TABLE OF CONTENTS
TITLE PAGE
APPROVAL PAGE
DEDICATION
ACKNOWLEDGEMENT
TABLE OF CONTENT
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF STUDY
1.2 STATEMENT OF PROBLEM
1.3 SCOPE OF THE STUDY
1.4 OBJECTIVE OF STUDY
1.5 LIMITAITONS OF STUDY
1.6 DEFINITION OF THE TERM
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 BANK
2.2 IMPORTANCE OF BANKS
2.3 BANK FAILURE
2.4 CAUSES OF BANK FAILURE
2.5 MANAGEMENT RELATED FACTORS
2.6 OWNERSHIP RELATED FACTORS
2.7 ENVIRONMENTAL RELATED FACTORS
2.8 CONSEQUENCES OF BANK FAILURE
2.9 MEASURES TO EMEDY BANK FAILURE
CHAPTER THREE
3.0 SUMMARY OF FINDINGS
3.1 CONCLUSIONS
3.2 RECOMMENDATION
REFERENCES
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The term bank means a place where money and other valuables are kept for safety. Modern commercial banking in Nigeria dates back to the colonial period.
The decline in barter system of trade and the rise in financial transactions of the colonial government goes rise to commercial bank for safety and transmissions of funds. It was for this purpose that African Banking Corporation bead in South Africa was invited in 1892 to open a branch office in Lagos. In 1894, its operations was taken over by the Bank of British west Africa. In 1899 the bank of Nigeria was established by the Royal Niger Company which was later absorbed in 1925 by the Bank of British West Africa.
The Central Bank of Nigeria (CBN) was established in 1957 and it began its operations on July 1st 1959 with an authorized capital of N1.5m. This CBN manages the cost, volume, availability and directions of money and credit in an economy with a view of achieving some desired economic objectives. The industrial and commercial bank was established in 1929 by the business men but it went into liquidation in 1930. The Nigerian Merchant Bank was also formed in 1931 but it went into liquidation in 1936.
These banks contributed significantly to the economic development as follows: –
– The Commercial Banks helps business sectors and grant credit to small and large scale industries.
– They provide employment opportunities
– They maintain large portfolios of local securities
– The aggressive mobilization of domestic savings
– The Central Bank act as bankers bank, banker to government and bank of issue
– The CBN manages the national debt of the country
– It also controls money and credit in the economy.
Prior to the introduction of Structural Adjustment Programme (SAP), the interest rate in banks were foxed by fiat. At the introduction of SAP, the interest rate was deregulated with this deregulation, the interest rates went as high as 45% per anum while the inter-bank rates went as high as 50%. However, in December 1992, the average inter-bank rates closed at 46% for commercial banks and 42 to 80% for merchant banks.
These high rates caused the collapse of many banks and companies. This trend continues until the government formally pegged the rate in 1994 as follows: –
– Savings/deposit rate at 12 – 15% per anum
– Maximum lending rate, 21% per anum.
This is applied to loan and advances, bankers acceptance, commercial paper and rediscounts. These rates continued to apply until the middle of 1996 when the interest rates were deregulated. On the long term funds from the capital market, this has been besieged by many problems and failures among banks and companies.
In 1995, 60 banks were adjusted distressed. In 1996 the number was 47 with 35 banks critically distressed while 12 banks were fairly healthy.
To highlights the issued of bank failure further the managing director of NDIC on 25th April 1995 during the Institute of Chartered Accountant of Nigeria national Award highlighted that: –
– 10 more distressed banks are to be put on sale bringing the total for sale to 16.
– N4billion (cash and assets) have been recovered from debtors of 52 distressed banks. This recovery represents 9.76% of N41billion depositors fund trapped and 6.93% of the institutions net assets estimated at N57.7billion 1996.
– About 48 cases have been prosecuted at the failed bank tribunal out of which to have been concluded
– About N46billion of government fund made up of overdrawn account with CBN, NEXIM, NEFRUND as well as SMS, projects that cannot be justified. This does not include government equity investment in some of these banks and debts owed to government agencies like NITEL, NEPA, Water corporation etc.
These become a source of worry to the public, managers and regulatory bodies like Central Bank of Nigeria, the Nigeria Deposit Insurance Corporation (NDIC) and a problem to the society at large.
This study however, intends to discuss the consequences of this bank failure on the economy of the country and also suggest the possible ways of solving the problem.
1.2 STATEMENT OF THE PROBLEM
Failure is a state of being inadequate, not functioning as it is
expected or required. A company is said to be technically insolvent if it is not able to meet its current obligations. This type of insolvent is temporal and is caused by liquidity. It can be rectified overtime.
On the extreme, a company is said to be operationally insolvent or insolvent in bankruptcy where its liabilities exceed its assets. In this case, the network of the company is said to be negative from the forgoing, it can be seen that the issue of failure of a company ranges from extremes of technical insolvency to bankruptcy.
However, a critical look at the indices of failure as identified in the empirical studies will conclude that the major causes of bank failures is management and other factors peculiar to the industry in which the company is
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Tags: THE BANK FAILURE: CAUSES AND CONSEQUENCES
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Risk Management is the identification assessment and prioritization of risks. It is the effect of uncertainty on objectives, whether positive or negative followed by coordinated and economic of application of resources to monitor and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities (Okeh, 2006).
