Full Project-MANAGEMENT OF BAD DEBTS IN MICRO FINANCE BANKS (MFB)

Click here to Get this Complete Project Chapter 1-5

CHAPTER ONE

INTRODUCTION

BACKGROUND OF STUDY

An attempt will be made in this introductory chapter to give a general outline of bad debts in micro finance banks. Schall and Harley (1987) in Anolve (2001) defines finance as a body  of facts, principals and theories dealing with raising and using funds, it is said to be operating in the area of finance banks and other financial institutions that provides financial services. Both debts can be defined as those debts which are not recoverable. Fit is a credit review which are not recoverable. It is a credit review borrower from a pure lender who may be a formal or informal financial institution against on borrowers promises to make future payments. When a company grants credit to its customers, there are usually a few customers who do not pay. The account of such customers are called bad debts and are at expense of selling on credit. You might ask why do merchants swell on credit if bad debts result? The answer is that they sell on credit in order to increase sale and profit. They are willing to take a reasonable loss from bad debts in order to increase sale and profits. Therefore, bad debts, loses are incurred in order to increase the full or partial recovering is considered doubtful and uncertain. In Nigerian context, there has been increased bad and doubtful trends of debts in the banks, however, banks and their shareholders, government officials and most Nigerians have shown a lot of concern to bad debts. In this country by making pronouncement and insisting on the need to arrest the situation by proclaiming that who ever grants an irrecoverable loan will be made to repay.
The regulatory and supervisory guard lines for Micro Finance Banks in Nigeria (2005) defines Micro Finance Banks(MFB) as any company licenses to carry on the business of providing micro finance services that are needed by the economically active poor, Micro, Small and Medium Enterprises to conduct on expand their business provision of Micro credit is one of the vital function of Micro Finance Banks. Generally, a Micro credit is granted to the operator of the micro enterprises such as peasant farmers, artisans, fishermen, rural women, etc. The definition also apply to credit delivered to the poor. Like in other business to bankers aim is to maximize profit for the interest of the shareholders and unlike in other. The bankers aim to maintain liquidity for interest of the deposit. These two aims cannot follow the same direction when a bank tries to be specifically liquid by investing on at most short term securities which means undertaking loss or lost or risk. At this point, the changes of bad debts occurrence will fall to its lowest minimum.
On the other hand, when bankers try to maintain profitability by investing on its least long term securities which  undertakes more risks, investments certainly will be fortail liquidity because almost all the investments will take not less than one year to be repaid. At this point, the case of bad debt occurrence will rise to higher maximum. When a bank strikes a balance between profitability and liquidity, there is every tendency of this bad debt occurrence. The management of bad debts resulting from commercial banks and advance reflecting on degree of risk associated with lending has necessitated the adoption of this project.
STATEMENT OF PROBLEMS
In 2005, The Federal Government, through policy guard lines established  Micro Finance Banks (MFB) in replacement of community Banks, But most huge amount of money they lose through bad debts. The implication is that there is no more confidence  on some bank customers who have calculated scientific ways of defrauding the banks. Liquidity in banking sector also makes banking unable to meet repayment obligations severe cases, there are introduction of technology insolvency. These situations were brought about by the following among others.
1.   Indiscriminate and unprofessional lending practices.
2.   Poor Management which finances long-term loans assets with short term inabilities.
The problem therefore is to attempt to examine the debt management techniques of the named banks and suggest ways for a healthy and efficient debts portfolio management.
PURPOSE OF STUDY
The purpose of this study is to ascertain the procedure for management of bad debts in Micro Finance Banks (MFB), especially the purpose of the study is to:
1     Ascertain the effective credit and bad debts management on Micro Finance Banks
2     To identify the danger signals on bad debts and doubtful debts in Micro Finance Banks
3     To examine causes of bad debts on Micro Finance Banks
4     To ascertain the implication of huge bad debts on Micro Finance Banks
SIGNIFICANCE OF STUDY
The study will go a long sway in considering bad debts, how it can be managed and come out with good recommendation, which will help in reducing due incidence of bad debts and its effects on. In general, (Micro Finance Banks of Anambra State) The study will provide the following vital reference points.
1.   Bank officials: It will provide them with information on tending policy and how to manage their credit effectively and how they can control their credits effectively and how they can control incidence of bad debts in their institutions.
2.   Student Banking And Finance: The study will definitely provide students with enough material knowledge on debt management.
3.   Banking Public: This study provides the banking public with information on banking public and credit advances.
SCOPE OF STUDY
The scope of this study or research will enter on the investigation with the problem into the debt management with particular reference to micro finance banks in Anambra state. This work is limited to Micro Finance Banks in order to ensure us get authentic information or data as regards the operation of debt management.
RESEARCH QUESTIONS
1.   What are the major goals of credit and bad debts in Nigeria Micro Finance Banks?
2.   What are the danger signals on bad and doubtful debts?
3.   What are the causes of bad debts in Nigerian Micro Finance Banks?
4.   What are the implications of bad debts in Micro Finance Banks?

