TABLE OF CONTENTS
PAGE
Title Page – – – – – – – – – i
Certification – – – – – – – – ii
Dedication – – – – – – – – – iii
Acknowledgements – – – – – – – iv
Table of Contents – – – – – – – – v
List of Tables – – – – – – – – viii
Abstract – – – – – – – – – ix
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study – – – – – – 1
1.2 Statement of the Problem – – – – – 3
1.3 Objective of the Study – – – – – 3
1.4 Research Questions – – – – – 4
1.5 Significance of the Study – – – – – 4
1.6 Scope and Limitations of the Study – – – – 5
1.7    Organization of the Study      –       –       –       –       –       5
1.8 Operational Definition of Key Terms – – – – 6
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Introduction – – – – – – – 8
2.2 Concept and Meaning of Debt Management – – – 9
2.3 Bad and Doubtful Debt: Its Causes and Effect on
the Performance of Banks – – – – – 11
2.4 Debt Management Problems – – – – – 13
2.5 Credit Policy Formulation – – – – – 15
2.5.1 Deposit Money Bank Credit – – – – – 18
2.5.2 Cost of Bank Credit – – – – – – 19
2.5.3 Analysis of Customers Credit Application – – – 20
2.5.4 Credit Administration Analysis – – – – – 22
2.6 Classification of Bad and Doubtful Debts – – – 23
2.6.1 Difference between Bad Debt, Doubtful Debts and
the Difference Classes – – – – – – 23
2.7Â Â Â Â Credit Institution –Â Â Â Â Â Â Â –Â Â Â Â Â Â Â –Â Â Â Â Â Â Â –Â Â Â Â Â Â Â –Â Â Â Â Â Â Â –Â Â Â Â Â Â Â –Â Â Â Â Â Â Â 25
2.7.1 Financial Ratio Analysis and it Importance to the
Credit Institution – – – – – – – 25
2.7.2 Uses of Financial Ratio –       –       –       –       –       –       25
2.7.3 Types of Financial Ratio Available to Financial Institutions 26
End Notes
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction – – – – – – – 28
3.1.1 Re-Statement of Research Questions – – – – 28
3.2 Design of the Study – – – – – – 29
3.3 Area of the Study – – – – – – – 29
3.4 Population of the Study – – – – – – 29
3.5 Sample Size and Sampling Technique – – – 29
3.6 Instrument/Method of Data Collection – – – 30
3.7 Data Analysis Techniques – – – – – 31
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Introduction – – – – – – – 32
4.2 Data Presentation, Analysis and Interpretation – – – 32
CHAPTER FIVE
FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Findings – – – – – – – – 39
5.2 Conclusion – – – – – – – – 40
5.3 Recommendations – – – – – – – 40
References
Appendix
ABSTRACT
This research work was undertaken to examine debt management in financial institutions. Due to high percentage of debt in financial institution especially banks, which have distress tendency and low levels of profit it have become very important than ever before to get debtor to pay their debts promptly. However, in most cases, this has proved a difficult task especially in the banking sector where credit facilities are regarded by some debtors as normal function of the banks. However, the major objectives of this study include determining the effect of bad and doubtful debt recovery used to appraise its effectiveness; to assess the validity of a good credit and to assess the measures adopted as remedy for bad debt in financial institutions. To achieve this, non- probability sampling and simple random sample technique was used to analysis data that were collected from primary and secondary sources. After analyzing the data obtained using tables and percentages, findings were made on the issue of debt management in financial institution. This enabled the researcher to draw up conclusions and make possible recommendations. Some of which include that banks should always conduct seminars and training programmes on the subject of debt management in order to bring awareness and changes on matters relating to debt management. And also they should consider the credit worthiness of it customers before giving out loan to them. The bank directors, management and staff should show care and skill on the issue of providing collateral on loan so obtained by the borrowers.
