Our Archives

Call 09159097300, or 09067754232 for any enquiries.

Project Topic:

MANAGEMENT OF BAD DEBTS IN MICRO FINANCE BANKS IN NIGERIA ( A CASE STUDY OF SIX SELECTED MICRO FINANCE BANKS IN ANAMBRA STATE)

Project Information:

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 81 ::   Attributes: Questionnaire, Data Analysis,Abstract ::   6,076 people found this useful

Project Body:

The article on this topic (management of bad debts in micro finance banks in Nigeria) is an extract from literature review of the project material. The complete project work would be made available when you subscribe for the full material.

 

CHAPTER TWO

LITERTAURE REVIEW

CONCEPTUAL REVIEW

CREDIT AND DEBIT MANAGEMENT

 The place of banks in national economy is a significant one, which acts as prime mover of the economic life of any nation. The importance and  significance of banks with respect to economic and social development of a nation cannot be under emphasized. Banks are known to perform many functions of deposits; mobilization and tending which is perhaps to most significant of their functions. Indeed the two prime functions portray banks as the agent who redirects funds from the surplus sector to the deficit sector while earning a comfortable margin surplus sector and then selvey for their services as the intermediaries. Whole deposit mobilization can be categorized as a relatively executing activity. Lending is essentially a logical follow up of deposit mobilization. The banks are responsible for the safety of funds entrusted to them, while also responsible for channeling the funds to the owners. The quality of the banks fund lending decision significantly  determines the banks ability to effectively play the role they have assumed. Apart from the fact that lending is a significant function of the banks. For the above reason, loans and advance have been found to constitute the largest proposition of the banks assets and assets possess the highest rate of return released to the other alternative investment. This is to determine the various techniques of methodologies of credit, the appropriate combination of these techniques so as to achieve success and minimize losses were not in banks credit and lending activities, this basic aim offers the opportunity to bridge the gap between savings and investment in the economy.

 Credit management also involves monitoring of operations of account at the branch bank have been taken for a ride in the past by “smart” customers, who give the impression that turnover was being done, granted by then, where all that was being done kite flying or cash recycling. Adekowary (1986) acquired that a customer who indulges in this practice usually have two or more accounts at two or more different banks or branches he draws a cheque on his account. The bank knowing fully well that there are no funds in that account with the bank, he then draws all the uncollected funds out at bank “P” and immediately deposits in bank ”x” another cheque drawn on non-existence funds in his account by bank “T”. This is a simple example of kiting, by this, it means a customer can fraudulently make use of bank funding without proper authority. Bank staff must therefore watch program operation on customers’ account closely and report unusual activities to their managers. However, some indication of kiting suspect as recently enumerated by Kotawa of (Savana Bank) as an experienced operating officer are;

Consistent increase in deposit amount

Excessive account activities in relation to type of account, that is, high turnover with constant daily balance.

Depositors usually concern with daily states of account

A pattern of daily deposit made to cover cheque received  for payment on the current day and finally

Frequent purpose of the customers related to company or other banks

 

OTHER QUANTITATIVE CREDIT MANAGEMENT TECHNIQUE

     This involves the control through loan disbursement and other drawn down conditions. Olalusi (1989) argued that no loan should be disbursed to the customer when necessary agreement forms have not been duly completed by the customer or the security document have been signed yet.

 Osiayemia (1981) maintained that there are dangers Inherent in providing a personal or corporate body with much or two little fund at a given moments. The loan disbursement is therefore linked with the flow cycle of the customers hence an appropriate disbursement arrangement must be applied. Also to be applied are certain empirical disbursement criteria and consideration is specific type of credit such as housing loan, agricultural loans and over draft for specific purpose.

 

SECURITY CONSIDERATION IN DISBURSEMENT INCLUDES

    Loans should not be disbursed until customers satisfied all security formalities. The danger of allowing him to drawn down the loan while he is yet to comply with the security documentation cannot be over emphasized. When drawn down has not been effected, customer is over willing to co-operate to finish the required documentation which is not always the case once he has the money.

 No disbursement should be allowed against anticipating approvals. Valid approvals needs to be attained from the approving authority before disbursement is allowed because jumping the gun in loan disbursement is dangerous as the banks position maybe jeopardized by opting it in a fail accomplished position.

 Finally all disbursement should pass through the customer’s current accounts.

 

DANGER SIGNALS ON BAD AND DOUBTFUL DEBTS

 Dangers signal are usually not lacking through sometimes they descend like sudden foundation without prior notice with experience instinct for sensing and spotting troubles.

 The following points will serve as a useful question;

Excessive rigidity in the accounts for examples difficulty in obtaining cover for cheque, dividing monthly saving low or non-existence turnover on the account.