The survival of every commercial bank depends on its ability to manage its risks and loans or advance portfolio effectively. However in the recent past, commercial banks in Nigeria witnessed rising non-performing credit portfolios and these significantly contributed to the financial distress in the banking sector.
Financial organization need to manage the credit risk inherent in the entire portfolio as well as the risk in individual credit or transaction. This is so because the survival and ability of financial institution to compete depend on their ability to profitability and manage credit risk. This is the reasons why lending is based on the two fundamental products of banking: money and information. Banks obtain these products from customers themselves by offering customer valuable services. They package money and information about their borrowers together with valuable banking services to create loan agreements and sell the loan agreements back to their customers (Hempel and Simonson, 2007).
As such, risk rating system in financial institution contains both objective and subjective elements. Objective aspect are based on financial statements and application of certain financial ratio that reflect liquidity, leverage and earnings. Despite the requirement that risk be quantified, risk rating systems always have a subjective dimension that attempts to capture intangibles such as the quality of management, the borrower’s status within the industry, and the quality of financial reporting. These subjective items may result in inconsistencies.
It is in this regard that many financial institutions have faced difficulties over the years arising from their inability to effectively manage credit risk. As such the major cause of serious banking problems continues to be directly related to tax credit standard for borrowers and counterparties, poor portfolio risk management, or lack of attention lead to a deterioration in the credit standard of a bank’s counterparties. Hence, the need to investigate the subject matter of this research becomes imperative.
1.2 Statement of the Problem
Commercial banks in the recent past witness rising non-performing credit portfolios sequel to the inability of their management to effectively manage risk and credit administration. That problem resulted to high bad debts in commercial bank and a number of other commercial banks were classified as distressed banks by the monetary authorities.
Consequently, the need to examine the subject matter: An Assessment of risk management and credit administration in Union Bank Plc, Kaduna Main branch becomes worthy of investigation.
1.3 Objectives of the Study
The central objective of the study is to assess risk management and credit administration in Union Bank Plc, Kaduna. The specific objectives are:
i) To examine risk management system in Union Bank Kaduna Main Branch.
ii) To assess credit administration in Union Bank Kaduna Main Branch.
iii) To identify the constraints militating against risk management and credit administration in Union Bank.
iv) To proffer workable solutions to the identified problems.
1.4 Significance of the Study
This study will be beneficial to financial institution especially Union Bank Plc, as they utilize the finding of this study as a basis for policy formulation regarding risk management and credit administration in Banks. The shareholders, stakeholders and the entire society will benefit from this study.
1.5 Research Questions
i) How is risk managed in Union Bank Kaduna Main Branch?
ii) How is credit administered in Union Bank Plc Kaduna Main Branch?
iii) What are the constraints militating against risk management and credit administration in Union Bank Plc Kaduna Main Branch?
iv) What are the solutions to the identified problems?
1.6 Scope of the Study
The study shall cover an empirical examination of the assessment of risk management and credit administration in Union Bank Plc Kaduna. To this end, the study will examine how risk is managed in Union Bank as well as credit administration. The study shall cover a time from 2006 – 2011.
1.7 Definition of Terms
1. Credit Risk: This refers to delinquency and default by borrowers i.e. failure to make payment as at when due.
2. Pure Risk: This refers to reduction in business value as a result of damage to business property by theft, robbery, fire, flood or the prospect of premature death of employee due to work-related illness or accident.
3. Price Risk: This refers to variability in cash flows due to change in input and output prices.
4. Credit Administration: This is the system used in managing the exposure of financial institution to loan delinquency and default.
5. Business Risk: This refers to variability in cash flow.
6. Loan Appraisal: This is the process of determining in advance the various lending parameters and determining the overall loan limit for each borrower based on his debt capacity, loan duration.
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(4) Teller Number
We will send your material(s) immediately we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.
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Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.
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That you ordered this material shows you have agreed not to copy word-to-word.
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
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www.easyprojectmaterials.com.ng
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www.worldofnolimit.com
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www.nairaprojects.net
www.uniproject.com.ng
www.uniprojects.com.ng
Tags: LOAN AND CREDIT ADMINISTRATION IN DEPOSIT MONEY BANKS
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Risk Management is the identification assessment and prioritization of risks. It is the effect of uncertainty on objectives, whether positive or negative followed by coordinated and economic of application of resources to monitor and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities (Okeh, 2006).
The survival of every commercial bank depends on its ability to manage its risks and loans or advance portfolio effectively. However in the recent past, commercial banks in Nigeria witnessed rising non-performing credit portfolios and these significantly contributed to the financial distress in the banking sector.
Financial organization need to manage the credit risk inherent in the entire portfolio as well as the risk in individual credit or transaction. This is so because the survival and ability of financial institution to compete depend on their ability to profitability and manage credit risk. This is the reasons why lending is based on the two fundamental products of banking: money and information. Banks obtain these products from customers themselves by offering customer valuable services. They package money and information about their borrowers together with valuable banking services to create loan agreements and sell the loan agreements back to their customers (Hempel and Simonson, 2007).
As such, risk rating system in financial institution contains both objective and subjective elements. Objective aspect are based on financial statements and application of certain financial ratio that reflect liquidity, leverage and earnings. Despite the requirement that risk be quantified, risk rating systems always have a subjective dimension that attempts to capture intangibles such as the quality of management, the borrower’s status within the industry, and the quality of financial reporting. These subjective items may result in inconsistencies.
