CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND OF THE STUDY
Bank lending is merely the assessment and evaluation of bankable proposition with the objectives of extending credit facilities on terms and conditions acceptable to both render and borrower. The national behind bank lending is presumable the desire to attain social and economic objective. For the society and profit for banks, over the years, there has been a transition from an era of paper. Profit to an era of doses. In fact, many banks no longer lend some debtors to honour their obligations.
In Nigeria banks have suffered staggering losses nd the questions are, “are we now in the era of bank failures can the banks bounce back in line with the traditional resistance of the overall Nigeria economy”?
Lending is concerned with giving money to another for a period of time on the understanding that it will be returned.
In Toliey Vs Holl (1848) the judge remarked that money wilden paid into a bank cases to be the money of principal, it is the banks money to do with it as it please, to repay to the principal when demanded, a sum equivalent to that paid to him.
This ownership by the bank is however for a specified time. Bank lending is this concerned with provision of fund for needy customer as loans form the savings of the fund surplus units paid into the bank. Due to the established fact that the saved fund is at the disposal of the bank for a specified period, the bank can thus provide these funds to their customers who may have greater use for these funds at the time.
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