ABSTRACT
The major energizer of economic and development in Nigeria since independence is the financial industry. The government has been formulating various monetary and fiscal policies commercial banks under the strict supervision of the Central Bank of Nigeria. To be able to pursue these policies towards ensuring methodical, economic, industrial and socio-political development, the need enough fund to support lending to various individual and corporate customers, so when any of the loan facilities granted become bad or doubtful debts for commercial banks are not able to fulfill perfectly this responsibility and this has been the effect of mounting bad debt in book of commercial bank especially with the recent withdrawal of deposits by government department and parastatals. Deposits now are expensive, and the banks need money to back up their lending. This research study is on “effect of bad and doubtful in commercial bank”. The study was carried out through administration of questionnaire on both employees and customers of Unity bank. The aim was to find out the effect and control of bad and doubtful debt in commercial bank. And interview was also conducted the only cheapest source of loanable fund for commercial bank is the amount on their bad and doubtful account, this is shown by the findings effects towards recovering substantial portion of such debt becomes imperative and compelling on the bank. It also shows the slip shot manner with each loan facilities granted, and treated by bank employees and customers alike, additional control of new debts have been identified and recommended for adoption by banks.
TABLE OF CONTENTS
Title page- - - i
Declaration - - - ii
Certification - - - iii
Dedication - - - iv
Acknowledgement - v
Abstract - - - vi
Table of Contents - - vii
CHAPTER ONE
1.0 Introduction - 1
1.1 Historical background of unity bank - 6
1.2 Statement of problem - - 9
1.3 Aims and objectives of the study - - 10
1.4 Hypothesis - - 11
1.5 Significance of the study - - - - - - 11
1.6 Scope of the study - - - - - - - 12
1.7 Definition of terms - - - - - - - 13
CHAPTER TWO
2.0 Literature Review
2.1 Introduction - 15
2.1.1 Concept of Bad and Doubtful Debts - 16
2.1.2 Lending In Commercial Banks - - 26
2.2 Causes of Bad Debts - 37
CHAPTER THREE
3.0 Research Methodology
3.1 Introduction - 40
3.2 Sources and Methods of Data Collection - - -41
3.3 Method of data analysis - 46
3.4 Data analysis techniques - - - 48
CHAPTER FOUR
4.0 Data Presentation, Analysis and Finding
4.1 Sample Size - - 50
4.2 Data presentation - - 50
4.2.1 Analysis of bank employees responses - - - 51
4.2.2 Analysis of bank customer (respondents) - - 64
4.3 Findings - - - 71
CHAPTER FIVE
5.0 Summary, Conclusion and Recommendation
5.1 Summary - 76
5.2 Conclusion - - - 8
5.3 Recommendations - - - 79
Bibliography - - - 82
Appendix I - - - - 84
Appendix II - - - 90
