CHAPTER ONE
1.1 BACKGROUND OF THE STUDY
Lending
is the backbone of banking activities, it generally provides the larger part of
a banks profits. Thus bank have lending policies to establish the direction ad
use of funds from stock holders, depositions and creditors to control the
composition and size of the loan part folio, an to determine the general
circumstance under which it is appropriate to make an advance. The most
important purpose of an empiricist lending policy is to provide guidance for
the lending officers and thereby establish prudence for the lending officer in
credit appraisal so that the risk/reward ratio will be satisfactory and danger
of default minimized.
The
government or monetary authorities externally impose some of these policies either in the form of loans or
regulations while others develop from the nature of then banking system or by
convention of the trade association, which transforms into practice in the
profession.
This
paper will therefore, which standard trust bank is one of them, along these
lines, highlighting the process of credit appraisal security accepted as
collateral within the controvert imposed by other environment variables.
1.2 STATEMENT
OF THE PROBLEMS
Although
lending policies and recovery procedures have been speculated to have important
function as in achieving a good and effective system, but no empirical finding
have studied this phenomena. Based on this gap in knowledge, this study will:
a. Evaluate
the role of customer’s access to bank facilities on its performance.
b. Assess
the influence of loan recovery procedures of banks and their performance.
c. Analyze
the impact of environmentally induced lending methods on their performance.
d. Examine
the role of environmentally induced recovery methods on their performance.
1.3 OBJECTIVE
OF THE STUDY
The
purpose of the present study is:
1. To
determine the role customer’s access to banks play in determining its
performance.
2. To
find out the extent loan recovery procedures influence their performance.
3. To
analyze the role environmentally induced leading methods play their
performance.
4. To
examine the extent environmentally induce recovery methods play on their
performance.
1.4 SCOPE
OF THE STUDY
This
study is delaminated to the First Bank of Nigeria Plc Okpara Avenue Enugu and Standard Trust Bank of Nigeria Plc Avenue Enugu.
1.5 RESEARCH
QUESTION
1. To what
extent are banker’s performance related to customers accessibility to their
facilities.
2. To
what extent are banks performance related to their recovery policies.
3. To
what extent are banks performance related to their environmentally indirect
recovery methods.
4. To
what extent are banks performance related to their environmentally induced
recovery methods.
1.6 RESEARCH
HYPOTHESIS
1. There
will be a significant difference customers access to bank facilities between
the high and low performing bank.
2. There
will be a significant difference in the mode of loan recovery procedures
between the high and how performing.
3. There
will be a significant difference in the rate of environmentally induced method
between the high and low preferring banks.
4. There
will be a significant difference in the rate if banks environmentally induced
recovery methods between the high and the low performing banks.
1.7 SIGNIFICANCE
OF THE STUDY
This
study will be of and there who work in areas of credit assessment and control
in various commercial banks. It is also hopped to be of immense help to the
banking and related financial institutions.
Similarly,
investors, industrialists and other members of the society that may need loans
will also find this work valuable. This is because of the of the social
relevance of this work.
Finally,
this work will be of scientific benefit to scholars in the area of banking and
finance especially on loan management. It will compare results of the present
finding will those found elsewhere, or previously in Nigeria. If findings made in Nigeria are
similar to that of the developed countries, then we may hope for a better
future financial management, conversely, we may have to change our banking
policy. In the same taken, if the finding showed either a change or deviation
in loan management over time, it may have serious implications for the banking
industry in Nigeria.
1.8 DEFINITION OF TERMS
INFLATION: A
persistent vise in the general price level in a nation.
SECURITY: This
something given as guarantee for loan obtained to ensure repayment.
LIMITATION:
Hindrance in any form in carrying out a research.
LEND:
is and act if giving or allowing the use of something temporarily, on the
understanding that it will be returned.
POLICY/POLICIES: plan of
action statement of ideals, e.t.c proposed or adopted by a government
political party, business e.t.c
PERFORMANCE:
Do a piece of work, one is ordered to do.
PROFIT: Amount
of money gained in business especially the differences between the amount earned
and amount spend.
SUITABILITY:
Is something that is right or appropriate for a purpose or an occasion.
PLEDGE: A
thing left with a person to be kept until the giver has done something promised
example paid a debt.
LIEN: Right
to keep somebody’s property until a debt owed in connection with it is paid.
ASSIGNMENT:
Act of giving property or rights to somebody example a deed of assignment.
MORTGAGE: Giving
somebody the legal right to take possession of (property) as a security for
payment of money if money lent.
REFERENCE
EMELE O.O & EMELE, C.J (1995) Fundamental of
Research methodology and statistic in
education and behavioural sciences.
Aba: MAP ltd.
ETUKUDO, A.I (1995) Banking in a turbulent economy: A
conceptual approach. Nigerian journal of management
and social sciences. 2,1,7-11.
ASUZU C.C.N (1996) practice of banking and banking
operation, Awka: J.E publisher, I Edition, pp , 1-7.
Get the Complete Project Material Now!!!
