DEBT RECOVERY PROCEDURES OF DEPOSIT MONEY BANKS IN NIGERIA. A CASE STUDY OF 3 BANKS
This audit report is a reassurance to management that it is fulfilling its stewardship and accountability roles. It enables the owners of organization for
example, the shareholders of a company to rekindle with competence in management and decide whether or not to explain the scope of their investment in
such organization. Thus, the audit report is a strong indication to investors, guiding them on investment decisions in their lending decisions to creditors and
organizations, where it gives tax authorities an initial confidence in the tax returns filed by organizations. This research work attempts to examine the level of
confidence exhibited by members of the Nigerian society, as well as the implication of such psychological attitude to audit reports. This research will contain
five chapters. Chapter one contains the introductory part, statement of research problem, objectives of the research, its significance, scope, the necessary
hypotheses and constraints. Chapter two will be a detailed evaluation of audit and audit report of financial statements. Chapter three comprises of research
methodologies. Chapter four shows the method of data collection and analysis of the information gathered, while chapter five comprises of findings,
recommendations and conclusion to the topic.
1.1 BACKGROUND OF THE STUDY
A major function of the banking system is the transfer of funds from the surplus units to deficit units of the economy. This is achieved through deposit
mobilization and onward lending to customers by ways of loans and advances.
Most money deposit banks in Nigeria today cannot equivocally declare that they have been untouched by problem of loans certainty; it is a way of life in
these tumultuous times of investing that virtually all investors are faced with problem loans.
Whatever form of lending is adopted by commercial banks in any given situation depends on the purpose of the borrower and the circumstances of the
transaction. The important thing to understand is that regardless of the form investment lending takes, a debt is inevitably created between the bank and customers.
The bank becomes the creditor and customer, the debtor. Review of loan facilities span served stages from the request stage to the repayment and when the facilities get bad.
In this research work, the aim is to outlines the prerequisite for loan, warning signals, management of problem loan as well as debt recovery strategies with
the impact of the credit and debt recovery department towards recovering of such debt.
It appears that the review of a debt recovery structures should be related to review of analytical tools of credit facility towards its restructuring, preparing a
workable game plan or pay out plan. In this project, the subsequent chapters will look at prevention of problem debts and various strategies for recovering credit facilities.