CREDIT MANAGEMENT AND THE INCIDENCE OF BAD DEBT IN   NIGERIA MONEY-DEPOSIT BANKS. (A CASE STUDY OF UNION BANK OF NIGERIA PLC)

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Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
 Account Number:  0117780667. 
Swift Code: GTBINGLA 
Dollar conversion rate for Naira is 175 per dollar. 

Note:  We accept bank transfer, ATM cash transfer , Online payment using your ATM , Western union bank transfer.  We will respond to you anytime of the day. 

OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.

form>DELIVERY PERIOD FOR BANK PAYMENT IS  LESS THAN 24 HOURS

CALL OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

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ABSTRACT

This research work was undertaken to assess the credit management and the incidence of Bad debts in Money-Deposit Banks.This work was intended to achieve the following objectives: to appraise and determine the lending procedure of banks, to highlight the extent to which improper project evaluation influence  bad debt of Money-Deposit Banks. Relevant data were collected from both primary and secondary sources. Questionnaire was the main primary data collected instrument employed while data from various relevant publications constituted the sources of secondary data. Upon the analysis of data, the following conclusions were drawn; that sound lending requires a clear-well articulated and easy accessible policy document which spells out the philosophy of lending. On the basis of the above findings, it was recommended that banks should ensure that loans given out to customers should be backed by adequate collateral security. Finally, it is the opinion of the researcher that the management of the Money-Deposit Banks should prevent the incidence of bad debts in Nigerian Banks.

CHAPTER ONE: INTRODUCTION

1.1    Background of the study                                                                        1

1.2    Statement of the problems                                                                      2

1.3    Purpose̸ Objective of the study                                                               3

1.4    Research Questions                                                                                 4

1.5    Research Hypothesis                                                                              5

1.6   Significant of the study                                                                          6

1.7    Scope of the study                                                                                  7

1.8    Limitations of the Study                                                                        8

1.9   Definition of terms                                                                                 9

CHAPTER TWO: LITERATURE REVIEW

2.1     Theoretical Framework                                                                        9

2.2     Government control over credits                                                         23

2.3     Credit Administration in Union  bank of Nigeria plc                            26

2.4     Lending and Credit Analysis                                                                 29

CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY

3.1      Research Methodology                                                                               36

3.2     Research Design                                                                                           36                                                                                                                                                  3.3      Area of Study                                                                                               36

3.4     Population for the Study                                                                                36

3.5     Sample Size Used                                                                                     36

3.6    Instrument For Data Collection                                                                38

3.7    Validation of the instrument                                                                    39

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1    Data presentation and summary of findings                                              41

4.2   Provision and Analysis of Data Question                                                   46

4.3  Test of Hypothesis                                                                                      51

CHAPTER FIVE:  SUMMARY OF FINDINGS,

RECOMMENDATIONS,CONCLUSION.

5.1  Summary of Findings                                                                                       59

5.2  Recommendations                                                                                            60

5.3  Conclusion                                                                                                        62

Appendix                                                                                                                 64

Bibliography                                                                                                             66

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF THE STUDY

In a modern economy,there is distinction between the surplus economic units and the deficit economic units and inconsequence a separation of the savings investment mechanism.This has necessitated the existence of financial institution whose jobs include the transfer of  funds from savers to investors.one of such institution is the money deposits banks,the intermediating roles of the money-deposit banks places them in a position of “trustees´´ of  the saving of the widely dispersed surplus economic units as well as the determinant of the rate and shape of the economic development.The techniques employed by bankers in this intermediary function should provide them with perfect knowledge  of the outcomes of lending such that funds will be allocated to investments  in which the probability  of full payment is certain.However,in practise no such tool can be found in the decision of the lending banker.Virtually all lending decisions are made under creditors on uncertainty.The risk and uncertainty associated with lending decision, situation are so great that the concepts of risk and risk analysis need to  be employed by lending bankers in order to facilitate sound decision-making and judgement.This statement implies that if risks are to be objectively assessed,lending decisions by the money-deposit banks should be based less on quantitative data and more on principles too subjective to provide sound and unbiased judgement.Furthermore,the banks depend heavily on historical information as a basis for decision making.

