Evaluation of Barclays Bank Lending Practices and Credit Management

This research project evaluates Barclays Bank's lending practices and credit management. It begins with an introduction outlining the research description, aims, objectives, literature review, methodology, and project structure. The literature review explores the views of various authors on the topic, highlighting issues in credit management and the importance of effective lending practices. The methodology section details the research approach, design, philosophy, sampling, data collection, and ethical considerations. The data collection and analysis chapter presents findings through graphs and discussions, addressing themes such as issues in lending services, the relationship between lending and credit management, and the need for corrective measures. The analysis reveals that many respondents believe Barclays Bank faces issues in these areas, underscoring the importance of sound practices. The project concludes with recommendations and areas for further study, emphasizing the need for improved lending practices and effective credit management to ensure the bank's financial health and customer satisfaction. The project also includes an action plan, which summarizes the findings from the respondents.

RESEARCH PROJECT
“To evaluate bank's lending practices and issues related to credit
management: a study on Barclays Bank”

Table of Contents
CHAPTER 1- INTRODUCTION....................................................................................................1
1.1- Research project description................................................................................................1
1.2- Research aims and objectives..............................................................................................1
1.3- Literature review..................................................................................................................2
1.4- Research Methodology........................................................................................................2
1.5- Structure of the project........................................................................................................3
CHAPTER 2- LITERATURE REVIEW.........................................................................................4
2.1- Introduction..........................................................................................................................4
2.2-..............................................................................................................................................4
CHAPTER 3- RESEARCH METHODOLOGY.............................................................................7
3.1- Methodology, method and techniques.................................................................................7
Research approach......................................................................................................................8
Research design...........................................................................................................................8
Research philosophy...................................................................................................................9
3.2- Sampling..............................................................................................................................9
3.3- Data collection...................................................................................................................10
3.4- Ethical considerations........................................................................................................10
CHAPTER 4- DATA COLLECTION AND ANALYSIS............................................................11
4.1- Data collection...................................................................................................................11
4.2- Data analysis and discussion..............................................................................................14
CHAPTER 5- CONCLUSIONS AND RECOMMENDATIONS.................................................19
5.1- Conclusions........................................................................................................................19
5.2- Recommendations..............................................................................................................20
5.3- Areas for further study.......................................................................................................20
REFERENCES..............................................................................................................................22

CHAPTER 1- INTRODUCTION
1.1- Research project description.
Lending services of the bank is about giving loans to the customer and credit
management is managing various credit activities. Rationale of the research shows the proper
and logical evaluation of the topic or aim. It is found that there are many problems which are
faced by the banking industry. These issues are needed to be solved very effectively because
these can very adversely effect the public. Almost each and every person do some transaction
with the bank. That's why the problems and issues which are faced by this sector affects very
much to people (Waemustafa, W. and Sukri, 2015). Lending practices and credit management is
the burning issue in the banking industry. That's why it is necessary to conduct the research on
this topic. It is done to find out saying of various authors on the research topic. It was provided
by university which has also created an interest among experts. By having an appropriate
learning about the subject the issues can be resolved.
1.2- Research aims and objectives.
Aims
The aim of this research is to find the issues in Barclays Bank's lending services and
credit management.
Objectives
 Conceptual framework of bank's lending services and credit management.
 Issues related to the credit management activities. Relationship between lending services and credit management.
Research questions
 What are the lending services of and credit management activities of the cited bank?
 What are the issues which are faced by the bank in their management of the credit?
 Is there any relation between lending services and credit management of the bank?
This research is with the aim of evaluating bank's lending practices and finding the issues
which are related to the credit management. These two are related with each other. Bad lending
practices will make credit management also non- effective. This research will highlight all the
issues of Barclays Bank in relation with their lending practices and credit management. It is very
important to do this research because there are many people who are related with bank. They can

