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

1、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： Alabi R O. The Impact of Credit Policy on the Performance of Nigerian Commercial Banks J. International Finance and Banking, 2014, (2): 40-56.原文The Impact of Credit Policy on the Performance of Nigerian Commercial BanksAlabi R OAbstractThe major financial intermediary in

2、any economy is the bank. As financial intermediaries, banks provide means by which funds can be transferred from the surplus unit of the economy to the deficit unit. This role is performed primarily through the acceptance of deposits of different categories and characteristics for onward lending to

3、the numerous customers by way of loans and credits. The study tries to access the impact of credit policy on the performance of Nigerian Commercial Banks using Zenith Bank Plc as case study. Primary data were collected through questionnaires served on sixty (60) respondents (staff: 32 and customer:

4、28) of the bank. The questionnaires were analysed with the use of chi-square (X 2). The findings from the study show that having a good credit policy in place goes a long way in minimizing the incidence of bad debts. It was also discovered that prudent credit assessment and disbursement, dynamic cre

5、dit monitoring and decisive actions when there are warning signals, have all helped the bank to maintain a high quality of assets and a high level of profitability.Keywords: Advance, Overdraft, Credit policy, Collateral1. IntroductionThe economic development of any country depends largely on the amo

6、unt of investible funds available to her and the efficiency of her financial intermediaries to mobilize such funds from savers who have no immediate use of it and distribute to investors who need funds for productive purposes. One of the major intermediaries saddled with this task is the bank (Ojo e

7、t. al, 1982).Banking as a service industry is organized to make profit for the owners, (the shareholders), through the provision of banking services and supply of financial needs of individual and corporate bodies. As financial intermediaries, banks provide means by which funds can be transferred fr

8、om the surplus unit of the economy to the deficit unit. This role is performed primarily through the acceptance of deposits of different categories and characteristics for onward lending to the numerous customers by way of loan and advances. They seek to make themselves as attractive as debtors and

9、as efficient as creditors that they earn a substantial gross income from the difference between the interest they charge as creditors and the interest they pay as debtors.In practical term, the essence of lending demands that, the lender temporarily parts with the possession and the use of what is l

10、ent whilst retaining the legal ownership of it, and due time, expects the resumption of the possessor and utility on the property lent out. Hence commercial banks manage depositors funds with the hope of achieving the major objectives of liquidity, safety and profitability. Achieving this objective,

11、 whilst creating credits involves a lot of risks, since the borrowers may not pay back as expected. This could lead to eventual liquidity crunch on the lending bank and therefore, loss of confidence in it by depositors (Adekanye 2010).Happenings in the Nigerian banking industry point to the fact tha

12、t the era of distress may not be over yet. The introduction of Universal Banking has brought along with it a new dimension to credit risk exposure due to enlarged scope of portfolio, which could spell doom not only for the financial conglomerate in particular but for the whole financial industry and

13、 the national economy as a whole. Coupled with this are the incessant contraventions of CBN guidelines by commercial bank, high cost of interbank rate and the recent global financial crises among others.To guide against negative consequences that may arise as a result of the above, banks need to map

14、 out clear policies and guidelines for efficient and effective credit operations. Hence, the study tries to assess credit policies and management put in place by Nigerian banks to see how adequate they are in coping with the emerging threats in the Nigerian banking industry and proffer solutions in

15、order to forestall another round of distress in the banking industry.2. Theoretical Framework2.1 The Concept of Bank Lending and Credit Lending can be defined as the creation and management of risk assets. According to Agene (1995), lending is defined as a process of analyzing credit or loan. It is

16、considered as an important task of bank management because it entails taking financial risk which could lead to difficulty on the part of the customer (borrower) in the repayment of both the capital and interest.According to Osayameh (1986), the principal lending objective of a bank is to provide gr

17、owth, profitability and liquidity. The term lending covers loans and advances. Lending function represents a significant source of income since the major consideration of the lender is the recovery of both the capital and interest. It is one of the most traditional elements in the relationship betwe

