CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
Financial institutions is that sector of the economy providing the community with money balances and payment of bank 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. According to Azeredo (2002) in his journal said financial institutions those organization, that are involved in providing various types of financial services to their customers. The financial institutions are controlled and supervised by the rules and regulations delineated by government authorities. Some of the financial institutions also function as mediators in share market and debt security market. The principal function of the financial institutions is to collect funds from the investors and direct the funds to various financial services providers in search for the funds. According to Thompson (2005. 12). in his book financial institution also impact a wide range of educational programmes to educate their investors on the funds amounts of investment also regarding the valuation of stock, bonds, assets, foreign exchanges and commodities. It happens that some on savings is made available to investors for productive venture like what happened in commercial banks, where this happens a debt is credited.
A debt which has been described as an obligation to make future payment it is against the borrowing promises 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 loosing it entirely the custodian the custodian of the fund managed then well hence debt management become a singanon to guarantee the confidence of the individual depositor the his money is safe. Debt management involves put in place for repayment of those credit fertilities. In the same vein it is fulfill a wider role in save guiding the stability of the individual banks and the banking system as a whole. At this, the researcher will mention that this work is based on the constraint in relation with debt tagged the problem of management in Nigeria. Financial institution (A case study of garden avenue Enugu) recently the bank sector undergo a thematic experience whereby some banks, were judged distressed, thus, however was a direct manifestation of improper debt management. According to B.C. Onyiwa (2006) said that financial institution deals with various financial activities associated with bonds, debentures, stock, loans, risk diversification, insurance, hedging retirement planning, investment, portfolio management and other types of related functions. With the help of their function, the financial institutions transfer money or funds to various tiers of economy and this play a significant role in acting upon the domestic and international economic scenario. 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 credit facilities.
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