Credit Risk Management Perception in Nigeria Commercial Banks

Credit Risk Management Perception in Nigeria Commercial Banks.

ABSTRACT

The research was undertaken to evaluate credit risk management Perception in Nigeria commercial banks using First bank of Nigeria Plc and Union bank of Nigeria Plc as a case study.

The work was intended to achieve the following objectives; to examine the causes of credit risks in Nigeria commercial banks. To review the strength of the Commercial banks in combating this menace.

To also ascertain the level of contribution of the central bank of Nigeria in helping the commercial banks mitigate credit risk. Relevant data were collected from both primary and secondary data sources.

Questionnaire was the main primary data collection instrument employed while data from various relevant publications and annual reports constituted the secondary data.

Based on the study, the following conclusions were drawn: There are several causes of credit risk to commercial banks in Nigeria Credit risks do really affect or reduce the operational efficiency of these banks. Employment of strategies in reducing this credit risk is more sophisticated in first bank of Nigeria plc than in union bank of Nigeria plc.

Central bank of Nigeria has over the years been assisting the commercial banks in fighting these credit risks. On the basis of the above findings the following recommendations were made. Commercial banks should employ more strategic means in monitoring credit losses in their banking system.

Commercial banks should assess the workability of each strategy before implementation. Since strategies are costly and may involve heavy capital investment.

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TABLE OF CONTENTS

Cover pager

Title page

Certification Dedication Acknowledgements Abstract

Table of contents

Chapter One: Introduction

• Background of the study
• Statement of problem
• Objectives of the study
• Research questions
• Hypotheses of the study
• Significance of the study
• Profile of the selected commercial banks
• Scope and limitations of the study
• Acronyms/Definition of terms References

Chapter Two: Review of Related Literature

• Introduction
• The changing bank environment
• Bank exposure to risk
• Corporate Governance of commercial banks in Nigeria
• Risk based analysis of banks
• Analytical tools provided
• Justification for banks regulation
• Political Economy of the based accord
• The based accord of 1988
• The based accord base II References

Chapter Three: Research Methodology

• Research design
• Nature and sources of data
• Method of data collection
• Population and sample determination
• Method of data analysis and presentation
• Primary data analysis techniques

Chapter Four: Data Presentation and Analysis

• Introduction
• Data presentation and analysis
• Testing of Hypothesis

Chapter Five:   Summary of findings, Recommendations and Conclusions.

• Summary of Findings
• Recommendations
• Conclusion

Appendix Bibliography

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 INTRODUCTION

The changing environment in which banks finds themselves present major opportunities for banks, but also entails complex, variable risk that challenge traditional approaches to bank management.

Recently, there was increase in non-performing credit portfolios in banks and other financial institutions and these significantly contributed to the financial distress in the banking sector.

Consequently, banks must quickly gain financial risk management capabilities in order to survive in a market oriented environment, withstand competition by foreign banks, and support private sector-led economic growth.

An external evaluation of the capacity of a bank to operate safely and productively in its business through effective credit risk management is normally performed once each year.

All animal assessment is similar in nature, but has slightly different focuses depending on the purpose of the assessment. Risks faced by banks are numerous but this study is essentially concerned with credit risk management in Nigeria commercial banks with First Bank Nigeria Plc and Union Bank Nigeria Plc. as case studies.

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BIBLIOGRAPHY

Adekanye F (1999): The Elements of Banking in Nigeria (3rd edition) F & A publishers, Lagos Basel Accord Committee (1988,1996, 2001)
Central Bank of Nigeria and Nigeria Deposit insurance corporation   (1995):  Distress   in   the   Nigeria Financial Services industry Lagos
Emma et al (2000): Banking Policies and Procedures in Nigeria
Erikson et al (1999): Banking regulation strategies in Nigeria Edison publishers, Enugu.
First Bank of Nigeria Plc (2007): Annual reports and Accounts 2007.
First Bank of Nigeria Plc (2008): Annual reports and Accounts 2008.

StudentsandScholarship Team.