be adversely affected by the non- effective practices of the cited bank. Practices must be good to
make the effective and healthy relationship with the customers. This is to make sure that all the
customers of the bank must be satisfied (McNeil, Frey and Embrechts, 2015). Credit
management is the activity which manages all the credit facilities given to the public. In this
person takes loan from the bank pays it back with the interest. The objective of credit
management is to keep all the records of persons who had taken the loan and who had paid it
back. Lending practices of the cited bank must be good because it affects the credit management.
Bad practices will make the bank to give loan to the non-efficient person who will not be able to
pay it back. It will disturb the management of credit in Barclays Bank. The main objective of the
research is to find about the conceptual frame work of bank's lending system and credit
management, issues which are related to the credit management and effect of the lending issue
on the credit management. The factor which has contributed in the research project selection is
that, the selected topic is burning issue in the world.
1.3- Literature review.
It is that part of the research which shows about the sayings of the different authors about
the topic. The authors can be in favour or can be against the findings of the research topic.
Different sources are to be studied to write the literature review effectively and efficiently. There
are many sources on which basis this can be written. Those can be books. The content which is
included in the literature review is about the information which is related with the factors which
are affecting the Barclays Bank. It is about analysing the various information which is got by the
different sources (Brown and Moles, 2014). It analyses all the saying of authors regarding the
objective of the research. Literature review is very effective for gaining the information about
topic and what different authors says about that. There are many authors who has kept the view
on this topic. Such as Waemustafa, W. and Sukri, (2015), McNeil, Frey and Embrechts, (2015),
Mengze and Wei, (2015) etc.
On the other hand in the view of author Yadav and Pathak, (2014) issues in the credit
management brings many unfortunate events. This can surely lead to the closure of banks. Not
handling these issues with the efficiency can lead to very hazardous situations. Proper training is
to be given to all the employees who are working in the bank. This will increase their efficiency
and they will effectively do the activities of credit management.

In accordance with the author Banks, (2016) there are many types of loans which the
banks provide to its customers. This service of the banking sector should be handled very
carefully because it can bring issue which will be hard to be coped with. The author says that
these services are the heart of the banks. Many customers are there who are in the need of loan.
Evidences must be gained by the banks to ensure the financial stability of the customers. This
process will make the system of lending services better. The services which are most important
for the bank should be handled with effectiveness and efficiency.
1.4- Research Methodology.
It contains the various methods which can be used for finding the information which will
be supported for the topic. Many findings are given by using the measures of research
methodologies. Proper analysis can be done by this process. It gives the practical and exact
information about what others think about the aims and objectives. It gives to the point
information. It is very much beneficial for the researchers. They can collect all the information
related to the topic effectively and efficiently. It is find about the various lending practices and
credit management. This includes qualitative and quantitative findings. Various methods which
are included in the research methodologies are as follows:
 Research approach- It is about the scientific method which is used for doing the research.
There are two types of approaches (Brooks, 2015). They are inductive and deductive
approach. Inductive approach is that in which new theory is derived in accordance with
the gained information. They are based upon the qualitative research. On the other hand
deductive approaches are that which are based upon the existing theory. They are based
upon the quantitative research.
 Research design- It shows the way in which research can be conducted. The process
which is to be followed is preplanned and it is very helpful in finding the right results.
There are various designs which are formed under this. Those are descriptive and
exploratory. The descriptive design shows the detailed study about the topic. On the other
hand exploratory design shows the various aspects about the objectives of the study.
 Data collection method- This is about the collection of information by using proper and
suitable method in accordance with the aims and objectives of the research. Data can be
collected by the primary or secondary methods of collection. The primary data are

collected by the authentic and by using the present sources. On the other hand secondary
data is the one which is already collected by others.
 Research philosophy- In this research is done on the basis of some pattern. There are 2
types of philosophy which are used, they are interpretivism and positivism (Mengze and
Wei, 2015). In the interpretivism qualitative tools are used. On the other hand in the
positivism quantitative tools are used.
 Data analysis- In this data which are collected are analysed and presented in the proper
way. This can be done by the qualitative and quantitative methods.
 Sampling method- In this method of research methodology sample is taken from the pool
of information to judge about the average correctness of the topic. It helps to decide what
will all the information be about.
1.5 Action Plan
ACTIVITY/WEEK 1 2 3 4 5 6 7 8 9 10 11
Identification of research topic
Topic is selected after
discussing with tutor,
Determining the rationale
behind the study and
significance are defined.
literature review is conducted
to collect secondary data
related to topic,
Determining objectives and
aim of the study
For collecting primary data,
researcher approachers to
managers of Marks & Spencer
Selection of research approach
Research methodology used in
the study defined properly.
Questionnaires related to
impact of reward system on

employee motivation is
developed
With the help of survey and
questionnaire methods,
information from respondents
collected.
Arrangement of gathered
information in a chronological
order.
Thematic analysis technique is
applied to the present
outcomes.
Interpretation of collecting data
and findings of research in
systematic manner.
At the end, recommendations
and suggestions for further
study are provided.
Presentation is developed to
present the findings.
Submission of the report
CHAPTER 2- LITERATURE REVIEW
2.1- Introduction
Literature review is the part which contain the information which is directly related with
the aims and objectives of the research. It includes the various views of different authors on the
topic. It critically evaluates all the factors which are related with the industry and which can
affect the workings of the bank. It mentions about all the information which are in relation with
the research topic. This literature review will be based upon the concept of lending services and
credit management (Singhirunnusorn, Donlakorn and Kaewhanin, 2017). It will also cover the
issues which are related credit management and effect of the lending practices on the credit
management of the bank. Views of the different authors will be evaluated on these topics. The

