An appraisal of the effectiveness of commercial banks loans and advances management strategies : a case study of some selected banks in Nigeria, (1980-1989)

T.lbte pro b].em .. o:f c:omm:erc:ial b.a.nki-ng; il11 Nig,eria isthe issu:e o:lr t,he in.creasing. uoe1authorised~ 1oans,~ Loan.
defauJrb.s, fraud].en.t pract:ic:es,. ar:ising from Jl?ûGlt acc.oun.ting proc:edures, the hjj_g,h;. risk. exposures an.d th.e r:i.sing,
provi.s:iLon . .t:oJr· bad ara,.d doubtfuJL debts which Ji.eaves mucllli to be des:il.red.. Also,. t.he puoir and i.nef:f.:ii..cïent. managem.en,t stra teg:ii.es of Eoans and Adwanc:es espec:iaJi.ly anrnn.g the medjj_ullili. and sm.al:l-sized barok.s, is worr:iLsom.e ·· and deserves atten.tiol'ill iLf t,he industr;y. must contfu1u.e t.o ex:it.st and fl o urï.slnt... Thro1llig_h. qu.esti.onna:h.re adnnnistrati.om:.,. prirniary data was gath.ered .flor the study .. The secondary data was c:ol].ected :f.rom publis"lnted Annua1 Reports and F:h.na:nc:iaJL Sta'tements o:n. the c.:ase study banks.,. . Usi.ng the ec:onometri.c
tool1:3 0:f simtple and m.ul tipJt.e reg,ressi.on off. selec:ted -variables, the correlatï.on. analysis betweel'.ll. the net earnings and t.he EoaIDiS and Advanc:es variable,. the coat:iLngenc: y table and the dn-squarecli (X2 ) test, we were abJLe to analyse the data collec:ted. on th:li.s stu.d:y. The researc:h came up wi th the fiti,din.gs that., t.he Loans and Advan.ces v.ariab]e :ii.s allll :ii.miportant and signi.füi.can. t :i.tera: :iLn the portfolï.Oi manag_emen.t of c.ommerc:iaJl banks, that there i.s a lTui.gh positive c:orrelat.:i.on between the Loans and Advances. g,rant:ed by commercial balOEks especially the l1:ig_-si.z,ecli ba:nks aID.ld theiLr net earnï.ngs, suggesting_ that they can oeore effec.t.i vel;'t manage thei.r Eoans and