ABSTRACT

Bad debts are those debts that can no longer he collected. It is normal business occurrence that some debts will go bad. The amount of such debts (losses) are debited to the profit and loss account and credited to debtors account (Okechukwu, 2003). The functions of deposit money banks in Nigeria include the following; acceptance and safe keeping of deposits, granting loans and advances to customers, money transmission, consultancy services; hut the one that has a great impact on [lie ccononiic development is granting of loans and advances. Bad and doubtful debts have being prevailing features in our banks today due to the high rate of loans and advances. However giving of credit is universal, though in making credit available, deposit money banks are rending a great social service through their actions; 1 I .1 production is increased in recent years, there has been great concern on the management of banks assets and liabilities because of large-scale I financial distress the experience of management indicate that regulation I and supervision are essential for stable and healthy system and that the need becomes greater as the number and variety of institutions increase I the banking sector has being singled out specially because of the vital I role banks play in the economy.