resources which were used to make the literature review are books and journals. It will answer
all the questions in accordance with the research.
2.2
Issues in credit management
As per the author Waemustafa, W. and Sukri, (2015)credit management in the banking
industry is the biggest issue which is faced by the many banks working in this industry. These
issues bring very bad impact upon the reputation of the banks in the market. It makes them to
face the decrease in their market share. The banking industry faces losses due to the issues of
credit management. Bank needs to use all its strengths to cope with these problems. Credit
management is the activity which is very useful for the industry to manage all their credit in the
effective and efficient manner. Issues in this activity can lead the bank to face many problems. It
can be that big which can force the bank to get closed. The cited industry with good practices
and processes in the management of credit grabs the attention of many customers towards them.
It increases their reputation in the market.
On the contrary the author McNeil, Frey and Embrechts, (2015) says there are many
credit risk which can be raised due to mismanagement in the credit practices. These risks can
bring many loses for the industry. Not managing the credit in the proper way will make the
customer bad debts who had borrowed some amount from the bank. Persons who are not able to
pay the loan amount back to the banks are termed as credit risks. These risks arise due to
irresponsible behaviour the manager of this process or activity. The author thinks that the credit
problems can be solved by the managers if they effectively given the loan to the customers after
doing the proper research only. Strong and effective systems can be made to handle the credit
activities of the bank. It will manage these activities in proper way and will cope with all the
issues which are related to this.
In the view of author Brown and Moles, (2014)there are many problems other than credit
management issues in the banking industry. Issues related to this occurs in the banks but are not
important as much as other problems. Issues regarding the expectation of the customers are very
much important than this. Customers are those who are treated as the god. But their range is very
much decreasing in the banking industry.
As per the view of author Brooks, (2015) credit management is not only managing the
loan. It is about the whole credit system in the industry. Credit management will include all the

activities which are related to practices followed for giving the credit. Not good credit system
will surely lead the company towards facing the issues of credit management.
Lending services and credit management
According to the author Mengze and Wei, (2015) lending services are that activities
which are performed while giving loan to the customers. These services should be very much
effective to attract many new consumers towards them. Non- effectiveness of theses services will
lead the cited industry to face many problems. These issues are that bad which can make the
bank to face high amount of losses. So this is necessary to handle these activities with
effectiveness to save the banking industry from facing these problems. This issues can easily be
coped up by using the efficient methods and systems of lending services. Practices which are
done on the basis of lending should be only sanctioned by doing proper research. Full
background of the customers should be checked who had applied for the loan. Not doing this can
lead the bank to face many problems in the future when the time will come to repay the amount
of loan by the consumer. It will also affect receiving of interest amount on the loan.
Relation of lending services and credit management
As per the view of author Karadag, (2015) lending services and credit management
activities are related with each other. Any situation which brings the non- effectiveness of the
lending services in the cited industry will definitely have some bad impact on the credit
management activities. These two are interrelated with each other. Problem in one will cause
surely cause some issues in the other. This will decrease the reputation and goodwill of the
banking industry in the market. Lending services must be effective for the proper credit
management. It will help the company to recover all their losses and make profits. This states
that lending services and credit management both are interlinked to gain success for the banking
industry.
In accordance with the view of author Cantrell, McInnis and Yust, (2013) the services of
the bank which are based on the should be done in the effective way to make the credit
management proper. Proper credit management of the bank will save losses and increase the
profits and advantages. The bank whose lending services are good will attract many more
customers towards them. Not doing proper management of the credits will lead them towards to
face many issues and present customers will also be loosed. Loosing consumers is not at all good
for the banking industry who is already loosing its market share. Proper management can be

