StudentShare solutions
Triangle menu

The Effect of Bad Debt Management in Nigerian Banking Industry and Remedies - Dissertation Example

Nobody downloaded yet

Extract of sample
The Effect of Bad Debt Management in Nigerian Banking Industry and Remedies

2. Literature Review 10
2.1 Nigerian Banking Industry and its Role in Economic Growth 10
2.2 Deregulation of the Banking System 12
2.3 Credit Risk and its Management Strategies 13
2.4 Impact of Credit Risk 17
CHAPTER THREE 19
3. Research Methodology 19
3.1 Justification of the Methodology 19
3.2 Research Methodologies 20
3.2.1 Qualitative Methodology 20
3.2.2 Quantitative Methodology 21
3.3 Data Collection 21
3.3.1 Primary Data 22
3.3.2 Secondary Data 23
3.4 Sampling 23
3.5 Reliability and Validity 23
3.6 Ethical Considerations 24
References 25



CHAPTER ONE
1. Introduction
The history of Nigerian banking industry dates back to the year 1892 when the first bank was incorporated by the colonial British Empire (Okezie, Tella, and Akingunola, 2011). The business operation of the Central Bank of Nigeria (CBN) was initiated in the year 1959. The autonomy of CBN was lost to the Federal Government during the period 1968 to 1999. It resulted in Nigeria being surrounded by a loose monetary policy that was implemented by the Federal Government then. In the year 1999, the last of the military regime in Nigeria, gave back the banks legal autonomy in the field of exercising monetary policy and regulatory functions (Central Bank of Nigeria, n.d.). After the independence of Nigeria in 1960 till the beginning of 1980s, the banking industry of the country was mainly dominated by the three banks namely First Bank, Union Bank, and United Bank for Africa. The banking sector was deregulated by the Nigerian government in 1986 which resulted in easement of entry barriers for the new entrantsin the banking industry of Nigeria. As a result of this deregulation, many new banking firms made an entry into the Nigerian banking sector and the number of banks in the country rose to over 100 (Ekpenyong, and Acha, 2011). Many of these new banking firms were poorly managed and weakly capitalised. The regulatory supervision was also quite weak. This resulted in a series of bank failures and turned up to be banking crisis in the year 1990s. At the beginning of 1989, almost 20% of the loan portfolios were adjudged to be non-performing assets. Since the year 2002, the banking industry of Nigeria comprised of 24 commercial banks, 5 development finance institutions, 5 discount houses, 50 class A bureau de change, 598 class B bureau de change, 84 finance companies, 98 primary mortgage institutions, and 914 microfinance institutions (Iwukemjika, n.d.). One of the major concerns for the policy makers is the increasing level of cases of banks in being distress. Hence bad debt forms an important aspect of the banking industry in Nigeria. 1.1 Background of the Study It is a fact that the banking system is considered to be the engine of growth in any economy. It is so because of its function of financial intermediation. With the help of this function the banks are able to increase their performance, facilitate capital formation, and ultimately help in promoting economic growth (Badun, 2009). However, the ability of the banks to foster economic development and growth depends on the stability, health, and soundness of the system. The shareholders fund constitutes only a small portion of the total liability of the banks. This fact undermines the need for a reliable, viable and strong banking system. Hence, not surprisingly, the banking sector is found to be one of the most regulated sectors in an economy. In a modern economy, one can find clear distinctions between deficit and surplus economics units and also in the process of separation of the mechanism related to saving investment. This fact has led to the emergence of financial institutions whose primary responsibility includes ...Show more

Summary

Table of Contents

CHAPTER ONE 4
1. Introduction 4
1.1 Background of the Study 5
1.2 Problem Statement 6
1.3 Aim and Objective of the Study 6
1.4 Significance of the Study 7
1.5 Scope and Limitation of the Study 8
1.6 Definition of Terms 9
CHAPTER TWO 10
Author : dino21
The Effect of Bad Debt Management in Nigerian Banking Industry and Remedies essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the dissertation on your topic
"The Effect of Bad Debt Management in Nigerian Banking Industry and Remedies"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

The research as defined examines M&A of the banking industry in both the US and EU banking industry
The technique to be used is the accounting performance model that would help in the determination of the valuation effects amidst the structural changes in the banks due to the mergers. In supporting the above intentions, the event study methodology shall be applied.
16 pages (4000 words) Dissertation
Indian banking industry
The research study analyses the evolution and how the industry has improved and changed because of IT. Changes in IT have influenced the banking industry of India as it has offered convenience to make transactions. Consumers have also welcomed the changes that have occurred over the period of time as the volume of transaction have increased over the years
18 pages (4500 words) Dissertation
The linkage between corporate social responsibility and risk management to the banking industry: HSBC and Standard Chartered
Although all firms face some market risk, it is possible to mitigate other risks including social and reputation risks by emphasising implementation of CSR initiatives. In the present day and age, global corporations are the subject of scrutiny for their policies and practices across the world.
25 pages (6250 words) Dissertation
Effect of Credit Crunch on Banking Sector in the UK
According to the report finance is the backbone of any economy and banking sector is the indispensible part of the financial segment of the economy. UK banking sector was also badly affected by the recent credit crunch that erupted in the mid 2007. At the initial stage of the report the readers would be introduced with the objectives and the contents.
19 pages (4750 words) Dissertation
How the banking industry has been affected by online banking
According to Kalakota & Whinston (cited in Aladwani, 2001) last few years have witnessed profound technological changes among which is the advent of electronic commerce (IEC) or the exchange of products and payment via telecommunication systems. Internet technology holds the potential to fundamentally change banks and the banking industry allowing the individual banks to easily offer innovative products and access new customers (Sullivan, 2000).
4 pages (1000 words) Dissertation
Credit risk management in commercial banks (First Bank Nigeria Plc)
One of the major reasons behind the global meltdown was the lack of proper finance management practices including a poor credit risk management system by many of the top global financial corporations
26 pages (6500 words) Dissertation
Retaining Foreign Talents in the Dubai Banking Industry
Background of the Study Financial institutions all over the world are experiencing various problems as regards attracting and retaining high quality technical talent. For instance, in India, the banking in the public sector experiences this particular problem due to the implemented salary structures therein (Shroff 2007).
47 pages (11750 words) Dissertation
How does online banking affect the banking industry
bal banking industry, traditional banks faced the problem of handling a large volume of customers and simultaneously to reduce per transaction cost in order to be profitable. Also, with availability of large volume of financial instruments, banks had to introduce various customer-centric products in the market, which increased the number of transactions, and old-model branch banking simply would not be cost effective.
35 pages (8750 words) Dissertation
The linkage between corporate social responsibility and risk management to the banking industry: HSBC and Standard Chartered
Although all firms face some market risk, it is possible to mitigate other risks including social and reputation risks by emphasising implementation of CSR initiatives. In the present day and age, global corporations are the subject of scrutiny for their policies and practices across the world.
10 pages (2500 words) Dissertation
Nigerian Agip Oil Company
According to the paper most of these firms have been operating in Nigeria since the 1960s and have gradually established a strong foothold in the nation.Apart from the private companies, the Nigerian Government has also made a significant contribution towards the development of the country’s oil and gas industry.
49 pages (9250 words) Dissertation
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Click to create a comment
Contact Us