The causes of defaults on loans and bad debts

One can not mention the fact that our banks are suffering, without explaining the underlying causes of the problem. Nigeria is known for corruption-free for many years and this identity is not only the integrity of our clothes in countries International. This corruption of one thing to play an important role in the global problem of current knowledge of the Nigerian banks. Of course, all the causes of other strains of corruption himself. This isbipolar phenomenon, ie borrowers who did not feel that the loan with interest at maturity and the repayment to the banks of corruption (Bank managers and managers) who accept the use of the loan, while the deep pockets.

The point is, however, the perception by the public. While some believe it is true that the bankers and prominent icons of the bank robbers in the sum of the masses (savings to be published)others believe that the hidden agenda of the North. Regardless of the position we have is the fact that there are elements of truth in the whole saga. After the corruption as the main cause for the accumulation of non-performance of bank loans identified or identified in Nigeria, later, while others will soon be integrated

i). Corporate misrule

Most institutions, if managed in Nigeria PLC Ltd "or" bad leaders and managers. Most banks have a mountain familyInstitution may therefore decisions are made, are without regard for the consequences. The question that remains Nigeria's borders into question the huge amount of what must be withdrawn from the Bank Treasury (without having to be returned on the due date) and all directors so far peaceful. A large number should not be used without prior notification to the CBN and guaranteed without proper documentation and security. It's great fun!

2). LAXTERMINAL

General and administrative structure of the banks are getting poorer. The reports were carefully designed to show the positions attractive to the public poor. The question is: "If the previous reports for government agencies that do not have these loans?" The management is generally poor.

3. Lack of transparency

The concealment of facts and figures on the agenda in most of these banks were. You just have to publish what the publicneed to know and not know what they want or need to be informed. E 'was the incessant secrecy in the affairs of banks, including government agencies.

4. REGULATION OF THE WEEK

Banking regulations and laws are broad and weakest of them are outdated. In fact, they are not sufficient in general. Century 21 banks in developed countries have been scattered by the bank and we could not stay, just a point and moves at a snail's pace. Although consolidationMany Soludo, there have been changes in the banking sector, but we need to strengthen the regulation and replace obsolete.

5. The practice of banks shady

The shadow banking lending practices with banks the money of investors buy shares of banks is reflected in higher stock prices and loans held gross debt / deficit, Bode is not for our democracy and the development of our nation.