Apparently aware of the inadequacies of his decisions base,the lending banker has often sought solace in tangible and marketable assets as security giving the impression that lending against such securities is an insurance against bad debts.this makes the banker complacent with  his loan portfolio.The increasing trend of provisions for bad and doubtful debts in most money-deposit banks is a major source of concern not only to management but also to the shareholders who are becoming more aware of the dangers posed by these debts.Bad debts destroy part  of the earning assets of banks such as loans and advances which  have  been described as the main source of earning and also determines the liquidity  and solvency which generate two major  problems, That is profitability and liquidity, has to earn sufficient income  to meet its operating costs and to have adequate return on its investments.

1.2    STATEMENT OF THE PROBLEMS

The problem for this study is to appraise the lending and credit management policies of a typical Money-deposit bank(the Union bank of Nigeria Plc) with a view  of finding the causes,consequences  of bad debts in banks.Year after year,banks suffer much from the part of full loan extended which has  for one reason or the other proved unrecoverable.Banks lose millions of Naira in various  bad debts yearly and despite efforts by bank management, committee of chief inspectors and the bankers committee on the other hand,the wave of bad debts in banks is still on alarming proportion.This is gathered from a combination of literature reviews on the topic.

On the other hand,many banks experienced a lot of bad debts when the new government abandoned the

APPRAISAL OF THE ECONOMIC IMPLICATION OF ELECTRONIC BANKING IN NIGERIA BANKS (A CASE STUDY OF DIAMOND BANK)

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COMPLETE PROJECT  MATERIAL COST 2500 NAIRA OR $10 , WITH THE SOFTWARE 30,000 NAIRA

. A FRESH TOPIC NOT LISTED ON OUR WEBSITE COST 50,000 NAIRA ( UNDERGRADUATE) OR 100,000 FOR SECOND DEGREE STUDENTS. $500. PLUS  FREE SUPPORT UNTIL YOU FINISH YOUR PROJECT WORK. CONTACT US TODAY, WE MAKE A DIFFERENT. DESIGN AND WRITING IS OUR SKILLED.  DESIGN AND WRITING IS OUR SKILLED.

Note: our case study can be change to suit your desire location . we are here for your success.

                                   ORDER NOW

Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
 Account Number:  0117780667. 
Swift Code: GTBINGLA 
Dollar conversion rate for Naira is 175 per dollar. 

Note:  We accept bank transfer, ATM cash transfer , Online payment using your ATM , Western union bank transfer.  We will respond to you anytime of the day. 

OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.

form>DELIVERY PERIOD FOR BANK PAYMENT IS  LESS THAN 24 HOURS

CALL OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

WE HAVE SECURITY IN OUR BUSINESS.   

MONEY BACK GUARANTEE

CHAPTER ONE

1.1       BACKGROUND OF THE STUDY

                        Before the emergence of modern banking system, banking operation was manually done which lead to a slow down in settlement of transactions. This manual system involves posting transactions from one ledger to another which human handles. Figures or counting of money which should be done through computers or electronic machine were computed and counted manually which were not 100% accurate thereby resulting to human errors. Most bank then use only one computer in carrying out transactions which ameliorate the sluggish nature of banking transaction.

Nigeria do not embrace electronic banking early compared to developed countries. Nigeria adopted electronic banking system in the early 2000s.  During the introduction of electronic banking system, the use of raw cash was said to have bred corruption through the “cash and carry syndrome” usually linked with the swift movement of Ghana-must go” bags by some politicians. Such bags as some analyst say, are a major source of corrupt practices as dubious persons seeks to bribe their way to avoid been checked in some sensitive areas or places in a corrupt society.

Since electronic banking started in all Nigeria banks, it has been a woe for civil servants; checks show that some staff in establishments such as the national boundary commission for instance, are yet to receive their salaries for the previous months as efforts to electrically transfer salaries into their account have failed according to Ibrahim, D. (2009).

“One bank will tell you it has transferred your salaries but the supposed recipient bank will tell you it has not received anything leaving you even more confused”, says John, I. (2009). Olekah, J. (2009) while acknowledging the initial hiccups that dogged the system, advises stakeholders against being discouraged as such “teething problems” are normal.

