Our Archives

Call 08068929770 or 08122972656 for any enquiries.

Project Topic:

DEBT RECOVERY TECHNIQUES IN THE BANKING SECTORS ISSUES, PROBLEMS AND PROSPECTS (A CASE STUDY OF UNION BANK NIG PLC)

Project Information:

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 54 ::   Attributes: Questionnaire, Data Analysis
::   557 people found this useful

Project Body:

ABSTRACT

 

When some banks in the system are distressed, it is in the best interest of the non distressed one that an effective resolution of the distressed is carried out. This is because, the distress in one bank which leads to a loss of confidence in the effected bank can also affected confidence in the entire banking system, the corporation requires enormous amount of money which it does not have at the moment given the age and size of the insurance find.

Bank customers expect their bankers to provide them with loan and advances to make up the short fall in their required find. The ability of the bank to maintain profitability depends largely on the extent to which the credit policy and debt recovery techniques is maintained.

Credit control department is the center of banks and as such , they are charged with responsibility of making proper use of the share holders finds of the public at large . The union bank of Nigeria PLC has been chosen for this work.. The study is carried out to examine the debt recovery techniques employed by union bank of Nigeria PLC towards the effective running of the bank as lending attitude and preferring solution as deemed appropriate. The case study method was adopted in carrying out the work and debt were collected from secondary and primary source. Secondary sources information include the use of existing literary coupled with use of some journals and other unpublished manuals were seen to be useful for this work.

     Chapter one highlights one the statement of the researches problem, definition of some important terms used for the study, scope, limitation and hypothesis.

      Chapter two dealt with relate iterative. It focuses on conceptual and theorelocal bed rock upon which bank recovery techniques is built

        Chapter three and four dealt on data collection which includes questionnaire analysis, personal interview, analysis as well as testing hypothesis based on response to the questionnaire

        Chapter five is the findings, conclusion and recommendation of the researcher.

 

 

CHAPTER ONE

 

  1.       INTRODUCTION

 

       Actually, for every successful business, there must be a debt in the sense that one person or customer must own the owner of a business. Banks are not exempted from this, this due to the activities involved in their operations.

     Debts can be accrued as a result of bank over draft, frond and forgeries, borrowing and so on therefore banks recover these debts through the rules and regulations guiding the institution. The lender will explore all the available sources of repayment of the debt. The process of recovery is the cove of the management of bad debt as it is quite an unfriendly exercise carried out by the bank against a default customers to forcefully retrieve the banks money, in recovery of debt, there must be consideration of the security position of the bank, borrowers , ability to pay bank the use of debt collections recover by legal preceding and so on .

               Debt recovery can be described as responsible for the effective and economic planning and regulation of operations of an enterprise in fulfillment of a given purpose or task.

Failed bank recovery debt and financial malpractices defined debt recovery as a means of any loan, advances, credit, accommodation guarantees, or any other facility, together with the interest there on which outstanding and unpaid against a customers of a bank in favour of the bank.

In recovery of debt from the borrower or customers banks do encounter problem between the customers for inability to pay. Besides, improper documentation, credit concentration, poor supervision of the funds can or may consequently make the bank to be unable to meet its obligation.

 

1.1 BACKGROUND OF THE STUDY

The importance of banking in economic system singles out the industry for much heavier regulations than any other. Unlike many other economic activities, banking industry involves with statutory activities that governs it practice and it is constituted by laws. The current distress in banking sector has been widely acknowledge arising primary form non performing loans which have been traced to a number of factors such as poor management, loan policy concentration of credit, credit information emphasizes on income growth and unsound judgment, found and forgeries e.t.c.

Therefore, the federal government set up the Nigeria deposit insurance corporation (NDIC) to protect the customers which would have resulted to a problem towards their operation. The Nigeria deposit insurance corporation (NDIC) was establish by decree No 22 of 1988, the banking system has been singled out for this special protection because of the vital role bank play in an economy especially in the process of economic development.

The federal government by decree No 18 of 1994 establishes failed bank (recovery of debt) and financial malpractice tribunal which has the power to recover debt owed to failed bank.

Union Bank Plc formerly known as Barcklays bank was open in Lagos in 1917, the bank first office in Nigeria was located at the old mariner in Lagos other branches were opened in Jos and Port Harcourt.

In 1925, the bank was renamed Barcklays Bank Domino colonial and oversees and it became Barcklays Bank colonial and oversees in 1954.

