THE IMPACT OF LIQUIDITY ON CREDITS MANAGEMENTS IN NIGERIAN BANKS
ABSTRACT
Banks generally provide avenues for savings to those who have surplus funds. The bulk of such funds are then lent out to needy personnel and business customers in loans and overdrafts, it has been widely appreciated that more than half of the total gross earnings of banks is earned from interest on loans and advances, which constitute the single most important assetsof the banks. Demands savings and time deposited constitute the major source of banks profitability, it has to be aggression in its lending function. At the same time, it has to be liquid to meets the depositors request and maintain public confidence. It therefore, has to strike a balance between liquidity and profitability. As lending is one of the most intricate services provided by banks, this paper will examine in 8rme details many theories emanating from developed environment and their effect on the operation of banks especially the credit, lending activities. They include the consumer loans theory, and the anticipated income theory. Those theories will thus be evaluated to measure the extents to which they guide the lending activity of the First Bank of Nigeria Plc in a developing environment. This is with a view of highlighting the degree of compliance to these theories by the banks and also proffers solutions and recommendations to resolve the liquidity and profitability position in a developing economy such as Nigeria
Terms of Use: This is an academic paper. Students should NOT copy our materials word to word, as we DO NOT encourage Plagiarism. Only use as a guide in developing your original research work. Thanks.
Disclaimer: All undertaking works, records, and reports posted on this website, eprojectguide.com are the property/copyright of their individual proprietors. They are for research reference/direction purposes and the works are publicly supported. Do not present another person’s work as your own to maintain a strategic distance from counterfeiting its results. Use it as a guide and not duplicate the work in exactly the same words (verbatim). eprojectguide.com is a vault of exploration works simply like academia.edu, researchgate.net, scribd.com, docsity.com, course hero, and numerous different stages where clients transfer works. The paid membership on eprojectguide.com is a method by which the site is kept up to help Open Education. In the event that you see your work posted here, and you need it to be eliminated/credited, it would be ideal if you call us on +2348064699975 or send us a mail along with the web address linked to the work, to eprojectguide@gmail.com. We will answer to and honor each solicitation. Kindly note notification it might take up to 24 – 48 hours to handle your solicitation.