done by the effective manager. Mangers who are irresponsible will bring situations which will
not at all be good for the banking industry.
On the other hand the author Athanasoglou, Daniilidis and Delis, (2014) says that lending
services are that which provides the loan to the customers by doing the proper check. Credit
management is the activity which is directly related with the effectiveness of lending services.
Problem arises in the bank's credit management than authority directly check the lending
services, because they both related, if some defect is found in the management of credit than it
will be surely because of some problem in the lending services.
On the contrary author Chiu, (2014) say that lending services and credit management are
not directly related they are indirectly related. Problems in the management of credit can also be
because of some other problems. Proper analysis should be done to find out the problem which
is causing mismanagement in the banking industry. Whole industry faces some problems with
time, these problems can only be solved by the effective management. Internal control system of
the bank should be checked thoroughly to find out the issues of credit management.
As per the view of author Blankespoor and et.al, (2013) issues in the credit management
will lead to make some credit decisions which will also affect the lending services. Many factors
are the reason for management of credit. These factors are to be handled very carefully and
should be completed by following the exact procedure which is decided by the management.
This states that lending services has very deep impact on the credit management activities
of bank.
CHAPTER 3- RESEARCH METHODOLOGY
Resources required
It can be expressed that every researcher is required to match its resources effectively in
order carry out a research successfully and obtain suitable findings. At the time of carrying out a
study, different types of resources such as financial, technology and human resources to gain the
best possible outcomes. The information has collected from both secondary and primary sources
of information.
3.1- Methodology, method and techniques.
It is that part of the research which shows about the qualitative and quantitative
information which will be related to the topic of the study. Research methodology helps the

scholars or learners to know and gain the complete subject matter which will eventually make
them to find their own interpretation. It makes them to make the decision in accordance with all
the information in this part. The whole research will be effectively and efficiently done by
properly doing and selecting the research methodology (Creswell and Poth, 2017). There are
many methods and techniques which are used to make this part more effective. There are many
models which are made by the researchers on with time. These models make doing research is
more efficient and easy way. This part of the report is about the various types of evidences which
are found while working on getting the information. Researchers chose the suitable method
which will be the best for doing the study on the cited topic. Aims and objectives of the research
are effectively achieved by this process. It is very important to select that technique which will
be most suitable for conducting the investigation (Creswell, and Creswell, 2017). Here the
methods and techniques which are appropriate for the current investigation are explained in the
detail.
There are many types of methods and techniques which can be used to do the
investigation. These models have their own procedures to be followed in the research. They are
on the basis of qualitative and quantitative presentation. Qualitative is that approach which show
the detailed analysis of the data. On the other hand quantitative approach shows the statistical
methods to show the information about the research topic (Bernard, 2017). It is important to find
the proper method which can be used and will be most suitable for the conducting the whole
research.
Research approach
It is that method the research which is done on the basis of two approaches. This
technique help in doing the proper exploration of the information. The approaches which are
used in this are deductive and inductive. Deductive approach is that which is on the basis of
making new theory or method to conduct the study. On the other hand there is inductive
approach which is on the basis of conducting the investigation by existing theories and methods
only. For this research the inductive approach has been used (Lewis, 2017). It is qualitative. The
investigation has been properly done because of this. Issues in the lending services and the
credit management can be easily found out by the adopting this research approach. Different and
effective results can be gained through the research approaches. It is very helpful in detailed
exploration of the data.

Research design
It is that method or technique which states about the procedure or process. These can be
used in formulating the information in better and efficient way. The exact process is given by the
research design to conduct the investigation. There are many design designs which can be used
to conduct this type of study (Flick, 2014). Such as meta-analytic, exploratory or experimental.
Very detailed explanation is given in this method or technique of the research. This method is
used with the help of many theories and models. This eventually help the researcher to find out
the various problems and issue which can occur while doing the study. By the help of this
technique situation can be analysed very effectively and easily. The design which is descriptive
in nature gives the detailed explanation about the facts and data. On the other hand there is
exploratory design is that which shows about the exploration of different models which are
suitable for the current topic of the investigation (Inductive and deductive approaches to
researches, 2013). It is known for the identifying the various problems which occurs in the
investigation. The experimental design carries the research on the basis of scientific tools. It can
be used to develop and make improvements in the theory which is specific. The study which is
done have the qualitative nature (Marshall and Rossman, 2014). Descriptive design has been
used. It had been very much suitable for conducting the investigation on the cited topic. Every
information related to the study has effectively analysed by this. The present research cover the
issues which comes in the lending services and credit management of the Barclays Bank. These
issues have very deep impact upon the reputation of the bank in the market and its share.
Research philosophy
It is that method or techniques which shows the pattern that can be followed while
conducting the study. To select the research philosophy is very important for the researcher to do
the investigation in proper and efficient manner. There are two types of philosophies which can
be used in the current study which are interpretivism and positivism. The philosophy of the
interpretivism is about the accumulating the data related to the study. This is qualitative in nature
because using specific tools. On the contrary there is positivism philosophy which is on the basis
of mathematical and scientific tools. The present research is of qualitative nature. It will show
the various issues which the Barclays Bank faces in its lending services and credit management
activities. The philosophy of interpretivism has been used (Zainal, 2017). By using the
philosophy of interpretivism the researcher can do effective and efficient analysis in the proper