CREDIT EXTENSION AND GROWTH IN CUSTOMER SIZE IN THE BANKING SECTOR: A STUDY OF COMMERCIAL BANKS IN JALINGO, TARABA STATE

Authors

  • FORTYFOUR, Murtala Yusuf, Ph.D Taraba State University Jalingo
  • Ephraim Adamu TONGA Taraba State University Jalingo

Abstract

This study broadly investigated the effect credit extension has on the growth in customer size in
the banking sector, selecting commercial banks in Jalingo, Taraba State as study cases. Survey
design was the methodology used for the study and questionnaire was used for primary data
collection. The questionnaire was duly validated and reliably tested. Data was collected from 103
respondents randomly selected from five systematically chosen commercial banks within Jalingo
metropolis. The data were presented using tables, frequencies and percentages while the four
hypotheses from this study were tested via Linear Regression Analysis aided by Statistical
Package for Social Sciences version 23(SPSS, v23). The findings of the study revealed that, bank
advances, medium-term loans, special credits and documentary credits all have significant
positive effects on commercial banks’ growth in customer size. The study thus recommends that,
authorities of banks should remove strict and unnecessary bottlenecks involved in granting credit
facility to customers, competent and sound documentary credit management units should be
established with a sole duty of carrying out credit appraisal, credit disbursement and loan
collection. Also, banks’ credit analysis capacity and administration should strictly follow the
regulatory authority to reduce or remove occurrence of poor loan administration and finally,
government should formulate policies that will ensure that customers are adequately protected
from exploitation by banks in the process of granting them loans

Author Biographies

FORTYFOUR, Murtala Yusuf, Ph.D, Taraba State University Jalingo

Department of Accounting

Senior Lecturer

Ephraim Adamu TONGA, Taraba State University Jalingo

Department of Accounting

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Published

2024-06-06

How to Cite

FORTYFOUR, M. Y., & TONGA, E. A. (2024). CREDIT EXTENSION AND GROWTH IN CUSTOMER SIZE IN THE BANKING SECTOR: A STUDY OF COMMERCIAL BANKS IN JALINGO, TARABA STATE. FUW-International Journal of Management and Social Sciences, 9(2). Retrieved from https://fuw-ijmss.com.ng/index.php/fijmss/article/view/90