It is in this regard that many financial institutions have faced difficulties over the years arising from their inability to effectively manage credit risk. As such the major cause of serious banking problems continues to be directly related to tax credit standard for borrowers and counterparties, poor portfolio risk management, or lack of attention lead to a deterioration in the credit standard of a bank’s counterparties. Hence, the need to investigate the subject matter of this research becomes imperative.
1.2 Statement of the Problem
Commercial banks in the recent past witness rising non-performing credit portfolios sequel to the inability of their management to effectively manage risk and credit administration. That problem resulted to high bad debts in commercial bank and a number of other commercial banks were classified as distressed banks by the monetary authorities.
Consequently, the need to examine the subject matter: An Assessment of risk management and credit administration in Union Bank Plc, Kaduna Main branch becomes worthy of investigation.
1.3 Objectives of the Study
The central objective of the study is to assess risk management and credit administration in Union Bank Plc, Kaduna. The specific objectives are:
i) To examine risk management system in Union Bank Kaduna Main Branch.
ii) To assess credit administration in Union Bank Kaduna Main Branch.
iii) To identify the constraints militating against risk management and credit administration in Union Bank.
iv) To proffer workable solutions to the identified problems.
1.4 Significance of the Study
This study will be beneficial to financial institution especially Union Bank Plc, as they utilize the finding of this study as a basis for policy formulation regarding risk management and credit administration in Banks. The shareholders, stakeholders and the entire society will benefit from this study.
1.5 Research Questions
i) How is risk managed in Union Bank Kaduna Main Branch?
ii) How is credit administered in Union Bank Plc Kaduna Main Branch?
iii) What are the constraints militating against risk management and credit administration in Union Bank Plc Kaduna Main Branch?
iv) What are the solutions to the identified problems?
1.6 Scope of the Study
The study shall cover an empirical examination of the assessment of risk management and credit administration in Union Bank Plc Kaduna. To this end, the study will examine how risk is managed in Union Bank as well as credit administration. The study shall cover a time from 2006 – 2011.
1.7 Definition of Terms
1. Credit Risk: This refers to delinquency and default by borrowers i.e. failure to make payment as at when due.
2. Pure Risk: This refers to reduction in business value as a result of damage to business property by theft, robbery, fire, flood or the prospect of premature death of employee due to work-related illness or accident.
3. Price Risk: This refers to variability in cash flows due to change in input and output prices.
4. Credit Administration: This is the system used in managing the exposure of financial institution to loan delinquency and default.
5. Business Risk: This refers to variability in cash flow.
6. Loan Appraisal: This is the process of determining in advance the various lending parameters and determining the overall loan limit for each borrower based on his debt capacity, loan duration.
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#5000) into our bank Account below, send the following information to
08068231953 or 08168759420
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) immediately we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.
But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.
Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.
No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner
CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project. Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.
That you ordered this material shows you have agreed not to copy word-to-word.
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
Visit any of my project websites below:
www.easyprojectmaterials.com
www.easyprojectmaterials.com.ng
www.easyprojectmaterial.net
www.easyprojectmaterial.net.ng
www.easyprojectsolutions.com
www.worldofnolimit.com
www.worldofnolimit.com
www.nairaproject.com.ng
www.nairaprojects.com.ng
www.nairaproject.net
www.nairaprojects.net
www.uniproject.com.ng
www.uniprojects.com.ng
Tags: LOAN AND CREDIT ADMINISTRATION IN DEPOSIT MONEY BANKS
ABSTRACT
This work discusses the effect of money credit policy guidelines on banking industries in nigeria. a case study of industrial and general insurance plc minna niger state. A hundred and twenty questionnaires were distributed among employees from industrial and general insurance plc minna niger state
. Interviews and surveys were also conducted.
Primary and secondary data will be used in the analysis. Tables and percentages will also be used as the instrument of analysis
It will be observed therefore that money credit policy guidelines have a strong and significant impact on banking industries in nigeria
.
TABLE OF CONTENT:
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Research Problem
1.3 Objectives of the Study
1.4 Significance of the Study
1.5 Research Questions
1.6 Research Hypothesis
1.7 Conceptual and Operational Definition
1.8 Assumptions
1.9 Limitations of the Study
CHAPTER TWO
LITERATURE REVIEW
2.1 Sources of Literature
2.2 The Review
2.3 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Method
3.2 Research Design
3.3 Research Sample
3.4 Measuring Instrument
3.5 Data Collection
3.6 Data Analysis
3.7 Expected Result
CHAPTER FOUR
DATA ANALYSIS AND RESULTS
4.1 Data Analysis
4.2 Results
4.3 Discussion
CHAPTER FIVE
SUMMARY AND RECOMMENDATIONS
5.1 Summary
5.2 Recommendations for Further Study
Bibliography
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#25000) into our bank Account below, send the following information to
08068231953 or 08168759420
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) immediately we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.
But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.
Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.
No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner
CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project. Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.
That you ordered this material shows you have agreed not to copy word-to-word.
