensure realistic integrity of the credit departments.
5.4.8 Rescheduling of loan
5.4.9 Privatize commercial banks with substantial government interest.
5.5 Conclusion
Bibliography
Questionnaire
