THE PROBLEMS ASSOCIATED WITH LOAN RECOVERY IN NIGERIA COMMERCIAL BANKS. RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
Chapter one portals the problems associated with the Nigeria commercial banks why serves as the introduction of the problems associated with loan recovery and it also gives the historical development of commercial banks in Nigeria.
Chapter two, lays emphasis on the loan, origin and deification and how loan playa vital role in loan lending for the economic development and money creation in our society, both the lender and borrower have a duty to per form, for an efficient and effective lending to be carried out.
The conditions which the commercial banks must undergo before granting out loans to customers was emphasized in chapter. Three of these work. Despite the precautions taken by the commercial banks they still encounter series of problems in loan recovery from their customers. Among them are non-repayment of loan, unwillingness to repay etc.
Loan, recovery problems have an adverse effect on availability of funds, due to the customers unwillingness to repay the being borrowed by them when due (i.e at maturity). These problems have great effects on the commercial banks since one of their functions is granting loan to customers. The effects of the non-repayment of loan by customers will not be emphasized. Though there are some remedies/solution to all these.
In recent years, loan recovery problems have been of the main problems that the Nigerian commercial banks has had to face. Those problems have been main target of policy measures all these years, though at a time it become main focus of policy on which was retarded as more pressing and serious each time. Today the situation in Nigerian have become very serious and seemingly intractable.
The problems of loan recovery in the pigovain sense refers to a situation in which there is a major break down in the repayment agreement resulting in an on due delay in recovery or collection and in which it appears that legal action may be required to effect recovery for in which there appears to be a potential loss. Such a loan there fore requires special attention on the part of the lender if it is to be collected in full within a reasonable period of time after maturity.