Select Currency
Translate this page

ANALYSIS OF INCIDENCE OF LOAN DEFAULT IN MERCHANT BANK

Format: MS WORD  |  Chapter: 1-5  |  Pages: 74  |  1073 Users found this project useful  |  Price NGN5,000

  DOWNLOAD THE FULL PROJECT

CHAPTER ONE

INTRODUCTION

According to Paget (1998), a renowned banker he defined banks as “a corporation or person (or persons) who accepts money on current account, pays cheques on such account in demand and collects cheques for customers.”Banks are financial institutions that are charged with the responsibility of funds intimidation. They act as a go-between the simples funds sources and deficit fund services. They equally act as “a dealer in capital or more properly a dealer in money as we defined by Gulbert (2015) in performing this function, they engage themselves with deposit acceptance and granting of loans and advances to any needy sector of the economy or individual. Investors and industrialist. The banks are not charcterable organization, hence they render these services with the motive of profit making. The banks in performing this very important duty they are faced with myriad of problems that grows in bounds everyday in consonance with the dynamic nature of Nigerian economy and growth. Their major problem emanated from the fact that those customers to whom the banks lend money on agreed terms and condition default to repay on maturity, thereby putting a wedge on the wheel of both profit making objectives of the banks, credit expansion within the system for economic activities and continual operations of the bank. This granted into bad debts.

In the pre-independence era when few banks dominated the industry, cases of loan default and bad debt were very minimal, of course, the banks management and loan grants were carefully studied before actual disbursement by the expatriates.Today, management of many Merchant Banks are  worried by the trend of incidence of loan defaulters and bad debt been recorded. Still decisive and obvious action have not been taken by them to at least its impact on their operations and the effect on the economy at large which is the purpose of this study to proffer effective suggestions on how to bring under control rate of bad in merchant banks and particularly Ivory Merchant Bank.Financial analysts all over the world agree that bad debt and loan default cannot be completely eliminated in banking industry but a constant check can be kept over every factor capable of generating this ugly experience to most financial and non-financial institutions that engaged in funds intermediation directly or indirectly.  It is note worthy to state here that some merchant banks in Nigeria apparently faced by an increasingly hostile business environment are applying to the Central Bank of Nigeria to convert to commercial banks had applied to C.B.N. as at end of October, 1993. Incidence of loan default in merchant banking, a very important sub-sector leaves nobody any comfort, hence the researcher’s interest in searching the immediate and remote causes of bad debts and how to remedy the ugly experience so that the public confidence could be restored to the financial sector.

1.1    BACKGROUND OF THE STUDY

While reading through journals, weekly financial and business papers, on the rate of increase in number of distress and liquidating banks, the researcher was pulled into imaging that would become of the financial system in the future if dotting is deliberately done to rescue the situation. We are ignorant of the abysmal value of currency” Naria” in the past few years up to date, would you reason out that we cannot build the Nigeria of our dream if this is coupled with constant bank liquidation and failure. Bank lending by way of loans, over draft, financing capital intensive projects by way of loan syndication, trade credit finance all over the world. The process of financial intermediation is assuming complex dimension. As they try the live up to expectation in this regard they (banks) are confronted with unacceptable pill of loan defaults. When granted loans are dues for payment and without it been actually paid, such loans are regarded as being defaulted, hence analysis of the incidence of loan default in Merchant banking.

1.2  STATEMENT OF THE PROBLEM

There is no doubt the difficulties confronting the banking industry today in Nigeria. Every bank is striking to at least keep pace with others. In their daily dealings as conduct pipe for money, whereby they aggregated funds and disaggregate them it the investing public, they are met with hitches of defaults on the part of loans and advances beneficiaries to meet their obligations have serious consequence on the lending banker. Therefore the banks are expected to do something very urgently to address the problems so as to forestall it lending them to distress. The failure to refund money borrowed by customers have big adverse effect on banking operations. Such call for study and investigation, so that the solution could be proffered.

1.3       OBJECTIVE OF THE STUDY

(1)  To identity the causes of loan default

(2)  To identify the level of incidence of loan default and bad debt.

(3) To determine the extent of monitoring by merchant banks of projects for which they extended loans.

(4) To identify the effects of loan of default in merchant banks.

(5) To make recommendations can how loan default and bad debt will be minimized or eliminated.

1.4     RESEARCH QUESTIONS

(1) What are the measures adopted by the bank in preventing loan default occurrence?

(2) What is the level of incidence of loan default to your bank?

(3) How has your been able to monitor its advances granted to customers?

(4)  What do think are the causes of loan default?

1.5  RESEARCH HYPOTHESIS

After thoroughly research, it lies on the research to make the following hypothesis.

Ho: Incidence of loan default in merchant banks is not high.

Hi: Incidence of loan default in merchant banks is high.

Ho:Loan supervision and monitoring are not major solution to loan default in merchant bank.

Hi: Loan supervision and monitoring are major solution to loan default in merchant bank.

Ho:Loan default does not lead to bank failure in merchant bank.

Hi: Loan default leads to bank failure in merchant bank.

1.6  SIGNIFICANCE OF THE STUDY

Based on guiding and recommendations that would be offered at the end of the study, Ivory merchant bank will use it to reassess their credit analysis, loan disbursement and recovery formular. It will also guide the treasury manager on liquidation management to eliminate the bank running into financial distress. It is important to state here that the research findings will be immense help to other financial intermediaries in their daily dealings with both savings fund borrowing public. Implementations of the researcher’s recommendation will restore also confidence of the public on the banking industry.