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
Visit any of our project websites below:
www.easyprojectmaterials.com
www.easyprojectmaterials.com.ng
www.easyprojectmaterial.net
www.easyprojectmaterial.net.ng
www.easyprojectsolutions.com
www.worldofnolimit.com
www.worldofnolimit.com
www.nairaproject.com.ng
www.nairaprojects.com.ng
www.nairaproject.net
www.nairaprojects.net
www.uniproject.com.ng
www.uniprojects.com.ng
Tags: THE EFFECT OF MONEY CREDIT POLICY GUIDELINES ON BANKING INDUSTRIES IN NIGERIA. A CASE STUDY OF INDUSTRIAL AND GENERAL INSURANCE PLC MINNA NIGER STATE
ABSTRACT
This work discusses the effect of money credit policy guidelines on banking industries in nigeria. a case study of industrial and general insurance plc minna niger state. A hundred and twenty questionnaires were distributed among employees from industrial and general insurance plc minna niger state
. Interviews and surveys were also conducted.
Primary and secondary data will be used in the analysis. Tables and percentages will also be used as the instrument of analysis
It will be observed therefore that money credit policy guidelines have a strong and significant impact on banking industries in nigeria
.
TABLE OF CONTENT:
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Research Problem
1.3 Objectives of the Study
1.4 Significance of the Study
1.5 Research Questions
1.6 Research Hypothesis
1.7 Conceptual and Operational Definition
1.8 Assumptions
1.9 Limitations of the Study
CHAPTER TWO
LITERATURE REVIEW
2.1 Sources of Literature
2.2 The Review
2.3 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Method
3.2 Research Design
3.3 Research Sample
3.4 Measuring Instrument
3.5 Data Collection
3.6 Data Analysis
3.7 Expected Result
CHAPTER FOUR
DATA ANALYSIS AND RESULTS
4.1 Data Analysis
4.2 Results
4.3 Discussion
CHAPTER FIVE
SUMMARY AND RECOMMENDATIONS
5.1 Summary
5.2 Recommendations for Further Study
Bibliography
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#25000) into our bank Account below, send the following information to
08068231953 or 08168759420
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) immediately we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.
But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.
Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.
No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner
CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project. Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.
That you ordered this material shows you have agreed not to copy word-to-word.
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
Visit any of our project websites below:
www.easyprojectmaterials.com
www.easyprojectmaterials.com.ng
www.easyprojectmaterial.net
www.easyprojectmaterial.net.ng
www.easyprojectsolutions.com
www.worldofnolimit.com
www.worldofnolimit.com
www.nairaproject.com.ng
www.nairaprojects.com.ng
www.nairaproject.net
www.nairaprojects.net
www.uniproject.com.ng
www.uniprojects.com.ng
Tags: THE EFFECT OF MONEY CREDIT POLICY GUIDELINES ON BANKING INDUSTRIES IN NIGERIA. A CASE STUDY OF INDUSTRIAL AND GENERAL INSURANCE PLC MINNA NIGER STATE
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
The impact of liquidity position in management of financial institution and other economic unit have remained fascinating and intriguing, though very elusive in the process of in investment analysis visa- visa bank port folio management.
There appears to be an interminable argument in the literature over the years on the roles, meaning and determinants of liquidity and credit management. The Nigeria financial environment has noticed increase in credit which has become a problem to the country.
Credit control described as to maximize the value of the firm by achieving a trade a trade off purpose of credit control is not to maximize sales or to minimize the risk of bad debt.
In fact the firm should manage it credit in such a way that sales are expanded to an extent to which risk remains within an acceptable unit. These costs include the credit administration expenses bad debt, losses and opportunity cost of the fund field up in receivables, the aim of liquidity management should be to regulate and control these cost that cannot be
eliminated together.
According to Begg, fisher and Rudiger (1991:130) liquidity refers to the speed and certainty with which an asset can be converted back into money (cash, income) whenever the
Asset holder desires, money itself is the most liquidity asset o all liquidity management seeks to ensure attainment of the short term objective.
A liquid bank is one that stores enough liquid assets and cash together with the ability to raise funds quickly from other source to enable it meet its payment obligation and financial commitment in a timely manner.
Therefore according to Ngwu (2006:36) liquidity management is the act of storing enough funds and raising funds quickly from the market to satisfy depositor loan customer and other parties with a view to maintain public confidence.
STATEMENT OF THE PROBLEM
Liquidity is considered as the success of as bank, therefore ay ineffectiveness in its management consuetude’s a huge problem i.e. it encounter a huge problem that affect the affairs of the financial institution. This problems is therefore analyses here as the basis for this research study.
The analysis commence from the era of banking in inception in Nigeria through it growth stages and till what is it today. The initial bank failures recorded were principal dues to inefficiencies in the management of the
liquidity of such bank which in one way or the other had something to do with either liquidity inadequacy and the relative inefficiency in their management.
As an institutional problem, it has persisted over the years, in determining the survival or otherwise of banks. Although it must be said that some relative degree of banking it is believed that any banking institutions that is properly managed and has adequate liquidity should be able to swim above troubled waters.
Problems sometimes also evolve from banks inordinate urge to make phenomenal profit. In the process of doing this there is the tendency for these banks to get carless in the resources utilization and particularly their management of liquidity.
The resultant effect is usually loss substance and consequently, loss accumulation, a situation which can lead to banking failure. The marginal loans in the banking system calls to mind the important factor that national government of all` time preoccupy themselves with banks. This shows the degree of importance attached to liquidity and its management by these governments and deviation from its ratio or inadequacy of it management always spells trouble for the banking concerned.
The far reacting consequences of inadequate liquidity management can also be examined. Apart from profit declines. Other of attendant consequences
to a bank includes loss of confidence in the particular bank its inability to
fulfill both its short term and long-term obligation, lack of trust on the part o depositors and other customers alike; and the concomitant reduction in level of operations.