In 1955, Barckey Bank Domino colonial and oversees was granted licenses in 1960, regional managers were appointed for the administration of the Eastern, Western and Northern Nigeria region. As a result of the development the bank was able to open over 50 additional branches between 1959 and 1970; in 1987 Union Bank of Nigeria has over 200 branches.

In the period of 1979, the performance of the bank was impressive because about 2500 staff voluntary retired under the Union Bank model of early retirement incentive package. The total staff strength has gone done to 8911 from the 1997 figure of almost 12.00

The gross, earning has grown from N13.8 billion which showed an increase of 33% over the 10.4 billion in 1997 profit before and after tax increased from N14billion and N1.2billion in 1997 to N2.1billion and N1.7billion in September 1998 indicating an increase of 38% and 43% respectively.

Total assets increased by 27% from N81billion in 1997 to N1200 billion in 1998 while total deposit stood at N77.2 billion in 1998 representing an increase of 30% over N59.3billion in 1997.

 

 

1.2 STATEMENT OF PROBLEM

Debt recovery in banks play a very important roles in strength and survival of commercial banks  in Nigeria. It has been established that while most debts are declared bad and unrecoverable by banks former boards and management, Officials of Central Bank of Nigeria (CBN) and Nigerian Deposit Insurance Corporation (NDIC) claimed that some of the debtors explained that the banks did not show serious commitment in recovering the debts, and that was why debtors were not keen in repaying.

Moreover, recent happenings has indicated that  a large portion of banks bad debts was incurrent through loans backed by director and top executives of the banks. Debts can be declared bad as a result of

  1. Failure to pay outstanding financial obligations by otherwise financially “hearty” borrowers. This could be the result of fall in expectations, frustration of goals by unforeseen circumstances, faulty investment decisions or strategies, unexpected adverse policies.
  2. Failure to pay by a borrower that is not in business or is otherwise insolvent.

 

1.3 OBJECTIVES OF THE STUDY 

(1) To identify debt recovery techniques in banking sector

(2) To indicate debts recovery techniques employed by banks

(3) To find out the problem of debts recovery in the banking sector

(4) To identify the prospect of debts recovery in the banking sector

(5) To find the recommendation and the improvement of debt recovery in the banking sector.

(6) The finding of prospect to re-structure the Nigeria banking sector.

 

1.4 SIGNIFICANCES OF THE STUDY

Is the current distress in the banking system as previous discussed, which calls for concerted effect of debt recovery in the banking industry.

The result of the study will help restore back loan advance portfolio. Ensure good banking system, ensure that loan and C.B.N creditor guideline is adhered to. The result of this study will provide means how fund borrowed by customers can be monitor to ensure that the funds are not diverted for other purpose.

 

 

1.5 LIMITATION OF THE STUDY

This is about the banking sector and its placed on the work of Nigeria deposit corporation (NDIC) which report with the case study of union bank plc.

The bank managers, staff and customer was interviewed to seek their opinion of ways debts recovery to other banks or financial institution.

Then, the identification problem would be those encountered during the depts recovery of debts and financial malpractice decree in bank will help looked to cover the scope of this work properly to certain problem and limitation encountered which also figure out major problems in the negative attitude of some staff and customers towards realizing useful information necessary for research. So before drawing my conclusion, I will state categoritically that the time period carried out for this study was duely a major limiting factor.

 

DEFINITION OF TERMS

Bad debt: Is described as bad debt which do not just emerge from the blues the usually reflect a logician metamorphrases from a doubtful stage before declared bad.

BANKING:

Section 61 of the bank and other financial institution decree No 25 of 1991 (BOFID) define banking business as the business of receiving deposits on current accounts saving accounts or owner similar accounts, paying or collecting cheque finance or such other business as governor may be published in the gazette, designate as banking business.

FINANCIAL DISTRESS:

E.C.Agene (92) define financial distress as a condition when the bank system as a whole has negative capital and current profit are insufficient to cover losses to such an extent that the banking sector is unable to generate internally positive capital for debt recovery as a means through techniques to bring problem or prospect to the banking sector.

1.6 REFERENCES TO THE STUDY

Van Hon James C. (1980) financial management and policy practice Hall Inc

Enllowed CLIRR Edition.

Nigeria deposit (1995) insurance corporation annual report and statement of account

Failed bank (1994), Recovery of debts and financial malpractices in bank.