James, A. (2009) a banker reported to vanguard annual report that “we should not destroy electronic-banking by looking at the negative aspects, we must strive towards perfecting it”. James, A. (2009) also says that the volume of data generated by the Government ministry Agencies is much making it a bit difficult for banks to cope, Mathew S. (2009) a worker says in his report to vanguard annual report on banks and cards that government should have done its home work “very well” before introducing the system, “they plugged us into a system they were not prepared for and the result is untold hardship visited on innocent people”.

At this juncture, is good to know what e-banking is all about.

According to Anyawaokoro, M. (1999). Electronic banking is defined as the application of computer technology to banking especially the payment (deposit transfer) aspects of banking. He also defined electronic banking as a system of banking with an electronic communication network which permits on-line processing of the same day credit and debit transfers of funds between member institutions of a clearing system.

According to Clive, W. (2007) in his Academic dictionary of banking, electronic banking is defined as a form of banking in which funds are transferred through an exchange of electronic signals between financial institutions, rather than an exchange of cash, cheques or other negotiable instruments.

According to Omotayo, G. (2007) defines electronic banking as a system in which funds are moved between different accounts using computerized on line/real time systems without the use of written cheques.

According to Edit, O. (2008) in international Journal of investment and finance, electronic banking is defined as a system by which transactions are settled electronically with the use of electronic gadgets such as ATMs, POS terminals, GSM phones, and V-cards e.t.c. handled by e-holders, bank customers, and stake holders.

1.2       STATEMENT OF PROBLEMS

                        As earlier pointed out, there is delay in payment of cheques which lead to the adoption of electronic banking system. Adoption of electronic banking which suppose to ease banking transactions rather resulted to woes to customer. Most people complain of time wasted in banks. This occurs when there is power failure in banks resulting to slow down in operation.

Another problem that emerged was that banks do not have information backup to fall back on should there be any computer break down.

                        In investing in electronic banking, the country will need a large amount of financial resources in computer technology, obviously, the resource is in short supply in Nigeria, couple with high level of poverty. For an efficient functioning of electronic payment system, there must be availability of infrastructural facilities such as electricity and telecommunication network, 

THE EFFECT OF FRAUD ON CONSUMERS SATISFACTION IN GUARANTEE TRUST BANK, KANO ROAD BRANCH, KADUNA

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COMPLETE PROJECT  MATERIAL COST 2500 NAIRA OR $10 , WITH THE SOFTWARE 30,000 NAIRA

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Note: our case study can be change to suit your desire location . we are here for your success.

                                   ORDER NOW

Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
 Account Number:  0117780667. 
Swift Code: GTBINGLA 
Dollar conversion rate for Naira is 175 per dollar. 

Note:  We accept bank transfer, ATM cash transfer , Online payment using your ATM , Western union bank transfer.  We will respond to you anytime of the day. 

OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.

form>DELIVERY PERIOD FOR BANK PAYMENT IS  LESS THAN 24 HOURS

CALL OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

WE HAVE SECURITY IN OUR BUSINESS.   

MONEY BACK GUARANTEE

ABSTRACT
The theme of the study is “The Effect of Fraud on the Consumers Satisfaction in Guarantee Trust Bank Plc” and it is concerned with digging the root causes and analysis of fraudulent activities that occur in Guarantee Trust Bank, its effect on both the customers and the bank and the possible solutions to this menace. The study reveal that the total amount involved in report fraud cases are reducing while actual loss is rising at an alarming rate. The research also revealed that crucial to fraud prevention is the presence of an effective management control system that must be vibrant and flexible. Questionnaires were the main research instrument used in this project, management staff and key customers were the respondents. The finding revealed that fraud has negative effect on banks and customers. It came out that management staffs were not significantly different in their opinion about the effects of fraud. Finally, the study made useful recommendation that would usher combined efforts by all parties in fraud prevention to practically minimize the incidence of fraud in banks. It is recommended that a forum where bankers and all other stakeholders in banking sector could meet to educate one another on the activities of fraudsters is very much desirable. It is also commended, that internal control measures against fraud should be streamlined and evaluated periodically for maximum effectiveness.

CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The importance of the banking industry in the Nigerian economy cannot be overemphasized. Banks have been credited with an enable image of being an important source of capital for the development of the economy. This recognition drives largely from an assumed role of most banking institution in mobilizing various deposits channeling them towards profitable investment outlets. To the extent of the size, type and level of such investment along with other complementary factors that contribute to the nation’s economic development. Banking system therefore has been seen as an agent of economic growth and perhaps economic development.
However, having known the importance of banking industry to the economic development, there exist various factors that restrain the effective functioning of the banking industry the world over. Among these factors is fraudulent activities that is seen to affect almost every bank world over. An important characteristic of fraud is the intent of doing wrong. Thus, fraud could be an intentional distortion of financial statement and misappropriation which involves the act of criminal deception to obtain unjust or illegal advance for which the penalty may be severe, but it also has a wide implication in law relating to. There is general consensus that fraud is caused by three acronyms called “WOE” i.e. Will, Opportunity and Exit. The will to commit fraud is the individual, opportunity to execute the fraud and exit which is the escape from sanction. However bank fraud may be caused by numerous factors – among which are:
• Absence of detailed, manual and poor internal control;
• Inadequate training and retaining bad management;
• Poor bookkeeping and inadequate job rotation;
• The poor e-banking system through internet facilities;
One of the prime means of fraud in our banks today is internet fraud. Some of the frauds are the handwork of outsiders, others are perpetrated by the and sometimes management of the bank concerned. The most significant percentage of fraud is done by the fraudsters in collaboration with bank staff. As a result of this very serious economic crime, some staff in the industry is either being dismissed or their appointment terminated or prematurely retired.
In the banking industry, fraud is the number one the business world. No company is immune to fraud. It is in all workers of life in the government. In insurance, in export trade, the banking everywhere special organization have been formed to combat it, and international police commission tries to deal with it at international level but it has not and cannot be eradicated. It is waxing in strength, it is an expanding industry. However, the researcher was able to lay hands on some commendable write-ups on the 1998 Nigerian Deposit Insurance Corporation (NDIC) annual report on fraud and forgery cases in commercial banks. However, the number of reported fraud cases increased by about 20 percent from its 17 in 1997 to 564 in 1998 on the other hand the total amount involved in reported loses in 1998 reduced to N3,129.11 million from N3,590.31 million in 1997 though the actual 1 expected loss stop at a higher lecel of N673.5 in relative to N224.54 million in 1997 according to write ups on fraud by the Central Bank of Nigeria – the common forms of fraud are organization fraud, confidence schemes (a.k.a 419) and occupation fraud (management employee, computer, procurement and financial reporting fraud). The smooth of the underworld who are principally involved in bank fraud are always ahead of the bank planning, and it is difficult to predict when and how they would strike. They are people whose Intelligent Quotient (IQ) is much higher than the average banker. The fraudsters think and act fast because that is the stock in trade.
1.2 Statement of the Problem
Frauds in financial institutions vary widely in nature, character are method of perpetration in general, it may be classified into two ways: (i) Perpetration (ii) method used on the basis of perpetrations there are three broad categories, internal, and mix. Internal perpetration of fraud are related to those committed by members of staff (insiders). External perpetration are those committed by non-staff while mixed fraud involved outsiders colluding with staff (insiders).
The most important and common types of fraud highlighted by bank Administration Institute (1989) in fraud prevention and detection series are discussed below:
a) Advance Fee Fraud (419): This involves agent approaching a bank, a company or an individual with an offer to access large fund at below market interest rates often for long term. The purposed source of such funds is not specifically identified as the only way to have access is through the agent who must receive a fee or commission “in advance”.
b) Cheque Kiting: Kiting is defined by the US Comptroller of the Currency’s Policy. Guidelines for National Bank Directors as “method whereby a depositor utilize the time required for cheque to clear to obtain an authorized loan without interest charge”.
c) Account – Opening Fraud: This usually starts when a person might use the account within a short period.
d) Money Transfer Fraud: Fraudulent money transfer may result from a request created solely for the purpose of committing a fraud or the alteration of a genuine funds transfer request. A genuine request can be altered by changing the beneficiary’s name or account number or changing the amount of the transfer. These day “yahoo boys: the name given to scammers in Nigeria that send fake emails to would-be victims asking them to apply for fake contracts or fake lottery thereby winning non-existing money from a dead billionnaire’s account in different part of the world. They connive with fraudulent bankers in the Western Union department to withdraw their ill-gotten hard currencies or without the knowledge of the bank as regard to the authenticity of the beneficiary.