信贷政策对尼日利亚商业银行绩效的影响外文文献翻译.docx

信贷政策对尼日利亚商业银行绩效的影响外文文献翻译.docx

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信贷政策对尼日利亚商业银行绩效的影响外文文献翻译

出处：

AlabiRO.TheImpactofCreditPolicyonthePerformanceofNigerianCommercialBanks[J].InternationalFinanceandBanking,2014,

（2）:

40-56.

原文

TheImpactofCreditPolicyonthePerformanceofNigerianCommercialBanks

AlabiRO

Abstract

Themajorfinancialintermediaryinanyeconomyisthebank.Asfinancialintermediaries,banksprovidemeansbywhichfundscanbetransferredfromthesurplusunitoftheeconomytothedeficitunit.Thisroleisperformedprimarilythroughtheacceptanceofdepositsofdifferentcategoriesandcharacteristicsforonwardlendingtothenumerouscustomersbywayofloansandcredits.ThestudytriestoaccesstheimpactofcreditpolicyontheperformanceofNigerianCommercialBanksusingZenithBankPlcascasestudy.Primarydatawerecollectedthroughquestionnairesservedonsixty（60）respondents（staff:

32andcustomer:

28）ofthebank.Thequestionnaireswereanalysedwiththeuseofchi-square（X2）.Thefindingsfromthestudyshowthathavingagoodcreditpolicyinplacegoesalongwayinminimizingtheincidenceofbaddebts.Itwasalsodiscoveredthatprudentcreditassessmentanddisbursement,dynamiccreditmonitoringanddecisiveactionswhentherearewarningsignals,haveallhelpedthebanktomaintainahighqualityofassetsandahighlevelofprofitability.

Keywords:

Advance,Overdraft,Creditpolicy,Collateral

1.Introduction

Theeconomicdevelopmentofanycountrydependslargelyontheamountofinvestiblefundsavailabletoherandtheefficiencyofherfinancialintermediariestomobilizesuchfundsfromsaverswhohavenoimmediateuseofitanddistributetoinvestorswhoneedfundsforproductivepurposes.Oneofthemajorintermediariessaddledwiththistaskisthebank（Ojoet.al,1982）.

Bankingasaserviceindustryisorganizedtomakeprofitfortheowners,（theshareholders）,throughtheprovisionofbankingservicesandsupplyoffinancialneedsofindividualandcorporatebodies.Asfinancialintermediaries,banksprovidemeansbywhichfundscanbetransferredfromthesurplusunitoftheeconomytothedeficitunit.Thisroleisperformedprimarilythroughtheacceptanceofdepositsofdifferentcategoriesandcharacteristicsforonwardlendingtothenumerouscustomersbywayofloanandadvances.Theyseektomakethemselvesasattractiveasdebtorsandasefficientascreditorsthattheyearnasubstantialgrossincomefromthedifferencebetweentheinteresttheychargeascreditorsandtheinteresttheypayasdebtors.

Inpracticalterm,theessenceoflendingdemandsthat,thelendertemporarilypartswiththepossessionandtheuseofwhatislentwhilstretainingthelegalownershipofit,andduetime,expectstheresumptionofthepossessorandutilityonthepropertylentout.Hencecommercialbanksmanagedepositors’fundswiththehopeofachievingthemajorobjectivesofliquidity,safetyandprofitability.Achievingthisobjective,whilstcreatingcreditsinvolvesalotofrisks,sincetheborrowersmaynotpaybackasexpected.Thiscouldleadtoeventualliquiditycrunchonthelendingbankandtherefore,lossofconfidenceinitbydepositors（Adekanye2010）.

HappeningsintheNigerianbankingindustrypointtothefactthattheeraofdistressmaynotbeoveryet.TheintroductionofUniversalBankinghasbroughtalongwithitanewdimensiontocreditriskexposureduetoenlargedscopeofportfolio,whichcouldspelldoomnotonlyforthefinancialconglomerateinparticularbutforthewholefinancialindustryandthenationaleconomyasawhole.CoupledwiththisaretheincessantcontraventionsofCBNguidelinesbycommercialbank,highcostofinterbankrateandtherecentglobalfinancialcrisesamongothers.

Toguideagainstnegativeconsequencesthatmayariseasaresultoftheabove,banksneedtomapoutclearpoliciesandguidelinesforefficientandeffectivecreditoperations.Hence,thestudytriestoassesscreditpoliciesandmanagementputinplacebyNigerianbankstoseehowadequatetheyareincopingwiththeemergingthreatsintheNigerianbankingindustryandproffersolutionsinordertoforestallanotherroundofdistressinthebankingindustry.

2.TheoreticalFramework

2.1TheConceptofBankLendingandCredit

Lendingcanbedefinedasthecreationandmanagementofriskassets.AccordingtoAgene（1995）,lendingisdefinedasaprocessofanalyzingcreditorloan.Itisconsideredasanimportanttaskofbankmanagementbecauseitentailstakingfinancialriskwhichcouldleadtodifficultyonthepartofthecustomer（borrower）intherepaymentofboththecapitalandinterest.

