THE IMPACT OF BANK CREDIT ON THE NIGERIAN ECONOMY THE IMPACT OF A CASE STUDY OF UNION BANK PLC, UGHELLI

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1.1 STATEMENT OF RESEARCH PROBLEM
Research work is carried out to investigate into some areas where attention has not been focused or even where there has been work and ideas put forward in its area, but this has been neglected at the end, this work attempts to find out certain problems and try suggesting solution. Some of these problem include the following:
Does the bank lack competent hands to handle the sensitive area of credit control of the bank?
Does the bank actually carry out critical assessment before advancing credit?
Does the intimacy of some loan suckers both the authorities of the banks inhibit proper credit evaluation?
Does the counter-order from superior officers affect the lending banker decision?

1.2 OBJECTIVES OF THE STUDY
Based on the background information, this study therefore aims at examining and actually finding out how the banking industry in Nigeria has been facing in managing credit with a view to meet the financial requirement and satisfaction of the various categories of customers like the private sector, industrial and government department vise-visa, the federal government series of monetary policies and control exercise through the central bank of Nigeria in terms of credit guidelines and sectional allocation of funds. The greater the bank credit is, the greater the stimulus to economic activity provided by monetary policy.
The study also aims at examining the management of credit and man tools at the disposal of the banking industry. Since these are necessary for carrying out a safe and sound practice based on statistical data analysis needed for efficient risk evaluation.

1.3 SCOPE OF STUDY
This work is restricted Union Bank of Nigeria Plc, and no attempt was made to compare finding with what is obtainable in the banks within the same sector or industry, although reference could be made in this regard when the need arises.

1.4 SIGNIFICANCE OF STUDY
The significance of this research work includes among others, the gains occur to the researcher, the bank and invariably to other interest groups. To the researcher, a vast knowledge of effective management of a credit in Bank and financial institutions have been gained.
This project work will enable the bank and other financial institutions to know whether the existing credit management system is in line with the recommended credit policy laid down by the Central Bank of Nigeria and if not necessary corrective measures will be taken in order to achieve greater efficiency in the future.
The result from this study would provide the policy makers, opinion leaders and head of organizations most especially the Board of Directors (BOD) of Union Bank of Nigeria Plc a background information for proper credit management system in the Bank.

1.5 RESEARCH HYPOTHESIS
Hypothesis also mean test of the research. Hypothesis could be defined as statement or assertions which are yet to verification in order to prove their validity or otherwise, such preposition for this work include:
H0: Union Bank of Nigeria Plc has adequate credit policy.

H0: The cannons of lending are not often followed when granting credit facilities to customers.
H0: Some customers have the problem of inadequate collateral securities for loan requested for
H0: Bank customers direct borrowed fund to other purpose different from reason of taking the loan

THE IMPACT OF BANK CREDIT ON THE NIGERIAN ECONOMY THE IMPACT OF A CASE STUDY OF UNION BANK PLC, UGHELLI