Holy land C. (1994) the role of the continuation.

Bank anolified problem and prospect retail banker international.

Decree (1993) the press in promoting Nigeria at seminar on safely and soundness of Nigeria Banking system Abuja.

Project Department:

MORE ACCOUNTING FREE UNDERGRADUATE PROJECT TOPICS AND RESEARCH MATERIALS


Get The Complete Project »

Instantly Share this Project On Social Media:

CLOSELY RELATED ACCOUNTING FREE UNDERGRADUATE PROJECT TOPICS AND RESEARCH MATERIALS

AN APPRAISAL OF THE IMPLICATION OF ELECTRONIC BANKING IN NIGERIA BANKS (A CASE STUDY OF ACCESS BANK)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 67 ::   Attributes: Secondary data, Data Analysis,Abstract  ::   619 engagements

CHAPTER TWO REVIEW OF RELATED LITERATURE Electronic banking in Nigeria has overtime been viewed by many especially economists as having a lot of implications on the economy of Nigeria and especially...Continue reading »

A CRITICAL ANALYSIS OF THE USE OF FINANCIAL STATEMENTS IN ASSESSING THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIRST BANK NIGERIA)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 75 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   447 engagements

ABSTRACT The study was carried out to analyse how an organization performs making use of the financial statements with First Bank of Nigeria Plc serving as the case study. the study disclosed that th...Continue reading »

AN EVALUATION OF THE PERFORMANCE OF NIGERIAN STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIA ( A CASE STUDY OF NIGERIAN STOCK EXCHANGE)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 78 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   296 engagements

HISTORICAL BACKGROUND OF THE NIGERIA STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIAN. The nigeria stock excahnge denoted by NSE is a government establishment where stocks are traded on a daill...Continue reading »

APPLICATION OF BUDGETS AND BUDGETARY CONTROL MEASURES IN A NON-PROFIT ORGANIZATION: A CASE STUDY OF APOSTOLIC CHURCH, DELTA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 76 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   307 engagements

2.1 CONCEPTUAL FRAMEWORK A budget is can be defined by accountants as “a planned outcome to be generated and for the expenditure to ensure during that period and the capital to be employed to a...Continue reading »

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

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 69 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   291 engagements

ABSTRACT The economy of Nigeria cannot function properly or thrive without the micro, small and medium scale enterprises (SMEs). These small scale enterprises cannot function properly if they are not ...Continue reading »

ASSESSMENT OF ADEQUATE RISK RECOGNITION AND MANAGEMENT IN NIGERIAN INSURANCE COMPANIES (A CASE STUDY OF UNION ASSURANCE COMPANY, UYO)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 86 ::   Attributes: Questionnaire, Data Analysis  ::   258 engagements

THE CONCEPT OF RISK Risk has been the subject of study by different scholars over the years with several meaning and definitions. But the most accepted definitions are that of J.E Banister and P.A Baw...Continue reading »

What are you looking for today?

TESTIMONIALS:

  • 1. Rita Eze from abia state university said "thank you so much for your sincerity; i will tell my friends about you guys.".
    Rating: Very Good
  • 2. JULIET from UNIMAID said "I THANK YOU GUYS FOR BEING HONEST.....I WILL TELL MY FRIENDS ABOUT YOU GUYS. THANKX SO MUCH".
    Rating: Excellent
  • 3. Lilian Terdoo from BSU said "i have nothing to say but thanx for being honest. i appreciate u guys...".
    Rating: Very Good
  • 4. Demien Johnson from UNN said "Uniprojectmaterials is a blessing to researchers. my job was eased up by you guys. your jobs have good quality and was delivered on time to me. Thanks a million times".
    Rating: Very Good
  • 5. Patience from unilag said "i was having difficulties handling my dissertation of 12000 words. until i stumbled on uniprojectmaterials, my work was ready in three days with high quality write up and excellent data analysis, i will tell all my friends about u guys. Mr Donald is a very nice person, he should be in charge of the phone. he attended to me very well. God bless. ".
    Rating: Excellent
  • 6. James Ike from College of Education, Gindiri said "Great delivery. Una dey try wella!!!".
    Rating: Excellent

Paper Information

Format:ms word
Chapter:1-5
Pages:54
Attribute:Questionnaire, Data Analysis
Price:₦3,000
Get The Complete Project »

Best Selling Projects

Our Archives