AccordingtoOsayameh（1986）,theprincipallendingobjectiveofabankistoprovidegrowth,profitabilityandliquidity.Thetermlendingcoversloansandadvances.Lendingfunctionrepresentsasignificantsourceofincomesincethemajorconsiderationofthelenderistherecoveryofboththecapitalandinterest.Itisoneofthemosttraditionalelementsintherelationshipbetweenabankanditsnumerouscustomers（Adekanye,2010）.

2.2FormsofCredit

Creditcanbeclassifiedintothefollowingforms:

i.Overdraft–Anoverdraftisanopenendedcreditfacilitywhichisrepeatedlyuseduntilthebalanceontheaccountreachesacertainpre-arrangedborrowinglimit.Theoretically,itispayableondemandbutinpractice,itmayrunfromyeartoyearwithoutbeingcalledin.itisusedmainlytofinanceworkingcapitalrequirementofrawmaterials,paymentofpressingcurrentliabilitieslikesalaries,creditorsandtaxes.

AccordingtoOnanuga（1998）overdraftcanbeissuedtoovercomedifficultperiodslikepaymentofschoolfees,medicalbills,expensesduringfestivalsetc.Itiscreatedbyallowingtheaccountholdertowithdrawacertainamountinexcessoftheamountstandingtothecreditofhisaccount.Itisshortterminnature,non-specificandnormallymadeavailabletomeetgeneraltradingrequirements.

ii.Advances–Nwanko（1987）definedadvancesasanyfacilityapartfromoverdraftsandloans,grantedtoacustomerforashortperiodoftimebymeansofwhichthecustomerobtainscashorcreditinadvanceofcollectionbythebankofrelativecounterpartfundsfromanotherbank’sthirdparty.Itisashorttermcreditextensionwhichisgrantedforadefiniteperiodusually30and180days.Advancesareusuallygrantedforaspecificpurpose,forexample,paymentofvariouscollections,refinancingofmaturingloans,projectbridgingfinance,refinancingoflettersofcreditforprojectequipmentimportedetc.Theexactmaturitydateofanadvanceisnormallydeterminedattheonsetandthismakesitpossiblefortheprojecttohavealowerinterestchargeontheadvanceduetothereducedrisk.

iii.Loan–AccordingtoAgene（1995）,aloanisregardedasafinancialassistancerenderedbyabanktoitscustomersinmonetarytermandrepayableoveraspecificperiodoftimewithinterestelement.Unlikeoverdraftfacilitywhichisashorttermcredit,loanmaybemediumorlongtermforthefinanceoffixedassetsacquisition.

Loansandadvancesareimportantsourcesofbankrevenueasityieldsthebulkofthebank’srevenue.TheyconstitutethehighestpercentageofthetotalassetsofabankascanbeseenbelowfromanextractofZenithBank’sfinancialstatement.

2.3LoanManagementTechniques

Lendingorcreditcreationseektomaximizeprofitableobjectiveofbank,thishowever,hasanimperativeforliquidityandsolvencyobjective.Theresolutionoftheseissueshasbeenagreatsourceofconcernovertheyearandhasledtothedevelopmentofvariousmethodofmeetingtheobjective.

Someofthemethodsare:

therealbilldoctrine,theshiftabilitytheory,theanticipatedincometheoryandtheliabilitymanagementtheory

（1）Therealbilldoctrine–Thisisalsoknownasthecommercialbilltheory.itwasenunciatedbyADAMSMITHanditpostulatesthatifabankanrestrictitsassetstorealbillofexchange,itwilllimitthequantityofbankliabilitycausedbyvaluingthequantityofbankfundaccordingtotheneedsofbusiness.Thismeanthatthebankassetswillbeofsuchnaturethatcanbeturnedintocashonshortnoticesandthusplacethebankinapositiontomeetunexpectedcallforcash.

（2）Theshiftabilitydoctrine-thisisanextensionofthebilldoctrineitwasdevelopedduringthe19205and1930s.duetothevarietyofbankssecuritiessuitableassecondaryreserveasset,thebankfeltthatthatwiththeavailabilityofshiftableopenmarketfinancialassets,therealbilltheorywillnolongerrestrictthemtoshorttermlendingonly（Adewumi,1984）tomeetcustomerdepositwithdrawalstheshiftabilitytheoryofassetmanagementadvocatesecuritybankholdingofmarketabilitysecuritiessothatrigiditycouldbemetbyshiftingorsellingthesecuritieshelptomotherbuyer.Thetheorypresupposeswelldevelopedsecondarysecuritiesmarket.

（3）Anticipatedincometheory–thisparotidthattheliquidationoftermloanisnotbysaleofassetoftheborrowertheliquidationoftermloanisnotbysaleofassetsoftheborrower.Theliquidationoftermloamisnotbysaleofassetoftheborrowersasinthebilldoctrine,neitherisitbyshiftingofthetermloantosomeotherlenderasintheshiftingabilityoftheoryofliquidationrather,itisthroughtheanticipatedincomeoftheborrower.Theemphasisofthistheoryistheabilityoftheloansograntedtogenerateenoughcashflowfortheliquidationofthefacility.

（4）Liabilitymanagementtheory–withtheemergenceofcommercialdepositsin1961,anewapproachtotheliquidationproblemofloanmanagementdeveloped.Commercialdepositisanalternativemeansofraisingdeposittomeetcustomerdepositwithdrawalsthis,itispossib