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MANAGEMENT OF BAD DEBTS IN MICRO FINANCE BANKS IN NIGERIA ( A CASE STUDY OF SIX SELECTED MICRO FINANCE BANKS IN ANAMBRA STATE)

Extraxt from literature review

CREDIT AND DEBIT MANAGEMENT
The place of banks in national economy is a significant one, which acts as prime mover of the economic life of any nation. The importance and  significance of banks with respect to economic and social development of a nation cannot be under emphasized. Banks are known to perform many functions of deposits; mobilization and tending which is perhaps to most significant of their functions. Indeed the two prime functions portray banks as the agent who redirects funds from the surplus sector to the deficit sector while earning a comfortable margin surplus sector and then selvey for their services as the intermediaries. Whole deposit mobilization can be categorized as a relatively executing activity. Lending is essentially a logical follow up of deposit mobilization. The banks are responsible for the safety of funds entrusted to them, while also responsible for channeling the funds to the owners. The quality of the banks fund lending decision significantly  determines the banks ability to effectively play the role they have assumed. Apart from the fact that lending is a significant function of the banks. For the above reason, loans and advance have been found to constitute the largest proposition of the banks assets and assets possess the highest rate of return released to the other alternative investment. This is to determine the various techniques of methodologies of credit, the appropriate combination of these techniques so as to achieve success and minimize losses were not in banks credit and lending activities, this basic aim offers the opportunity to bridge the gap between savings and investment in the economy.

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