A recent example of the eminent distress facing Nigeria bank which is as a result of improper liquidity position management as well as loan loss- accumulation (marginal loans)
OBJECTIVES OF THE STUDY
Considering the nature of banking itself which is a risk taking venture, i.e borrowing short and lending long one sees the indispensability of liquidity for a banks effective and profitable operation liquidity is needed to finance the gap created by mismatching funds. Again liquidity adequacy is a sure way of minimizing the risk portfolio of any bank. The need to put some family into the management of banks liquidity has always been considered a serious issue by the authorities and this has often influenced periodic prudential regulation. As a check on banks against holding excessive cash, Central Bank presently stipulated liquidity ratio of 24.69%, is considered by the Apex bank as being the reasonable maximum any an expression of the bank liquidity assets which comprise cash marketable securities and investments over the bank banks total liabilities (Ngwu 2006:56)
The objectives of the study include
(a). To examine in details the liquidity position of banks in Nigeria using first bank Nigeria as a case study.
(b). To identify causes of illiquidity or factors that influence liquidity management.
(c). To examine how these banks are able to adjust their liquidity and control management in Nigeria financial environment.
(d). To analyses the consequences of inadequate of liquidity control management.
(e). To make some suggestion on policy guideline to the monitory authorities who can after banks current liquidity and credit management practices.
RESEARCH QUESTIONS
The essence that the respective bank should manage their balance sheet inn such a way as to operate within that maximum range and still remain liquid.
The basic questions this research attempt to answer includes: (a). what is the impact of liquidity position in management?
(b). what is the relationship between liquidity and profitability?
(c). what are the criteria for determining adequate liquidity for a bank? (d). how does liquidity influences a bank investment policy?
(e). what are the predicament of inadequate liquidity control management.
SIGNIFICANCE OF THE STUDY
The study justification arises given the unsavory experience of the deregulated banking era in Nigeria and the present global economic meltdown. Apart from this liquidity has always been a source of concern with some Nigeria banks. The importance of liquidity has even acquired a new dimension in the advanced countries of the world in recent years. This is basically because of responses to structural changes and funds management techniques in these countries. The development of new technical innovations that do not necessarily fit into the world of the age long liquidity tests.
The key role played in any banking set-up further epitomizes it importance. Right from time liquidity has been associated with allocation of assets. According to their capacity to generate the cash necessary to satisfy creditors and depositor calls on the bank liabilities.
However, with the emergence of active liability management strategies liquidity has been more than a function, particularly in some instance of the of the banks capacity to acquire additional funds in the market place.
Limitation of the study
Time constraints were one of the limitations encountered in the case of the study.
This is because, this study was carried out during an academic session, the researcher did not have enough time to properly concentrating on this particular study.
Secondly, finance was yet another problem that put a check on the extent of investigation.
Finally there was the problem of inadequate information and unavailable material or information for the study.
SCOPE OF THE STUDY
Due to time and resources constraints the study at hand has been limited to First Bank of Nigeria Plc.
DEFINITION OF TERMS
The following definition terms are given to facilitate better understanding.
LIQUIDITY MANAGEMENT
This is the act of storing enough funds and razing funds quickly from the market to satisfy depositors, Loan customers and other parties with a view to maintain public confidence.
BANK
A bank is a financial house established for the purpose of accepting deposits and lending out funds in addition to other services.
Central bank of Nigeria
This is the national apex and financial institution that regulates the banking system value supply and cost of finds in the economy.
FINANCIAL SYSTEM
The aggregation of financial market arrangement institutions agent that inter-act with each other and other economic unit together with the se of rules and regulation that guide their interactions.
NIGERIAN DEPOSIT INSURANCE CORPORATION (NDIC)
This is the body which ensures that customer funds are insured in the commercial banks at liquidation they make sure the customer are paid bank their deposits.
PROFITABILITY RATIO
This a class of financial metrics that are used to asses a business ability to generate earning and compared to it expenses and other referent costs incurred during a specific period of time, for most of these ratios, having a higher value relative to a competitors ratio or the same ratio from a previous period is indicative that company is doing well.
LIQUIDITY ASSTS THEORY
This theory argues that banks should hold large sum of liquid assets to avert sudden payment request that might be received.
CALL MONEY
They are banks excess reserves on daily or short-term basis with the correspondent banks.
SHORT-TERM GOVERNMENT SECURITIES
These are gifted securities with short-term maturity which are being bought and sold in active market.
MARGINAL LOANS
This is a loan made by a brokerage house to a client that allows the customer to buy stocks on credit
LIQUIDITY RATIO
This is a class of financial metrics that is used to determined a company ability to pay off its short term debts obligation. Generally the higher the value of the ratio, the larger the margin of safety that the company posses to over short-term debts.
LIQUIDITY PORTFOLIO
Liquidity is the ability for the bank to have sufficient capital in it account or cash deposited by individuals and portfolio is any collection of financial assets such as stock bonds and cash it may be held by individual investor and or managed by financial professionals hedge financial institution, or a portfolio is a brief case for caring lose papers.
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#10000) into our bank Account below, send the following information to
08068231953 or 08168759420
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) immediately we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.
But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.
Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.
No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner
CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project. Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.
That you ordered this material shows you have agreed not to copy word-to-word.
