BANK LENDING AND THE EFFECT OF NON-PERFORMING CREDIT ON THE NIGERIAN ECONOMY

ATTENTION:

BEFORE YOU READ THE ABSTRACT OR CHAPTER ONE OF THE PROJECT TOPICS BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!

INFORMATION:

YOU CAN GET THE COMPLETE PROJECT OF THE TOPIC BELOW. THE FULL PROJECT COST N5,000 ONLY. THE FULL INFORMATION ON HOW TO PAY AND GET THE COMPLETE PROJECT IS AT THE BOTTOM OF THIS PAGE. OR

YOU CAN CALL: 08068231953, 08137701720

WHATSAPP US ON: 08137701720

BANK LENDING AND THE EFFECT OF NON-PERFORMING CREDIT ON THE NIGERIAN ECONOMY

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Just as a healthy financial system promotes economic growth, a weak financial system grappling with non-performing loans (NPLs) and insufficient capital could undermine growth (Schumpeter (1969).

In modelling credit, Zeng (2012) views loans to the economy as boosting total consumption and hence yielding a positive social utility, while NPLs are viewed as a source of financial pollution (Minsky, 1964, 1995; Stiglitz & Weiss, 1981) that negates social utility. Zeng identifies two economic implications of NPLs. Firstly, economic growth could decline if NPLs grow, causing resource allocation inefficiency. Secondly, capital requirements will increase as a result of the growth of NPLs as erosion of capital occurs due to funds being trapped in such entities, making it impossible for the banks to fund new, economically viable ventures. While the definition of non-performing loans (NPLs) is not uniform across countries, in the global financial stability report of the International Monetary Fund (IMF (2004) a general definition encompasses several formulations. A loan is deemed to be non-performing if payments (principal and/or interest) due have not been paid for at least 90 days. The Bank of International Settlement (BIS) five-tier system of classification categorises loans into five grades, namely, pass, special mention, substandard, doubtful and virtually lost, with the last three classified as NPLs. While the first category refers to a healthy loan, there may currently be no outstanding payments on a special mention loan, but a collections problem may be foreseen. However, the term impairment is used

HOW TO RECEIVE PROJECT MATERICAL(S)

After paying the appropriate amount (#5,000) into our bank Account below, send the following information to

08068231953 or 08168759420

(1) Your project topics

(2) Email Address

(3) Payment Name

(4) Teller Number

We will send your material(s) after we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.