Lending and credit administration nowadays are increasingly becoming core functions in bank management. Equally, they now easily dominate regulatory and stakeholder interests in how banks are run to ensure that they remain liquid and strong going concerns at all times. Incidentally, the two banking activities are carried out within a common framework that defines a bank's risk assets portfolio strategies. The framework comprises the crux of the usually three-pronged lending function - depicted as the three pillars of credit risk management: credit analysis (pillar 1); credit policy and control - also referred to as credit administration or credit compliance (pillar 2); and loan workout, remedial and recovery (pillar 3). Credit analysis institutionalizes a process for assessing credit risk well while credit admin enforces credit control and compliance. Loan recovery follows failure of workout and remedial actions on delinquent loans. The approach to, and methodology for, dealing with issues implied in the pillars have witnessed dramatic changes over time. Yet, the goal of credit risk management remains immutable. Its spirit is geared to ensure that bank lending is efficient and that risk assets portfolio is of high quality. The facts that lending generates the largest earning, as well as riskiest, assets of a bank underscore the need to attain the goal. It is imperative, therefore, that students, practitioners and stakeholders - indeed, everyone having borrowing relationship with a bank - is availed a good textbook that elucidates the subject. This edition of "Principles and Practice of Bank Lending" - now jointly authored by Leonard Onyiriuba (sole author of the first edition) and Ochei Ikpefan - fulfills the foregoing need. It comprehensively covers curriculums on bank lending and credit administration - with tutorials on, and solutions to past questions of, the professional examinations of Chartered Institute of Bankers of Nigeria. It will keep the readers abreast of evolving issues, possibilities and risk management demands in bank lending and credit administration overall. The readers will especially find the book useful both as a course text - for students in institutions of higher learning - and as a practical handbook that serves reference needs. It will certainly be indispensable to its target audience and a really good read.
About the Author: Leonard Onyiriuba is a leading author on banking. He ever seeks to proffer solutions to problems that constrain operators and stakeholders in the banking industry. This goal drives his hope to bring about positive changes in the work of bankers that affect the ordinary people. Onyiriuba has written several bestsellers, including "Analysing and Managing Risks in Bank Lending" (2004), "Bank Marketing Challenges, Risks and Control" (2008), "The Banking Companion" (2010), and "Bank Credit Policy, Administration and Remedial Strategies" (2013). With his two recent books, "Emerging Market Bank Lending and Credit Risk Control" (2015) and "Bank Risk Management in Developing Economies" (2016) - published by Elsevier Inc., USA - Onyiriuba is now a well-known and respected voice of banking beyond Africa. He started a career in banking in 1991 after a stint as a university lecturer. As a banker, he was at various times Group Head (Commercial Banking), Regional Director (Commercial Banking, Lagos), and Divisional Director (Corporate Banking) and member of Executive Management at the now-defunct IMB Int'l Bank PLC. Onyiriuba holds BSc (first Class Hons) in Business Administration (marketing option) from Rivers State University of Science and Technology (RSUST), Nigeria (1986) and MBA (finance) (1990) from University of Nigeria, Nsukka (UNN). Ochei Ikpefan is Professor of Banking and Finance at Covenant University, Ota, Nigeria. An accomplished academic, Ikpefan has published over 80 articles in reputable local and international journals. He obtained BSc (Hons) in Business Administration and MBA (Finance) from University of Benin, Nigeria, in 1984 and 1992, respectively - and PhD (Banking and Finance) from Covenant University, Ota, Nigeria. He also holds MSc in Public Sector Management. Professor Ikpefan is External Examiner for some public and private universities in Nigeria - as well as an Assessor of The Chartered Institute of Bankers of Nigeria (CIBN) and Institute of Chartered Accountants of Nigeria (ICAN). He is also a trained banker. He was pioneer Head of Area Office (Benin) Central Clearing House, Head of Special Movement, and treasury and branch inspector at the defunct New Nigeria Bank Limited. He is a Fellow of the Chartered Institute of Bankers of Nigeria (FCIB), Fellow of the Institute of Chartered Accountants of Nigeria (FCA), and Associate Member Chartered Institute of Securities and Investment (ACSI), London.