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
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www.easyprojectmaterials.com.ng
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www.worldofnolimit.com
www.nairaproject.com.ng
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www.nairaprojects.net
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Tags: THE IMPACT OF CASH RESERVE RATIO ON MONEY DEPOSIT BANKS
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
The impact of liquidity position in management of financial institution and other economic unit have remained fascinating and intriguing, though very elusive in the process of in investment analysis visa- visa bank port folio management.
There appears to be an interminable argument in the literature over the years on the roles, meaning and determinants of liquidity and credit management. The Nigeria financial environment has noticed increase in credit which has become a problem to the country.
Credit control described as to maximize the value of the firm by achieving a trade a trade off purpose of credit control is not to maximize sales or to minimize the risk of bad debt.
In fact the firm should manage it credit in such a way that sales are expanded to an extent to which risk remains within an acceptable unit. These costs include the credit administration expenses bad debt, losses and opportunity cost of the fund field up in receivables, the aim of liquidity management should be to regulate and control these cost that cannot be
eliminated together.
According to Begg, fisher and Rudiger (1991:130) liquidity refers to the speed and certainty with which an asset can be converted back into money (cash, income) whenever the
Asset holder desires, money itself is the most liquidity asset o all liquidity management seeks to ensure attainment of the short term objective.
A liquid bank is one that stores enough liquid assets and cash together with the ability to raise funds quickly from other source to enable it meet its payment obligation and financial commitment in a timely manner.
Therefore according to Ngwu (2006:36) liquidity management is the act of storing enough funds and raising funds quickly from the market to satisfy depositor loan customer and other parties with a view to maintain public confidence.
STATEMENT OF THE PROBLEM
Liquidity is considered as the success of as bank, therefore ay ineffectiveness in its management consuetude’s a huge problem i.e. it encounter a huge problem that affect the affairs of the financial institution. This problems is therefore analyses here as the basis for this research study.
The analysis commence from the era of banking in inception in Nigeria through it growth stages and till what is it today. The initial bank failures recorded were principal dues to inefficiencies in the management of the
liquidity of such bank which in one way or the other had something to do with either liquidity inadequacy and the relative inefficiency in their management.
As an institutional problem, it has persisted over the years, in determining the survival or otherwise of banks. Although it must be said that some relative degree of banking it is believed that any banking institutions that is properly managed and has adequate liquidity should be able to swim above troubled waters.
Problems sometimes also evolve from banks inordinate urge to make phenomenal profit. In the process of doing this there is the tendency for these banks to get carless in the resources utilization and particularly their management of liquidity.
The resultant effect is usually loss substance and consequently, loss accumulation, a situation which can lead to banking failure. The marginal loans in the banking system calls to mind the important factor that national government of all` time preoccupy themselves with banks. This shows the degree of importance attached to liquidity and its management by these governments and deviation from its ratio or inadequacy of it management always spells trouble for the banking concerned.
The far reacting consequences of inadequate liquidity management can also be examined. Apart from profit declines. Other of attendant consequences
to a bank includes loss of confidence in the particular bank its inability to
fulfill both its short term and long-term obligation, lack of trust on the part o depositors and other customers alike; and the concomitant reduction in level of operations.
A recent example of the eminent distress facing Nigeria bank which is as a result of improper liquidity position management as well as loan loss- accumulation (marginal loans)
OBJECTIVES OF THE STUDY
Considering the nature of banking itself which is a risk taking venture, i.e borrowing short and lending long one sees the indispensability of liquidity for a banks effective and profitable operation liquidity is needed to finance the gap created by mismatching funds. Again liquidity adequacy is a sure way of minimizing the risk portfolio of any bank. The need to put some family into the management of banks liquidity has always been considered a serious issue by the authorities and this has often influenced periodic prudential regulation. As a check on banks against holding excessive cash, Central Bank presently stipulated liquidity ratio of 24.69%, is considered by the Apex bank as being the reasonable maximum any an expression of the bank liquidity assets which comprise cash marketable securities and investments over the bank banks total liabilities (Ngwu 2006:56)
The objectives of the study include
(a). To examine in details the liquidity position of banks in Nigeria using first bank Nigeria as a case study.
(b). To identify causes of illiquidity or factors that influence liquidity management.
(c). To examine how these banks are able to adjust their liquidity and control management in Nigeria financial environment.
(d). To analyses the consequences of inadequate of liquidity control management.
(e). To make some suggestion on policy guideline to the monitory authorities who can after banks current liquidity and credit management practices.
RESEARCH QUESTIONS
The essence that the respective bank should manage their balance sheet inn such a way as to operate within that maximum range and still remain liquid.
The basic questions this research attempt to answer includes: (a). what is the impact of liquidity position in management?
(b). what is the relationship between liquidity and profitability?
(c). what are the criteria for determining adequate liquidity for a bank? (d). how does liquidity influences a bank investment policy?
(e). what are the predicament of inadequate liquidity control management.
SIGNIFICANCE OF THE STUDY
The study justification arises given the unsavory experience of the deregulated banking era in Nigeria and the present global economic meltdown. Apart from this liquidity has always been a source of concern with some Nigeria banks. The importance of liquidity has even acquired a new dimension in the advanced countries of the world in recent years. This is basically because of responses to structural changes and funds management techniques in these countries. The development of new technical innovations that do not necessarily fit into the world of the age long liquidity tests.
