Effect of Credit Management in Commercial Bank (a Study of Zenith Bank, Eket)

Student: BLESSING DENIS OKON (Project, 2025)
Department of Accountancy/Accounting
Heritage Polytechnic, Ikot Udota, Akwa Ibom State

Abstract

The purpose of this research is to examine the impact of credit management
on commercial banks. The introduction of the prudential guideline
banking industry, the volume and value of loans and advances has continueр
to increase in bank lending. Obviously this has adverse effect on banks since
it affect their cash flow and impair profitability. Most loans and advances go
bad because of the inadequacy in credit management. The causes are
excessive lending on security values and bad management decision
borrowers. Having analyzed the data, the following findings were made, the
principal objective of bank lending is to generate revenue, the frequent
occurrence of non-performing account was discovered to be as a result
banks inability to put in place an effective process of loan recovery. In
conclusion, the prudential guideline reduced the profitability of commercial
banks and made the banks to classify their loans clearly. In the
recommendation, the researcher suggested that bank should adhered
appoint people who are genuinely qualified to manage their resources and
an effective loan monitoring unit should be set-up in all commercial banks.

Keywords
banks management commercial credit loans lending effect prudential guideline advances
Filters
Institutions