THE IMPACT OF CREDIT MANAGEMENT AND CONTROL ON COMMERCIAL BANKS STABILITY IN NIGERIA (A CASE STUDY OF SKYE BANK PLC, OSOGBO)

ABSTRACT

This research work is based on the impact of credit management and control on commercial bank stability. In fact credit management determines the failure or success of commercial banks in the aspect of lending. This research is purposely carried out to give an insight into the administrative procedures of loans and advances, identifying the causes of bad debts and problems associated with loans. Moreover, in the research methodology judgment sampling was introduced for the selection of the respondents from Sky Bank Plc, Osogbo staffs and customers in order to obtain relevant information for the study. The major finding was that bank does no monitor the customers’ project after parting with the funds adequately and consequently the customer divert the funds to other ventures that are not viable. To this end recommendations are made based on the findings that all banks must put in place effective internal control systems capable of preventing the manipulations o f banks credit policies, business advisory services should be extended to clients in order to reduce their ignorance thereby reducing the incidence of business collapse and the bank should create a forum for meeting with the borrowers.