The key role played in any banking set-up further epitomizes it importance. Right from time liquidity has been associated with allocation of assets. According to their capacity to generate the cash necessary to satisfy creditors and depositor calls on the bank liabilities.
However, with the emergence of active liability management strategies liquidity has been more than a function, particularly in some instance of the of the banks capacity to acquire additional funds in the market place.
Limitation of the study
Time constraints were one of the limitations encountered in the case of the study.
This is because, this study was carried out during an academic session, the researcher did not have enough time to properly concentrating on this particular study.
Secondly, finance was yet another problem that put a check on the extent of investigation.
Finally there was the problem of inadequate information and unavailable material or information for the study.
SCOPE OF THE STUDY
Due to time and resources constraints the study at hand has been limited to First Bank of Nigeria Plc.
DEFINITION OF TERMS
The following definition terms are given to facilitate better understanding.
LIQUIDITY MANAGEMENT
This is the act of storing enough funds and razing funds quickly from the market to satisfy depositors, Loan customers and other parties with a view to maintain public confidence.
BANK
A bank is a financial house established for the purpose of accepting deposits and lending out funds in addition to other services.
Central bank of Nigeria
This is the national apex and financial institution that regulates the banking system value supply and cost of finds in the economy.
FINANCIAL SYSTEM
The aggregation of financial market arrangement institutions agent that inter-act with each other and other economic unit together with the se of rules and regulation that guide their interactions.
NIGERIAN DEPOSIT INSURANCE CORPORATION (NDIC)
This is the body which ensures that customer funds are insured in the commercial banks at liquidation they make sure the customer are paid bank their deposits.
PROFITABILITY RATIO
This a class of financial metrics that are used to asses a business ability to generate earning and compared to it expenses and other referent costs incurred during a specific period of time, for most of these ratios, having a higher value relative to a competitors ratio or the same ratio from a previous period is indicative that company is doing well.
LIQUIDITY ASSTS THEORY
This theory argues that banks should hold large sum of liquid assets to avert sudden payment request that might be received.
CALL MONEY
They are banks excess reserves on daily or short-term basis with the correspondent banks.
SHORT-TERM GOVERNMENT SECURITIES
These are gifted securities with short-term maturity which are being bought and sold in active market.
MARGINAL LOANS
This is a loan made by a brokerage house to a client that allows the customer to buy stocks on credit
LIQUIDITY RATIO
This is a class of financial metrics that is used to determined a company ability to pay off its short term debts obligation. Generally the higher the value of the ratio, the larger the margin of safety that the company posses to over short-term debts.
LIQUIDITY PORTFOLIO
Liquidity is the ability for the bank to have sufficient capital in it account or cash deposited by individuals and portfolio is any collection of financial assets such as stock bonds and cash it may be held by individual investor and or managed by financial professionals hedge financial institution, or a portfolio is a brief case for caring lose papers.
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#5000) into our bank Account below, send the following information to
08068231953 or 08168759420
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) immediately we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.
But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.
Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.
No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner
CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project. Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.
That you ordered this material shows you have agreed not to copy word-to-word.
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
Visit any of our project websites below:
www.easyprojectmaterials.com
www.easyprojectmaterials.com.ng
www.easyprojectmaterial.net
www.easyprojectmaterial.net.ng
www.easyprojectsolutions.com
www.worldofnolimit.com
www.worldofnolimit.com
www.nairaproject.com.ng
www.nairaprojects.com.ng
www.nairaproject.net
www.nairaprojects.net
www.uniproject.com.ng
www.uniprojects.com.ng
Tags: THE IMPACT OF CASH RESERVE RATIO ON MONEY DEPOSIT BANKS
Abstract
This project work was about the role of community banking on the economy of Nigeria: a case study of Edo State. In undertaking this project work research questions were administered to both respondents and staff of the bank. From the study it was confirmed that:
a. The respondents were aware of the existence of community bank in Edo State.
b. The services offered by the bank were provision of credit facilities keeping valuables, credit deposit, mobilization.
c. Services, financial extension services etc problems of providing services to the respondents by the bank was services to the respondents.
d. The problem encountered in providing services to the respondents were poor lending policy, incompetent board and management staff, insider dealing, poor staffing and poor lend of equipment and insolvency, low capitalization etc.
e. The solutions to the problems were erecting healthy environment for a living organization and mobilizing discipline, providing more equipment, adherence to principle of knowing customers etc.
The following from above, recommendations below were given:
a. That qualified staff were employed to improve on the operation of the bank.
b. That the bank improves on its lending policy by making it attractive to the customers who patronize it.
c. That the relevant equipment needed in the bank were provided to make effective the operations of the bank.
d. By ensuring that there was always money for customers to withdraw or loaned whenever needed.
