CREDIT MANAGEMENT IN THE BANKING INDUSTRY
(A CASE STUDY OF DIAMOND BANK PLC )
ABSTRACT
This researcher work is an attempt to investigation on the Credit Management in the Nigeria Banking Industry.  It is a based on how customer of the Bank expect their bankers to provide them with loans and advances to make up any short fall in their funds requirement for transactional motive.  Again the banks ability to strike a balance between the customers need for and at the same time maintain profitable operations, depends upon a large extent on the credit policy.  And its administration adopted by the bank.  The study is divided in five chapters, its focused on the problems associated with the loans and advances, purpose of the study which is aimed at examine and actually finding out how the banking industry in Nigeria has been fairing in credit management with a view meeting the financial requirements and satisfaction of the various categories of customer like the private and governments sections, definition of terms. Objective of the study and researcher question were used in the research.  Also highlighted a brief introduction of literature review on the origin of bank lending, models and or theories relevant to research questions on a number of constraints in which the lending function has to be performed.  The current literatures based on the variable of the theories and models, hypothesis and research questions based on the variable considered lending.  Summary of the literature review is also highlighted.  The method used in collecting data for the study and analyzing which include primary and secondary data.  The analysis of data gotten from the different methods, which include questionnaire analysis and personal interview used finding were also used.  The researcher used finding which include poor credit assessment counter order by supervisor staff on lending officers which affect their decision and the collaboration of some banks staff with customer to commit fraud on the bank also some recommendation and conclusion were made in order for the bank to thrive better and this will be beneficial to both the owner and the public suggestion for further research also made.
 TABLE OF CONTENTS
CHAPTER 1:  INTRODUCTION
Introduction                                                                                        
Background of the Study                                                                               
Statement of Problems                                                                                    
Purpose of the Study                                                                          
Significance of the study                                                                                
Research Questions                                                                             
Scope of Study                                                                                               
Definitions of Terms                                                                           
CHAPTER 2: REVIEW OF RELATED LITERATURE                      
CHAPTER 3:  RESEARCH METHODOLOGY
Design of the Study                                                                                        
Area of the Study                                                                                           
Population of the Study                                                                                  
Sample of the Study                                                                           
Instrument for Data Collection                                                                       
Validation of the Instrument                                                              
Distribution and Retrieval of Instrument                                           
Method of Data Analysis                                                                   
CHAPTER 4: DATA PRESENTATION AND ANALYSIS
Brief introduction of the Chapter                                                       
Finding                                                                                                            
CHAPTER 5: DISCUSSION OF FINDINGS (RESULTS),
CONCLUSIONS AND RECOMMENDATIONS
Summary of Finding                                                                           
Conclusion                                                                                                      
Recommendation                                                                                            
Limitations of the Study                                                                                 
Suggestions for Further Research                                                       
 CHAPTER ONE
INTRODUCTION
Financial institutions ensure that there is enough stock of money to service the need aspiration of the economy.  They also perform economic function of the transferring money from one area, surplus unit to deficit unit.  Credit management is regarded as a vital instrument in the management of the banking industry especially as it affect the commercial system.
Background of the Study
            Contemporary banks are conceptualized to service as a vehicle for mobilizing resources from surplus unit and channeling some to the deficit units also of government monetary policies in attaining economic advancement in service, the banking sector in modern societies has become one in the economy.
            Illegibly, the sector has services implication on the level and direction of economic growth and by extension, on such sensitive issues as the rate of inflection and employment both of which have impact directly on every one’s life and welfare of the general populace.  They were transformed significantly over the years.  The transmission is mainly manifested in institution growth product development, packaging and regulatory frame work, other development such as banking habits, banking density inadequate skill manpower, poor management etc derived from the major development.  In this work, attention would be focused on this area of the one of the most neglected appears to be management in most counties today (especially in the developing nations of the world including Nigeria).  It could these be solid that inherent problem.  As experienced by banking sector today can be limited to the partial or total project of the principal of good lending by the officer of the bank.
            Impact of Government policy and customer attitude towards the entire spectrums of credit factories.
Statement of the Problems
            It has observed that banks have problems with respect to loan and advances.  It times the loans is erased.
            There is therefore a need to look into the problems related to credit management in financial institution.  This is the crust of the problem.
Purpose of the Study
            This study is aimed at examine and actually finding out how the banking industry in Nigeria has been fairing in credit management with a view in meet up the financial requirements and satisfaction of the various categories of customers like the private and government sectors, other aim include.
1.                  To identify the problem associated credit management in the banking industry.
2.                  To find out the source of strength, with respect to credit management in the banking industry.
3.                  To reinforce their area of strength and offer solution to the problems identification.
Significance of the Study
            The significance of this work includes among others, the gains that occur to the researcher the bank and invariable to their interested parties.
            To the researcher a vase knowledge of effective credit management of bank is gained. The study will enable the to know whether the existing credit management system is in line with recommended credit policy laid down by Central Bank of Nigeria and if necessary corrective measures will taken in other to achieve greater efficiency in near future.  The result from the study the researcher fervently hopes would provide the policy makes and head the organization most especially the boards of director of Diamond Bank Plc. A background of information for proper credit management system in the bank.
Researcher Questions
-                      How long have you been working in the industry banking.
-                      In what capacity were you employed?
-                      Is the principle of lending strictly followed?
-                      Does your bank have adequate credit policy?
-                      Has the policy been strictly followed?
-                      Does the intimacy of the loan seeker to those authorizing loan has any influence on their lending decision?
-                      Does counter order from above tends to have influence on your lending decision.
-                      Do customers have problems of inadequate collateral securities for loan required for?
-                      Has there been any cases of customer diverting the borrowed fund different from what it was intended.
Scope of the Study
            The study is carried out to look into credit management in banking industry using Diamond Bank Plc Okpara Branch as case study.
Definition of Terms
Money:           This can be defined as anything which is generally or legally accepted as means of settling debt.
Credit:            A transaction between two parties in which one (the creditor promise future payment by the other debtors borrower) to sell or lend in the base of future payment.
Facility:          A bank facility is a credit service rendered by a bank.
Industry:        An industry is a group of firm which produces a total amount of a particular goods supplied to the market.
Collateral:      This can pledge as a granted of payment for an obligation or loan.
Management: This can be defined as the process of directing co-oordinating and influencing the organization so as to obtain devised result and enhance total performance.
Commercial Bank: They are financial institution, which accept deposit and other variable from customers for safe keeping as well as granting short-term loan to the customers.