ABSTRACT

The purpose of this research is to examine the impact of credit management on commercial banks.   The introduction of the prudential guideline in banking industry, the volume and value of loans and advances classified into non-performing account ahs continued to increase in bank lending.  Obviously this has adverse effect on banks since it affects their cash flow and impair profitability.

Most loans and advances go bad because of the inadequacy in credit management and recovery procedure of banks.  Appraisal of lending vis a vis the credit management of banks and the impact of the application of prudential guidelines on credit, form the major objective of this study.  Union bank of Nigeria Plc Okpara Avenue Enugu was used as a case study with a view to highlight the effectiveness, the adequacy or otherwise of the credit management policy of Nigerian commercial banks with a view to finding the causes and consequences of non-performing loans and advances.  The causes are excessive lending on security values and bad management of borrowers.  Having analysed the data, the following findings were made, the principal objective of bank lending is to generate revenue, the loan deposit ratio affects the liquidity position of commercial banks, non- performing account kept on increasing the frequent occurrence of non- performing accounts was discovered to be as result of the banks inability to put in place an effective process of loan recovery, implementation of prudential guidelines by Nigerian commercial banks reflect the real income of banks.  In conclusion, the prudential guidelines reduced the profitability of commercial banks and made banks classify their loans clearly.  In the recommendation, the researcher suggested   that the provisions of the prudential guidelines should be adhered to and an effective loan monitoring unit should be set-up in al commercial banks.

TABLE OF CONTENTS

Title Pagei

Approval pageii

Dedicationiii

Acknowledgementiv

List of Table v

Table of Contentvii

Abstractx

CHAPTER ONE

1.0Introduction1

1.1Background of the Study1

1.2Statement of the Problem6

1.3Purpose of the Study6

1.4Scope of the Study7

1.5Significance of the study7

1.6Hypothesis8

1.7Definition of Terms9

CHAPTER TWO

2.0Review of Related Literature11

2.1The role of commercial Banks in Nigeria Economy11

2.2Causes of Non-performing accounts/ credits13

2.3Techniques though which banks can minimize15

2.4The purpose and importance 

of commercial banks in Nigeria.20

2.5The positive impacts of the prudential guideline 

on Nigeria banking industry and the economy.23

2.6Historical background of union26

CHAPTER THREE

RESEARCH METHODOLOGY29

3.1The Design of the Study29

3.2Population of the Study29

3.3Sample and Sampling Techniques30

3.4Instrument for Data Collection32

3.5Validity Reliability of Instrument33

3.6Method of Data Collection33

3.7Method of Data Analysis35

CHAPTER FOUR

4.0   Data Presentation and Analysis 37

CHAPTER FIVE

DISCUSSION OF RESULTS61

5.1Discussion of Findings61

5.2Recommendation64

5.3Limitation of Study65

5.4Suggestion/ Area for further studies65

5.5Conclusion66

Appendix I67Appendix II68