EXAMINATION OF CREDIT MANAGEMENT IN RETAIL BANKING SECTOR OF NIGERIA

Credit management in banking sector is an important issue in the economy of a country. It is important in the scene that success or failure in the management of credit determines the continued existence of any retail bank in the country. It is also important to the economy because the success or failure of any retail banks, that provides retail banking services (which can accept or grant loan as low as W100 to its customers) to the general public will have direct effect on the deposit that is collected from their customers.
Bank is one of the many institutions that perform financial intermediary role in the Nigeria economy. The word "credit can be defined as belief, trust or faith. More elaborately, credit is a means by which people are enable to acquire commodities, such as goods and services, the sales of credit facilities is not the final, because it is expected to be repaid at a future time with interest. There are quite a number of thing which the bank should take into consideration in order to make control and management of credit easy.
Retail bank ability to provide large credit depend on depositor's money, because retail bank are financial intermediary between surplus (depositors) and deficit, sector (Borrowers) of the economy. In order to protect the confidence that depositors have in banks, there is need for the proper management of credit facilities which are disbursed to borrowers to avoid default or delay in repayment of their facilities together with interest.
Where bank fail to perform its duty and subsequently became distressed or liquidated, it is not only the share holder's equity that will be lost, but customer's deposits will also be affected. This is the reason why the federal government, the Central Banks of Nigeria and the Nigerian Deposit Insurance Co-operation (NDIC) did not leave the management on banking activities particularly in the area of credit facilities to the operator in the banking industry alone but also monitor the activities through directive and policies from time to time.
Credit comes in different forms and terms according to customer's need and nature of business. A high light of this is taken from prudential guidelines for licenses bank, credit facilities which include loans advance, overdrafts, commercial papers, bankers' acceptance and guarantee. According to Seyi N. Athem (2014), "the process of optimal credit management therefore, entails the creation and administration of facilities to wards a full and satisfactory repayment within the agreed time frame". Credit management has become a major issue facing lender of today.
The achievement of a hundred percentage repayment of credit facilities with interest within agreed time and condition is more or less an illusion in the banking industry recently. Optimal credit management is therefore one that on credit is risk, that is those granted customers, privates, corporate, and government be it local, state or federal. Optimal credit performance also recognized that credit facilities have to manager with an acceptable balance in the mix-safety, liquidity and possibility requirement. Under such condition, repayment could still be achieved at a slightly longer period without loss of financial; through there may be an acceptance interest, discount or waivers.
1.2   STATEMENT OF PROBLEM
We may have effect of credit management policy on bank performance. A variety of factors can cause the operation of banks to fail to achieve its objectives. In conducting the research, questionnaires, such as these are asked, what are the resultants effect of credit management on bank performance and how has effect of credit management improve in the banking sector.
1.3   OBJECTIVE OF THE STUDY
The task of this study is to examine credit management process carried out by the retail banks.
The following are the objectives of the study.
. To critically examine credit management with a view of finding out loopholes which debtor usually exploit to default or delay in repayment of credit facilities granted to them.
. To highlight the main causes of poor credit management banking sector.
. To state the basic conditions/principles that win faster good credit management in financial institution.
1.4   RESEARCH QUESTIONS AND HYPOTHESIS
There are many area on which question could be raised in credit management. Among these areas are preparation and appraisal of feasibility report, monitoring and control of customer activities after the disbursement of the facilities and which sector of the economy is most convenient or risky to lend. When managing credit to make maximum profit without faulting the liquidity ratio imposed by the Central Bank of Nigeria.
Hypothesis could be described as a conjectural statement which could either be null or alternative that is:
Null hypothesis is represented by Ho; and alternative hypothesis is represented by Hi.
Ho: Customers did not find it difficult to obtain credit from the bank
Hi:  Customers find it difficult to obtain credit from the bank
Ho: Bank manager does not lend money without collateral security.
Hi:  Bank manager lends money without collateral security.
1.5   SIGNIFICANT OF THE STUDY
In recent times, a range of commercial bank have been distressed and same liquidated. The major cause of this problem could be traced to poor credit control and management. To reverse mis trend, this research work is very relevant and should be strictly adhered to also. If any country is to develop economically, socially and in other aspects, there is need for efficient money and capital market. The study will concentrate and focus on the control and recovery of credit granted to bank customers while it maintains its liquidity position.
1.6  LIMITATION OF THE STUDY
Time and resources have been the limitation of the research. This has caused us to limit our finding only to Sky Bank P.L.C, which is believed to the representative enough being a leading retail bank with several branches all over the country.
1.7   DEFINITION OF TERMS
Bank: The bank is a commercial institution which performs various financial   activities   e.g.  Acceptance   and handling of deposit of its customers
Borrowers: A borrower is a person who collects money or asset from the lender (bank) and who enters into legal agreement to repay the principal and interest in future period.
Banking industry: All banks in general, rendering banking service to the public.
Distress: Distress is the inability of the bank to meet the financial demand of its customers.
Industry: This is an enterprise where goods and services are rendered to the public in return for revenue.
Lender: A lender is a person (bank) who gives financial obligation (money) by way of loan or overdraft to the borrower (customer) to enable him fulfils certain aims and objectives relating to    its business or domestic problems.
Liquidity Ratio: Liquidity ratio is the percentage of cash that the bank must hold in liquid form in order to meet the future demands of its customers.
Retail banks: Commercial Banks are otherwise known as the retail banks because they can grant or accept as one hundred naira (N100) to or from their customers.