In business transaction, granting of credit facilities is quite universal. It is an acceptable method of financial business transaction and activities. Granting credit facilities to customers is a practice that cannot be avoided as long as business is concerned, to some sensitive sectors of the economy like banking industry, granting of credit and loans constitute their major earning that means, the larger the credit facilities, the fatter the interest receivable at the same time poor assessment and analysis of credit can be devastating. The risk not withstanding, granting of loans and credit facilities enhances economic growth and development of any nation credit provides the lubricant for continuity of transaction regardless of the immediate available cash. The choice of the topic is to evaluate how effective credit analysis can be utilized to ensure survival of the national economy and grow of banking industry. The analysis of credit and loan management practice of Fidelity Bank Plc, my case study is taken through the analysis of retrieved data and personal interview with some management and of the bank.
Credit financing could be seen as back backbones of the economy. This is because one can hardly see any business transaction without the mechanism of credit.
As financial intermediaries, banks have the function of procession, these facilities in form of loans and advances, to the deficit units of the economy to ensure equitable distribution of resources development of the real manufacturing agricultural etc loans and advances are geared to acids industrialization and development especially in an economy like ours, which is characterized by low capital base, inflation, low pre capital income and other unfavourable Economic indications.
Banking lending through the most profitable activity of the bank industry, is the most risky venture that is undertaken by the banks.
Hence, excellence in the field of lending and credit management is excellence in the fields of lending and credit management is essentially through practical experience. The key to successful lending for business is a systematic credit analysis, which deals with the process of investing those factors that give rise to non payment of debts. The efficiency of credit decision shall b all standards depend upon sound judgments of the officer or manager.
Hence to succeed, the lending officer must combine expertise and flexibility in appraisal of individuals application it is against this background that credit analysis and loan management of fidelity bank plc is evaluated to determine it impact in the economic development of the nation.
1.1 BACKGROUND OF THE STUDY
This research work is essential for efficient credit and loan management in the banking industry. This is because of the problems it has created. In the banking industry which has led to non compliance by some banks to the credit guidelines of the Central Bank of Nigeria (CBN). Above all, given global economy these are a need to address the issue.