THE LENDING PROCEDURES AND LOAN RECOVERY IN BANKS

THE LENDING PROCEDURES AND LOAN RECOVERY IN BANKS

ABSTRACT

This topic lending procedures and loan recovery in banks was tailored described. The piece of work looked into bank services and the rules that guide their monetary policies. Research was carried out on ways of improving bank lending policies and good measures on how money could be recovered. Recommendation for further improvement on these policies was described. It vividly described procedure for taking securities for bank lending to these in the financial industry, this piece of work could serve as a reference manual to them. The manual can also educate people on the roles of banking in economic development of Nigeria.

CHAPTER ONE

INTRODUCTION

1.1 STATEMENT OF THE PROBLEM AND PURPOSE OF THE STUDY

The problem of this study is to appraise the lending procedure and loan recovery in banks and their policies with a view of finding the roles of banking in general economic development and characteristic of a good policy and procedure for taking securities for bank lending. It is believed that most loan defaulted goes bad because of the inadequacy of lending procedures and polices in bank. Since it affect their cash flow and impairs their profit ability.

Purpose of the study

The main objective of this study is to known the procedures in lending loans in bank and the securities for bank lending.

Bad debt recovery

When every effort to recover a debt has proved unsuccessful, recovery processes could be done using any of these approached:

Realize the securities

Where the bank is in possible of duly perfected securities which could fetch some money, the bankers night could be enforced. The type of security held will determine the approach to adopt in realizing them. This point under scores the importance attached to realizable securities under the cannons of lending as stated earlier in chapter four. If it is discovered at this critical point that the securities cannot be realized due to defect in perfections, the bank would sadly have lost on purely technical grounds

THE APPRAISAL OF COMMERCIAL BANKS SECTORIAL