BANK CREDIT FACILITY AND CUSTOMERS’ SATISFACTION IN THE BACKING INDUSTRY
The research work is aimed at determining how effective credit management is with a view to meeting the requirement and satisfaction of the various categories of customers that is to find out whether bank customers are satisfied with the granting of loans and advances and also to examine the regulatory provisions of banks in terms of granting of facilities vis-à-vis customers requirement. The analysis of this work was done using the Z-test under normal distribution method. Primary data were obtained through the use of questionnaire, and personal observations. This enabled us to know the relationship between the bank’s provision of credit facilities and customer’s satisfaction. It was found that the procedure of granting credit facility by banks is a factor that affects the satisfaction of bank customers. It is expedient that management should do away with stringent and unnecessary procedures that dissuade clients from obtaining bank credit.
1.1 Background to the Study
The banking system is a very strong element of the entire edifice of the nation. A bank is simply an institution that provides the minimum banking services and which is licensed by the federal government as a banking institution. Such minimum banking services includes;
(a) Acceptance of deposit from the general public
(b) Making payments to the depositors on demand to the extent of the money available in their accounts
(c) Granting loans and advances to credit-worthy customers
(d) Be involved in the clearing of cheques.
(e) Keeping current account in their books which credits and debits are entered.
The bank credit facility to customers is of two forms which are overdraft and advancesand the maximum benefit derived from this goes a long way to know how satisfied these customers are. One of the important factors for the success of a bank is customers; a bank must try to institute a credit policy that will not discourage a customer from seeking credit facility. It is observed that customers are dissuaded from obtaining credit facilities from banks as a result of stringent and complex procedures in obtaining credit facilities. In most case, loan seekers are not literate enough to cope with the complex procedures and requirements needed in obtaining credit facilities from the bank. The banks are expected to follow a rationalized credit policy based on credit standing of customers and other relevant factors should be put into consideration. Also, banks should evaluate the credit worthiness of existing customers.