1.7   SCOPE/LIMITATION OF STUDY

The study is to be based on the contributory impact or incidence of loan default on both expansion and operation of Ivory merchant bank in Nigeria limited. The scope therefore precludes other innovations and products of the bank, such as corporate finance ceasing and investment advisory services, merchant bank loan syndication process. Investigation would be limited to the office of Ivory merchant bank alone. It is important  therefore that further researches should be extended to merchant bankers corporate and investment advisory services to determine their (merchant bankers) role in accelerating industrialization and economic development growth of Nigerian economy.

1.8   DEFINITION OF TERMS

1.Loan: A bank loan may be defined as financial faculty granted by a bank which is in tender to be applied for financing  of a specific purpose an it usually has a defined duration and fixed repayment programme.

2.Loan Default: This could be seen as a situation whereby customers failed to repay the loans they borrowed from the bank.

3.Incidence of Loan Default: This is the rate at which borrowers could not pay back their money occurs in Ivory Merchant Bank.

4.Merchant Bank: A merchant bank is defined by the Banking Amendment all 1979 as “any person in Nigeria, who is engaged in wholesale banking, medium and long term financing, equipment leasing debt factoring, investment management, issue an acceptance of bills and the management of this trust.

5.Ivory merchant bank: This is a branch of merchant bank formed for the purpose of lending in banking industry.

6.Bank Lending: These are basic principle a banker should observed while granting loans and advances to customers.

7.Criterion for Bank Lending: These are basic factors, which a banker should put into consideration before granting loans.

8.Finance System: Nigeria finance system is made up of banking institution and non banking institutions.

  DOWNLOAD THE FULL PROJECT

ANALYSIS OF INCIDENCE OF LOAN DEFAULT IN MERCHANT BANK

Not The Topic You Are Looking For?



For Quick Help Chat with Us Now!

+234 813 292 6373

+233 55 397 8005


HOW TO GET THE COMPLETE PROJECT ON ANALYSIS OF INCIDENCE OF LOAN DEFAULT IN MERCHANT BANK INSTANTLY

  • Click on the Download Button above.
  • Select any option to get the complete project immediately.
  • Chat with Our Instant Help Desk on +234 813 292 6373 for further assistance.
  • All projects on our website are well researched by professionals with high level of professionalism.

Here's what our amazing customers are saying

Abraham Ogbanje
NATIONAL OPEN UNIVERSITY OF NIGERIA
At first I was afraid.. But I discovered they are legit. I will bring more patronize
Very Good
Peace From Unilag
I cried not knowing how to go about my project but the day i searched online and saw iprojectmaster, i called and got my full project in less than 15minutes, i was shocked!
Excellent
Musa From Ahmadu Bello University
Thank you iprojectmaster for saving my life, please keep it up and may God continue to bless you people.
Excellent
Uduak From Uniuyo
IProjectMaster is the best project site for students. Their works are unique and free of plagiarism!
Excellent
Stancy M
Abia State University, Uturu
I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much iprojectmaster, infact, I owe my graduating well today to you guys...
Excellent
Adam Alhassan Yakubu
UDS
Excellent work and delivery , I promise to share my testimonies everyone in need of this kind of work. You're the best
Excellent
Emmanuel Essential
Kogi state University
I actually took the risk,you know first time stuff But i was suprised i received as requested. I love you guys 🌟 🌟 🌟 🌟
Very Good
Gbadamosi Solomon Oluwabunmi
Lasu
Swift delivery within 9 minutes of payment. Thank you project master
Excellent
Samuel From Ajayi Crowther University
You guys just made life easier for students. Thanks alot iprojectmaster.com
Excellent
Abdul Mateen Iddrisu
UDS
At first I taught is a site full of fraudsters until I saw my project in my Gmail after my payment.. THANK YOU IPROJECTMASTER and May God the almighty bless u guys abundantly
Excellent

FREQUENTLY ASKED QUESTIONS

How do I get this complete project on ANALYSIS OF INCIDENCE OF LOAN DEFAULT IN MERCHANT BANK?

Simply click on the Download button above and follow the procedure stated.

I have a fresh topic that is not on your website. How do I go about it?

How fast can I get this complete project on ANALYSIS OF INCIDENCE OF LOAN DEFAULT IN MERCHANT BANK?

Within 15 minutes if you want this exact project topic without adjustment

Is it a complete research project or just materials?

It is a Complete Research Project i.e Chapters 1-5, Abstract, Table of Contents, Full References, Questionnaires / Secondary Data

What if I want to change the case study for ANALYSIS OF INCIDENCE OF LOAN DEFAULT IN MERCHANT BANK, What do i do?

Chat with Our Instant Help Desk Now: +234 813 292 6373 and you will be responded to immediately

How will I get my complete project?

Your Complete Project Material will be sent to your Email Address in Ms Word document format

Can I get my Complete Project through WhatsApp?

Yes! We can send your Complete Research Project to your WhatsApp Number

What if my Project Supervisor made some changes to a topic i picked from your website?

Call Our Instant Help Desk Now: +234 813 292 6373 and you will be responded to immediately

Do you assist students with Assignment and Project Proposal?

Yes! Call Our Instant Help Desk Now: +234 813 292 6373 and you will be responded to immediately

What if i do not have any project topic idea at all?

Smiles! We've Got You Covered. Chat with us on WhatsApp Now to Get Instant Help: +234 813 292 6373

How can i trust this site?

We are well aware of fraudulent activities that have been happening on the internet. It is regrettable, but hopefully declining. However, we wish to reinstate to our esteemed clients that we are genuine and duly registered with the Corporate Affairs Commission as "PRIMEDGE TECHNOLOGY". This site runs on Secure Sockets Layer (SSL), therefore all transactions on this site are HIGHLY secure and safe!