Get the Complete Project

This is a premium project material and the complete research project plus questionnaires and references can be gotten at an affordable rate of N3,000 for Nigerian clients and $8 for International clients.

Click here to Get this Complete Project Chapter 1-5

You can also check other Research Project here:

1, Accounting Research Project

2. Adult Education
3. Agricultural Science
4. Banking & Finance
5. Biblical Theology & CRS
6. Biblical Theology and CRS
7. Biology Education
8. Business Administration
9. Computer Engineering Project
10. Computer Science 2
11. Criminology Research Project
12. Early Childhood Education
13. Economic Education
14. Education Research Project
15. Educational Administration and Planning Research Project
16. English
17. English Education
18. Entrepreneurship
19. Environmental Sciences Research Project
20. Guidance and Counselling Research Project
21. History Education
22. Human Kinetics and Health Education
23. Management
24. Maritime and Transportation
25. Marketing
26. Marketing Research Project 2
27. Mass Communication
28. Mathematics Education
29. Medical Biochemistry Project
30. Organizational Behaviour
31. Other Projects
32. Political Science
33. Psychology
34. Public Administration
35. Public Health Research Project
36. More Research Project
37. Transportation Management
38. Nursing

Need a Project Writer for a Different Topic

• MSC PROJECT WRITING SERVICES
• MBA RESEARCH PROJECT WRITING SERVICES
• Research Project Writing Services in Lagos Nigeria (Professional Writers) -Law, MSc, MBA,PhD, Dissertations, Thesis, Assignment, Speech
• Masters Research Project Writer in Lagos Nigeria
• MBA Research Project Writer in Lagos Nigeria
• LOOKING FOR A WRITING SERVICES FOR AN URGENT ASSIGNMENTS OR PROJECT WORK
• PROFESSIONAL WRITING SERVICES IN LAGOS NIGERIA (TERM PAPER, SPEECH WRITING, ASSIGNMENT, THESES, DISSERTATIONS, RESEARCH PROPOSAL, PROJECT WRITING SERVICES etc)
• BUSINESS ADMINISTRATION RESEARCH PROJECT WRITER IN LAGOS NIGERIA
• CONSULT A RESEARCH PROJECT WRITER IN LAGOS NIGERIA (PH.D, MBA, MSC, M.ED, BSC)
• MANAGEMENT RESEARCH PROJECT WRITER IN LAGOS NIGERIA
• Education Research Project Writer in Lagos Nigeria
• Environmental Sciences Research Project Writer in Lagos Nigeria
• Guidance and Counselling Research Project Writer in Lagos Nigeria
• Human Kinetics and Health Education Project Writer in Lagos Nigeria
• Early Childhood Education Research Project Writer in Lagos Nigeria
• Christian Religious Studies(CRS) Research Project Writer in Lagos Nigeria
• Educational Administration and Planning Research Project Writer in Lagos Nigeria
• Political Science Research Project Writer in Lagos Nigeria
• Accounting Research Project Writer in Lagos Nigeria
• Economics Research Project Writer in Lagos Nigeria
• Management Research Project Writer in Lagos Nigeria
• Marketing Research Project Writer in Lagos Nigeria
• Public Administration Research Project Writer in Lagos Nigeria
• MBA Research Project Analysts
• In Need of MBA Research Project Writer in Nigeria
• MBA Dissertation Research Project Writer
• MBA Project writer
• EDUCATION DEPARTMENT PROJECT WRITING SERVICES
• BACHELOR OF SCIENCE (BSC) DEGREE PROJECT WRITING SERVICES(B.ED,B.A,B.SC)
• MASTER OF BUSINESS ADMINISTRATION (MBA) RESEARCH PROJECT WRITING SERVICES
• MASTER OF SCIENCE (MSC) RESEARCH PROJECT WRITING SERVICES
• POST GRADUATE RESEARCH PROJECT WRITER
• POST GRADUATE DIPLOMA (PGD) RESEARCH PROJECT WRITER
• MASTER RESEARCH PROJECT WRITER
• MASTER DEGREE RESEARCH PROJECT WRITING SERVICES
• POSTGRADUATE RESEARCH PROJECT WRITING SERVICES
• MASTERS RESEARCH PROJECT WRITING SERVICES
• RESEARCH PROJECT WRITER
• EXPERT IN RESEARCH PROJECT/THESIS/DISSERTATION WRITING SERVICES IN LAGOS NIGERIA
• HIRE A PROFESSIONAL BSC/HND RESEARCH PROJECT WRITER
• HIRE A PROFESSIONAL MBA/MSC RESEARCH PROJECT WRITER
• HIRE A PROFESSIONAL THESIS WRITER IN LAGOS NIGERIA
• SC/M.SC/MBA/PGD RESEARCH PROJECT WRITER IN LAGOS NIGERIA
• Master Degree Research Project Specialist/Writer in Lagos, Nigeria
• Hire A Research Project Writer in Lagos Nigeria
• Research Project Specialist in Lagos, Nigeria

• Education