ABSTRACT
With the unprecedented display of interest in the banking business in the wake of structural adjustment programme, the fear of imminent bank failures as a result of anticipated down turn in the fortunes of banks has remained lightened.
This down turn in fortunes of mainly attribute able to one factor that has always assured greatest currency in discussions of problems of banking in Nigeria, that is loan losses.
While the loan loss issue remains unassailable, the argument in most circles is that the loss profile is higher in the government owned or controlled commercial banks than in the privately owned banks.
It is against the background of these lightened developments that this study attempts in examination of the post SAP loss phenomenon and particularly make a comparative study of the private and government controlled commercial banks.
The study which used representative banks is therefore an appropriate attempts to draw some important conclusions backed up with empirical analysis. The study mainly helied on historical approach and was partially descriptive in pinpointing the present problems or issues in lending and loan management. Data was generated from the historical recors as well as the questionnair and analyzed using the statistical tool of t-distribution, chi-square and correlation analysis.
Interesting findings were made from the analysis. On a general note, the problems of diversion, excessive emphasis on security. Greater influence of internal organizational considerations (e.g) Loand policy), Lack of continuity of terme, undue pressures, lack of automated loand information system are inherent. Comparatively, it was found out that the role of loan recovery is not higher in the private banks, the rate of provision for loan losses is higher in the government. Controlled banks; the private banks do not emphasis more on security than their government controlled counterparts, the loan to total assets ratio of government controlled banks is not significantly different from the average of the commercial banking sector.
TABLE OF CONTENT
Cover page
Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of content
CHAPTER ONE
1.0INTRODUCTION
1.1Background of study
1.2Statement of problem
1.3Purpose of study
1.4Significance of the study
1.5Scope of the study
1.6Limitation of the study
1.7Definition of terms
CHAPTER TWO
2.0REVIEW OF RELATED LITERATURE
2.1Definitions of bank
2.2Functions of banks in the economy
2.3Importance of lending
2.4The lending function
2.4.1Principles of lending
2.4.2Securities for bank lending
2.4.3Credit analysis and project evaluation
2.5Loan losses and problems of lending
2.6Need for effective loan management
2.7Solution to the problem of lending
CHAPTER THREE
3.0RESEARCH METHODOLOGY AND DESIGN
3.1Research method
3.2Data collection
3.3Sample selection
3.4Analytical technique
CHAPTER FOUR
4.0DATA PRESENTATION AND ANALYSIS
4.1Data presentation and analysis
4.2Test of hypothesis
CHAPTER FIVE
5.0SUMMARY OF FINDING, CONCLUSION AND RECOMMENDATION
5.1Findings
5.2Conclusion
5.3Recommendation
Bibliography
Appendix: questionnaire