Evidence of delay in payment of trade accounts

Long debt in producing financial statement particularly audited account

Heavy borrowing from other sources

Inability to meet loan installment

Increase in number of cheque being jopped at customer instances or returned from lack of funds

Poor quality of current assets

Failure to honour banks, inculcate to come for discussion particularly in the customers used to make enforcement calls at the Bank in the first.

 

CAUSES OF BAD DEBTS IN MICRO FINANCE BANKS

 In the Nigeria context, there has been increasing trends of bud and doubtful debts in the banks and bankers and their shareholders and also the government officials are begging to show concern on this issues by making pronouncements insisting on the need to correct the situation.

 However, for effective coverage on organized reviews the causes of bad debts in micro finance banks are as follows;


Get The Complete Project »

Project Department:

MORE BUSINESS ADMINISTRATION FREE UNDERGRADUATE PROJECT TOPICS AND RESEARCH MATERIALS

Instantly Share this Project On Social Media:

CLOSELY RELATED BUSINESS ADMINISTRATION FREE UNDERGRADUATE PROJECT TOPICS AND RESEARCH MATERIALS

A CRITICAL STUDY ON THE EFFECTS OF JOB STRESS ON THE PERFORMANCE OF BANKERS IN NIGERIA (A CASE STUDY OF UNION BANK, CALABAR)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 80 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   12626 engagements

ABSTRACT The study investigated and evaluated job stress and its effects on job performance among members of staff at Union Bank. The study sought to find out how work-related stress could affect the...Continue reading »

A STUDY ON THE IMPACT OF EMPLOYEE GRIEVANCES AND THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF NIGERIA BOTTLING COMPANY, LAGOS STATE)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 80 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   7792 engagements

ABSTRACT Maintaining good employee-employer relationship is one criteria for an organization to succeed. If employees are not happy with management and their fellow colleagues at workplace, organizat...Continue reading »

AN APPRAISAL OF MATERIAL MANAGEMENT CONCEPT AS A STRATEGY FOR ACHIEVING HIGHER PRODUCTIVITY IN NIGERIAN BOTTLING COMPANY

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 78 ::   Attributes: Questionnaire, Data Analysis,Abstract

CHAPTER ONE INTRODUCTION 1.1 Background of the Study The Need for Appraisal of Material Management Concepts as a strategy for achieving higher productivity and to make up with the growing complexi...Continue reading »

ANALYZING PERFORMANCE APPRAISAL TECHNIQUES IN UNION BANK NIG PLC

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 71 ::   Attributes: Questionnaire, Data Analysis,Abstract

CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY In any evaluation of the condition necessary for the growth and survival of an organization, the role of performance appraisal is a strategic f...Continue reading »

ASSESSING BOOK-KEEPING PRACTICES OF SMALL AND MEDIUM SCALE ENTERPRISES IN OGOJA LOCAL GOVERNMENT AREA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 67 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   5090 engagements

ABSTRACT Nigeria’s economy is characterized by a large number of micro enterprises, and in between lie small and medium enterprises (SMEs). The unique feature of most SMEs is that, they can be e...Continue reading »

ASSESSING THE EFFECT OF MATERIAL HANDLING ON THE PROFITABILITY OF A MANUFACTURING COMPANY

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 74 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   7192 engagements

CHAPTER ONE 1.1. Background of the Study Material Management, as practiced in business today, can be defined as “a confederacy of traditional material activities bound by a common idea. The id...Continue reading »

What are you looking for today?

TESTIMONIALS:

  • 1. Jayone from FPA said " I had a wonderful experience using UniProjectMaterials,though they did not deliver the material on time, but the content had good quality. I recommend UniProjectMaterials for any project research work.".
    Rating: Very Good
  • 2. Mugisha R from B.U, UGANDA said "Wow, this is great, your materials has helped me alot. Many blessings. I will inform my friends. Thanks. ".
    Rating: Very Good
  • 3. Nwachukwu Ruth Chinyerr from Michael okpara university of Agriculture,umudike said "I really appreciate this. Materials like this are good guides to writing a researchable project.".
    Rating: Good
  • 4. Ibrahim Salama from Kaduna said "Thanks You So Much Sir We Appreciate ".
    Rating: Excellent
  • 5. Ibrahim Salama from Kaduna said "Thanks You So Much Sir We Appreciate ".
    Rating: Excellent
  • 6. Mohammed A.B from Veterinary Laboratory, Zanzibar ,Tanzania said "You are doing good job to assists in research. God bless you.".
    Rating: Very Good

Paper Information

Format:MS word
Chapter:1-5
Pages:81
Attribute:Questionnaire, Data Analysis,Abstract
Price:₦3,000
Get The Complete Project »

Best Selling Projects

Our Archives