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.
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