TABLE OF CONTENT
Title page
Certification
Dedication
Acknowledgement
Table of content
CHAPTER ONE
1.0 Introduction
1.1 General Background of the Study
1.2 Objective of the study
1.3 Statement of problem
1.4 Significant/justification of the study
1.5 Research methodology
1.6 Scope of the study
1.7 Planned of the study
1.8 Definition of the study
1.9 General consideration of credit process
1.10 Historical Background of Union bank of Nigeria
CHAPTER TWO
2.0 Literature review
2.1 Operation and credit guidelines scope of union
Nigeria Bank plc banking operation
2.2 Lending procedure in union bank of Nigeria plc
2.3 General reason of credit risk
2.4 Detection of credit risk loan
2.5 Cost of credit risk
2.6 Collection of problem loans
2.7 Supervision of problem loans
2.8 Legal frame work for management of bank credit risk
2.9 Rationale for the prudential guidelines
2.10 Major provision of the guidelines
2.11` Credit portfolio classification
2.12 Provisioning
2.13 Required provision for non-performing credits
2.14 Accurable interest
2.15 Off-balance-sheet
2.16 Some implication of the provision of the
guidelines for bank
2.17 The level of provision
CHAPTER THREE
3.0 Research methodology
3.1 Method of data collection
3.2 Method of data analysis
3.3 Statement of hypothesis
CHAPTER FOUR
4.0 Data analysis
4.1 Ratio analysis
4.2 Analysis of data obtained on correlation co-efficient
of bad debts loan advance
CHAPTER FIVE
5.0 Summary, conclusion and recommendation
5.1 Summary
5.2 Conclusion
5.3 Recommendation
Reference
CHAPTER ONE
1.0 INTRODUCTION
1.1 GENERAL BACKGROUND OF THE STUDY
Bank plays a central role in the economy by providing financial intermediation services. To do this effectively, they must have the capacity to lend and expand the balance sheet, and it must be profitable in doing so, this means that there must be demand for their services and the banks are completive and efficient at meeting this while all this may be seen s self evident we observe that the role of commercial banks change over time. Banks are required to channel the funds generated into profitable economic activities through investors subject to the constraints imposed by the relevant regulatory bodies.
These judiciary responsibilities imposed on the banks three seemingly incompatible.
i. Tasks of satisfying - to ensure the safety of the fund entrusted to it
ii. Profitable - to ensure the safety of the fund entrusted to it
iii. Growth - to earn adequate returns for the owners of the funds into profitable activities.
The extension of credit by banks to borrows involves risk and the ability of the banking industry at fulfilling this role depends to a large extent of the banking industry at fulfilling this role b depends to a large ext6ent on the quality of the lending decision lending has been described as the core function of commercial banks (Robinsons 1962) loans and advances usually constitute the largest asset to banks and interest on these and advances constitute.
The most important sources of income for the banking industry in Nigeria today, the quality of the lending decision of commercial banks leaves much to be desired (Ariyo 1984) with all that has been written on the techniques of lending money.
The difficulties being faced by banks have led them to exercise great caution in extending concisely as loan and advances, due to inability or unwillingness or both for which the beneficially has not persistently compli9ed with the terms and conditions for granting them. Recovery of such loans is unlikely and the central bank o9f Nigeria (CBN) came in through special additional regulation. The central licensed banks in a circular letter No BSD/CO/213/VOL/I/11 of November 7, 1990 it outlined minimum requirement for asset classification disclosure, provisioning treatment of accrued interest and balance sheet engagement it sets out the principle on which provision and write-off are made against problem loans. The problem loan is increasingly disturbing. As at 1974, it was over 4billion Naira, and distressed banks and increased in number also loan and advances are important revenue yielding asserts of a bank. They can however deplete shareholders funds when...================================================================
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