SECURITIES PERFECTION AND DEBT RECOVERY IN THE NIGERIAN INDUSTRY (A CASE STUDY OF SKYE BANK PLC NIGERIA)

ABSTRACT

This project is designed to look the effect securities perfection and debt recovery in banking industry in Nigeria, to obtain the relevant result and data were collected through the use of questionnaire and interview in gathering valuable fact for the project. The first two chapters deal with the introduction, statement of problem and literature review while chapter three deal with research methodology and procedure. Then, chapter four deals with data analysis and interpretation of data collected. The last chapter give, summary, recommendation for effective securities perfection and debt recovery in banking industry in Nigeria.

CHAPTER ONE

1.0       INTRODUCTION

Bank plays important roles in the economic life of a country particularly a developing nation through the provision of banking services. As agent of development, they provide loans and advance including a variety of contingent facilities, which could either be short term or long terms. This explains why credit guidelines contained in governments monetary circulars stipulate aggregate causing on credit creation as well as the sectionals avocation which bank   other financial institution must comply with during a fiscal year.

In recent time, banks have witnessed a phenomenal growth in term of loans in their portfolios and the need to finance industrial project in line with the nation’s rapid growth industrialization.

Some of the facilities generally provided by bank included: short term finance, medium term finance, long term finance building / mortgage wars advance against produce etc.

When banks are providing these kinds of facilities and some others, they are exposed to some risks. Lending has some other are exposed of some risks lending has become a vital function inn banking operations because of its direct effect on economic growth and business development.

Though a banker is expected too exercise consideration skill, use his experience techniques in analyzing credit proposal and assessing the risks, it has been established from experience that unforeseen situation sometimes affect the borrowers ability to pay and this has banks to insure themselves in case the unexpected happens by demanding some form security.

Securities and perfection are particularly relevant to our situation in this country. Bad debts simply means loans or facilities granted to a customer but cannot be recouped by the bank from the customer after all efforts it has been intensified.

STATEMENT OF THE STUDY  

In the years past it has been observed that undocumented unperfected loans accounted mainly for the couapsed near couapse of many bank both in Nigeria and abroad (First –bank of Nigeria Bi journal  Vo1.  6 1998 December)

OBJECTIVE OF THE STUDY

             The objectives of this study banks plays important role in the economic life of a country particularly a developing nation through the provision of banking services. As agent of development, they provide loans and advance including a variety of contingent facilities, which could either over be short term or long term.

RESEARCH QUESTION

The research questions of this study were borne out of the huge debts which come about as a result at bank liability to realize the security pledged due to poor credit documentation and perfection. The questions therefore are:

What are the affects of poor credit documentation on bank credits?

What are the types of acceptance securities and documentation procedure for the purpose of lending?

What are the various types of method adopted for debt recovery?

What should bank do when they notice any sign credit becoming doubtful?

STATEMENT OF HYPOTHESIS

The research hypothesis employed for verification is stated below: 

HO There are a lot agitation on the significance of good securities to  and     bank  lending prior to this write –up some bank customers complained  that their bank deprived them from financial assistances in time of need for investment purpose due to their inability to procedure reasonable counteracts not minding their wing standing good record  with them,

In the same vein bank also in them bitter experiences in loan   reconciler argued their position even securities are taken for loan and advances.