Loan Syndication In Banks

(A Case Study Of International Merchant Bank Port – Harcourt)

5 Chapters
|
80 Pages
|
11,677 Words

Loan Syndication In Banks (A Case Study Of International Merchant Bank. IMB)
The effect of a good loan syndication management on the profitability of a bank (IMB) and on the economy of a developing country like Nigeria can not be undermined.
This study is being undertaken to find out how IMB manages its loan syndication. This is because a good loan syndication management would have a significant impact on the profitability of the bank. This study will also examine the pattern and lending practices of International Merchant Bank (IMB), and will also attempt to suggest measures to alleviate problems that will be identified.
International Merchant Bank (IMB) was selected as a result of preliminary survey, which indicates that it is the only bank that is willing to assist in this study. This study, when completed will help in enhancing or improving loan syndication management as well as the profitability of bank as regard to loan syndication and to some extent help in making credit available for project that require large capital.

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The study was undertaken to find out how IMB manages its loan syndication, a proper loan syndication management would have a significant impact on the profitability of the bank, with this view in mind a detailed analysis of IMB loan syndication management was carried out.
IMB was selected as a result of preliminary survey which indicates that it is the only bank that was willing to assist in the study, and from adequate information gathered through the use of structured questionnaires and personal interview administered to the loan syndication offers of the bank.
It found out that IMB has a specialized department that was specifically established to take care of its syndication functions. It was also found that IMB is risk conscious and so estimate the risk of a loss in any syndicated investment. It was also discovered that IMB insist on the provision of collateral as a securits before any proposal is made.
Based on these findings and others it was recommended that IMB should enlarge its syndication activity and seek for new avenues in order to increase its profitability base and generate growth in the economy. Also it should take greater risk in lending, since this will help to increase total investment in the economy because more loan syndication may be granted even if prospective client are unable to provide collateral securities. And IMB should help client prepare realistic feasibility studies. It is also recommended that the time lag between when loan syndication is granted to client should be reduced.

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Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of contents

CHAPTER ONE
1.1 Introduction
1.2 Statement of problem
1.3 Purpose / objective of study
1.4 Research question
1.5 Significant of the research
1.6 Scope of the research

CHAPTER TWO
2.1 Introduction
2.2 What is loan syndication
2.3 Loan syndication in IMB
2.4 Evolution and development of merchant bank
2.5 Syndication theory and management
2.6 Risk as the foundation and concept of loan syndication
2.7 Diversification theory
2.8 Capital Assets pricing model (CPM)
2.9 Asset portfolio in merchant bank
2.10 Risk in merchant bank
2.11 Principles and practice
2.12 Management of lending
2.13 Lending policies
2.14 Factors in loan syndication formulation
2.15 The principle of good loan syndication policy
2.16 Loan syndication Administration.
2.17 Credit Analysis
2.18 Credit Investigation
2.19 Project analysis or evaluation
2.20 Maturity pattern of merchant banks loan syndication and advances in Nigeria.

CHAPTER THREE
3.1 Introduction
3.2 Research Design
3.3 Sample size and population
3.4 Data collection
3.5 Data analysis

CHAPTER FOUR
4.1 Establishment of loan syndication department
4.2 Main function of loan syndication department
4.3 Estimation of risk of loss
4.4 Appraisal of loan syndication proposal
4.5 Securities Favoured by bank
4.6 Documentation of loan syndication terms
4.7 Role of central bank in loan syndication administration

CHAPTER FIVE
5.0 Summary and findings and recommendation
5.1 Summary of findings
5.2 Recommendation

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