1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Bad debt can be define as those credit facilities that banks grant to its customers, but for some inherent weaknesses, the full or part thereof can not be recovered due to creditors (banks), but full recovery of such debt is considered impossible. Bad debt can also be looked at as credit granted to the customers of the bank with very slim chance of recovering it.
The reason why this topic is of interest is that most of our banks are in the state of financial distress which is as a result of high degree of “problem loans” or simply bad debts. In addition, there has been as discrepancy between the public expectations and what is actually the liquidity and profitability positions of the high percentage of problem loans to the over all loans granted by these banks. I then consider this project as a plate form to investigate the major causes of bad debts in our commercial banks. The worthiness of this study is based on the fact that it will go a long way in x-raying the major cause(s) of bad debts in our commercial banks. After this/these major cause(s) has/have been revealed, the solution to the problem will no longer be far –fetched. The impact is that both the solvency or liquidity and profitability if these banks shall tremendously improve.
The implication of bad debts on our commercial banks and economy generally can never be positive one. Apart from highlighting these implications, that study will make effective recommendations that when applied, the highlighted implications shall be remedied.
2.0 REVIEW OF RELATED LITERATURE
In order to effectively dictate that causes and implications/ effects of bad debts in Nigeria commercial banks, it is imperative that we adequately review some related studies that were previously carried out by other researchers. Reviewing the writing of recognized authorities in this topic or related ones would also be of help. We shall also discuss relevant theories in this discipline (Banking and Finance) that related to the causes and effects of bad debts in commercial banks.
My intention of reviewing the previous studies is to dictate some left out or to portray new discoveries the previous researcher did not notice.
Disclaimer: Note this academic material is intended as a guide for your academic research work. Do not copy word for word. Note: For Computer or Programming related works, some works might not contain source codes
CITE THIS WORK
(2014, 11). Causes And Implication Of Bad Debt In Nigeria Commercial Banks.. ProjectStoc.com. Retrieved 11, 2014, from https://projectstoc.com/read/5145/causes-and-implication-of-bad-debt-in-nigeria-commercial-banks-3086
"Causes And Implication Of Bad Debt In Nigeria Commercial Banks." ProjectStoc.com. 11 2014. 2014. 11 2014 <https://projectstoc.com/read/5145/causes-and-implication-of-bad-debt-in-nigeria-commercial-banks-3086>.
"Causes And Implication Of Bad Debt In Nigeria Commercial Banks.." ProjectStoc.com. ProjectStoc.com, 11 2014. Web. 11 2014. <https://projectstoc.com/read/5145/causes-and-implication-of-bad-debt-in-nigeria-commercial-banks-3086>.
"Causes And Implication Of Bad Debt In Nigeria Commercial Banks.." ProjectStoc.com. 11, 2014. Accessed 11, 2014. https://projectstoc.com/read/5145/causes-and-implication-of-bad-debt-in-nigeria-commercial-banks-3086.
- Related Works
- The Problems Of Bankings Habits Of The Rural Communities In Nigeria
- The Financial Problems Of Nigerian Bread Industry (a Case Study Of Freedom Bakery Enugu – Ngwo 1995 – 2005.
- Checking Distress In The Nigerian Banking Sector The Role Of Accountants And Auditors (a Case Study Of First Bank Of Nigeria Plc, Awka)
- The Impact Of Foreign Trade On The Nigeria Economy
- Performance Evaluation Of New Products Developed In The Banking Industry 1999 - 2004
- The Problems And Prospects Of Debt Management In Nigerian Finance Institutions
- Introduction Of Islamic Banking Into Nigeria Banking System, Myths, Fears And Perceived Advantages (a Study Of Enugu Metropolis)
- The Value Added Tax And Its Effect On The Economy (a Case Study Of Enugu State)
- Critical Analysis Of Bank Fraud And Malpractice In Nigeria A Comparative Study Of Afribank, Union Bank And Uba Plc.
- Evaluating The Effects Electronic Data Processing In Community Bank. (a Case Study Of Emene Community Bank Enugu State)