Financial institutions is that sector of the economy
providing the community with money balances and payment up of banks and sector
of the economy is made up of banks and non-banks financial institutions like
financial house, mortgage house and other institutions that provide financial
services and intermediation to the various segment of the economy.
In modern society,
economic prosperity and progress depend largely on level of savings in the
nation. It happens that some one’s
savings is made available to an investor for productive venture like what
happens in commercial banks. When this happens a debt is created. A debt
which has been described as an obligation to made future payment. It is against
the borrowers promise to made future payment.
As a result of this the owners of these funds faces the risk of not
getting their money in good time or losses it entirely when the custodian of
these funds cannot mange then well hence debt management becomes a sing anon to
guarantee the confidence of the individual depositor that his money is
safe-debt management involves arrangement put in place for repayment of these
In the same vain it also fulfill a wider role in safe
guiding the stability of the individual bank and thus the banking system as a
whole. At this juncture ,the researcher will mention that this work is based on
the constrains in relation with debt tagged the problems of management
inNigeriafinancial institution (A case study of union bankPlc Garden
Recently, the banking sector undergo a traumatic experience
whereby some banks were judged distressed, this however was a direct
manifestation of improper debt management.
1.2 STATEMENT OF PROBLEMS.
The fundamental role banks and non-banks financial
institutions is to intermediate between the surplus deficits sector of the
Ensuring that inventible that will generate new valves at
make the economy grows.
In performing this role, banks are exposed to credits risks,
for instance, the possibility that the borrower will not repay the credit
granted them when it falls due, or even fail
out right to repay paragraph when this possibility becomes a reality a
bank is said to be set with problems of debt loan and other credit facilities
this however has made financial
1.3 OBJECTVES OF THE STUDY
However, union bank Plc is not distressed but market failure
is inevitable given the nature of banking.
As emphasized by (Dale 1984) the financial condition of a bank s not
determine even by analysis with sophisticated techniques at their disposal,
every important, since this problems are man made.
You will agree with me that all banks are faced with
numerous problems in managing to do debt.
The research deemed it timely to do a research on these problems with a
1. Study the
credit administration in UBN with a view to identifying loose ends.
1.4 RESEARCH QUESTIONS
How knowledgeable are you in debt management issues?
To what extent have the effort toward debt recovering
What are the reasons, you may consider responsible for the
way your debtors are responsible to their debt management?
1.5 SIGNIFICANCE OF THE STUDY
The research paper on completion will be of immense
importance to the following sectors of the economy.
1. The Federal
2. Banks and the
other Federal institutions
By this project work, the federal Government will appreciate
the more how threatening bad debts problems loans are to the banks and other
financial institutions. The banking
sector is not a mean sector especially when it is remembered that anything that
affects it will conch revering other sector.
The knowledge of how much financial institution had been suffered under
the weight of heavy loan default will make the federal Government to be more
the federal Government to be more forth coming when suggestions are made on how
to deal with the chronic defaulters especially the state government who engage
in the practice of borrowing with reckless abandon.
General public this work will go a long way to adult the
general public most especially the beneficiaries of credit facilities. The borrowers of funds in these institutions
to appreciate the need to repay these loans as at when due, bearing in mind
that these money borrowed is some one’s also savings. And also the need to involved these loans in
a productive and revenue yielding ventures that will boost growth of the
This work will also serve as a source of data or from the
basis for other researchers who intend to carryout a further research on the
topic. It will help them in the
1.6 SCOPE OF THE STUDY
The subject matter of this research into evaluate the
problems of debt management in Nigeria financial institutions. In doing this particular reference were made
to the union bank PLc Garden Avenue Enugu.
The period examined is from 1992 to date. Nevertheless, references could be made to
other banks just for the purpose of clarity and vivid under 4 stand of the
The researcher considered precedent to limit the researcher
to Eastern zonal offices of union bankPlc Garden AvenueEnugu. This was done for the fact that the bank
co-ordinates the activities of all the other banks branches within the Eastern
region and time would not permit coverage beyond these limit.
Apart from the success made in carryout this stud it must not
fail to disclose the descending attitude of the top management of union bank
The public relation officer and the operation manager who
though welcomed me but cold not go further in giving me any useful information
as regard my project topic because of what they call official top secrecy.
Likewise, respondents from Diamond bank Nigeria Limited,
first bank Plc also felt that supplying certain information competitors, rather
they refer you to their co-operated headquarters atLagosorAbuja.
1.8 DEFINITION OF TERMS
An Investor: person who invest money in a business,
Customers of the
bank who deposits money or but share from the bank.
Debt: Payment which
must be made but has not yet been paid to somebody or institution.
of waste of money or funds.
These are the custodies of funds and those raises
funds for other investment.
Like banks and insurance company’s.
amount of money lent out to customers.