18、en a bank and its numerous customers (Adekanye, 2010).2.2 Forms of CreditCredit can be classified into the following forms:i. Overdraft An overdraft is an open ended credit facility which is repeatedly used until the balance on the account reaches a certain pre-arranged borrowing limit. Theoreticall

19、y, it is payable on demand but in practice, it may run from year to year without being called in. it is used mainly to finance working capital requirement of raw materials, payment of pressing current liabilities like salaries, creditors and taxes.According to Onanuga (1998) overdraft can be issued

20、to overcome difficult periods like payment of school fees, medical bills, expenses during festivals etc. It is created by allowing the account holder to withdraw a certain amount in excess of the amount standing to the credit of his account. It is short term in nature, non-specific and normally made

21、 available to meet general trading requirements.ii.Advances Nwanko (1987) defined advances as any facility apart from overdrafts and loans, granted to a customer for a short period of time by means of which the customer obtains cash or credit in advance of collection by the bank of relative counterp

22、art funds from another banks third party. It is a short term credit extension which is granted for a definite period usually 30 and 180 days. Advances are usually granted for a specific purpose, for example, payment of various collections, refinancing of maturing loans, project bridging finance, ref

23、inancing of letters of credit for project equipment imported etc. The exact maturity date of an advance is normally determined at the onset and this makes it possible for the project to have a lower interest charge on the advance due to the reduced risk.iii.Loan According to Agene (1995), a loan is

24、regarded as a financial assistance rendered by a bank to its customers in monetary term and repayable over a specific period of time with interest element. Unlike overdraft facility which is a short term credit, loan may be medium or long term for the finance of fixed assets acquisition.Loans and ad

25、vances are important sources of bank revenue as it yields the bulk of the banks revenue. They constitute the highest percentage of the total assets of a bank as can be seen below from an extract of Zenith Banks financial statement.2.3 Loan Management TechniquesLending or credit creation seek to maxi

26、mize profitable objective of bank, this however, has an imperative for liquidity and solvency objective. The resolution of these issues has been a great source of concern over the year and has led to the development of various method of meeting the objective.Some of the methods are: the real bill do

27、ctrine, the shiftability theory, the anticipated income theory and the liability management theory(1) The real bill doctrine This is also known as the commercial bill theory. it was enunciated by ADAM SMITH and it postulates that if a bank an restrict its assets to real bill of exchange, it will lim

28、it the quantity of bank liability caused by valuing the quantity of bank fund according to the needs of business. This mean that the bank assets will be of such nature that can be turned into cash on short notices and thus place the bank in a position to meet unexpected call for cash.(2) The shiftab

29、ility doctrine-this is an extension of the bill doctrine it was developed during the 19205 and 1930s. due to the variety of banks securities suitable as secondary reserve asset, the bank felt that that with the availability of shiftable open market financial assets, the real bill theory will no long

30、er restrict them to short term lending only (Adewumi, 1984) to meet customer deposit withdrawals the shiftability theory of asset management advocate security bank holding of marketability securities so that rigidity could be met by shifting or selling the securities help tom other buyer. The theory

31、 presupposes well developed secondary securities market.(3) Anticipated income theory this parotid that the liquidation of term loan is not by sale of asset of the borrower the liquidation of term loan is not by sale of assets of the borrower. The liquidation of term loam is not by sale of asset of

32、the borrowers as in the bill doctrine, neither is it by shifting of the term loan to some other lender as in the shifting ability of theory of liquidation rather, it is through the anticipated income of the borrower. The emphasis of this theory is the ability of the loan so granted to generate enoug

33、h cash flow for the liquidation of the facility.(4) Liability management theory with the emergence of commercial deposits in 1961, a new approach to the liquidation problem of loan management developed. Commercial deposit is an alternative means of raising deposit to meet customer deposit withdrawals this, it is possib