Table of Content
CHAPTER ONE
1.0 Introduction
1.1 Background to the study
1.2 Statement of problem
1.3 Objectives of the study
1.4 Significance of study
1.5 Research questions
1.6 Scope of the study
1.7 Limitations of the study
1.8 Definition of terms
CHAPTER TWO
2.0 Review of related literature
2.1 Antecedent of community banking
2.2 Objectives of community banking
2.3 Community banks
2.4 Problems of community banking system
2.5 Solutions to the problems
CHAPTER THREE
3.0 Methodology and procedure of study
3.1 Research design
3.2 Population of the study
3.3 Sampling of the study
3.4 Sample technique adopted
3.5 Instrumentation
3.6 Method of data collection
3.7 Method of data analysis
CHAPTER FOUR
4.0 Presentation of data and discussion of results
CHAPTER FIVE
5.0 Summary, Conclusion and Recommendation
5.1 Summary
5.2 Conclusion
5.3 Recommendations
BIBLIOGRAPHY
QUESTIONNAIRES
Introduction
BACKGROUND TO THE STUDY
In Nigeria, as in most other developing countries, the financial system consists of number of institution which include the central bank, commercial bank, federal saving, merchant and mortgage banks as well as the community banks, the stock exchange securities commission. These commercial banks carry out their day to day activities they mobilizes funds (savings), these savings are a pool of funds on which the banks on the one hand pay interest to the owners of such funds and then lend these savings or funds to investors in the form of loan, credit, overdraft and advance for the development purposes, these pay back with interest of every lending. The loans and advances constitutes the most important components of a banks asset port-folio and this is why it is in the interest of every lending institution to make sure that it does not acquire any bad or doubtful debts, even though allowances are usually made for it. The cash flow problem which are currently experienced by many businesses under the economic recession have severally reduced by the ability to service bank debts. (according to Nigeria economist 1988:24). Most clients fails to pay in interest and as a result the interest plus the principals accrues, thus making the possibility of repayment remote. There is no banking institution in the country, that is no threatened by the effect of debt defaults on their banking activity (Endeavor 1990.28). In the recent times, debt default has been one of the main setbacks experienced by commercial banks in Nigeria and for these reason the provision for bad debts have been so enormous that they attract attention from both general public and the government. Thus, debt default causes great concern to Nigeria banks.
In the cause of their lending policies banks give loan and advances to customers who for one reason or the other re viable to pay back in such away, the bank are costly unwilling to go into litigations which are costly and time wastage so they write off such monies as bad and doubtful debts. Bad debt are simply loans, which have proven difficult or impossible to recover. The most surprising things is the length of time it takes before the banks cry out for action, this is an indication of how tolerant the system is to fraudulent borrowing. If its existence were not at stake, it can be argued that this sudden attention is the examination of bad debt default on commercial bank in Nigerian might never have arisen. Thus, this research is therefore centred on United Bank for Africa in relation to the examination of debt default on its banking activities.
From the above, this research will be carried out under an investigative analysis on what reform the federal government is enunciating in the community banking programmes in the rural community which will be followed by an identification of all allied strategies and their relevance to the revamping of the dwindled rural economy in the face of the deregulation of the Nigerian economy. It is necessary to study how the non institutional financial sector complements the current development strategies. This study also intend to evaluate the challenges inherent in the operations of the community banking.
1.2 STATEMENT OF PROBLEMS
Despite the recognition given to grass root operators by the government through the establishment of the community banking programmes it appears that such gestures is yet to be accepted by the rural operators. And on the other hand, informal financial sector has not received any support even when it clamors for such obviously because of the emergence of the problems ridden development strategies or programmes. Some people have jointly expressed their view over the government reckless neglect of the informal financial institution. The institutions are consistently starved of funds and it limits the scale of economic activities. It can support and it is equally believed that inadequate liquidity and difficulty in identifying the structure of interest rates are some of the problems facing the institution.
Gain (1991) holds that the establishment of development programmes aimed at rejuvenating from it limbo, the rural sectors by the stampeded Babangida’s administration is nothing but a ruse to hood work and mislead the innocent, the aggrieved and the oppressed. According to Solarin, community banking is a window dressing that lack substance. The he seriously believed that the programmes were more conceptual expression existing only in the contemplation of government imagination.
1.3 PURPOSE OF STUDY
Among the objectives of this study are:
a. To appraise the role of community baking in the development of Nigeria economy.
b. To suggest ways of improving on community banking in the study Edo State.
c. To find out if the financial need of the rural operations are adequately catered for.
d. To know how the record priorities in terms of investment activities.
1.4 SIGNIFICANCE OF THE STUDY
This study will be of importance to the community banks because it will enable community banks to adjust their credit delivery system to match the environment situation and circumstance of the rural operations. The study will be useful to government and the credit seekers because it will enable government to create a new orientation and initiate measures to sanities the operations of the existing programmes and then express credit seeker to many source of short term fiancés. Finally the study will help future researchers as in areas of seeking information.
1.5 RESEARCH QUESTIONS
This study will be guided by the following:
a. What are the services provided by the community bank?
b. What are the roles of community banks in a depressed economy?
c. What are the problems of community banking in the Edo State?
d. How does your bank facile these problems?
1.6 SCOPE OF STUDY
The study was the role of community banking on the economy of Nigeria: a case study of Edo State. The study among other things covers the antecedent to community banking, nature and characteristics of the informal savings pattern. The study also covers the expected roles of community banks to rural development, the emerging peculiarities and the complementary of community banks with informal units.
1.7 DEFINITION OF TERMS
Bank: It is an organization offering financial services, especially the safe keeping of money.
Banking: Banking is the business of accepting deposits and lending money to customers. It is a trade like other business concerns because it has customers which are transacts business.
Community: A community “sentiment area” with emphasis upon affective interrelationship or it is a group of any size whose member’s ahs a consciousness of living a common life and sharing common destiny.
Development: Development can be seen as a change from one state to another to the extent that the new state is different from the formal in terms of developing.
The Role Of Commercial Bank In A Depressed Economy: A Case Study Of Edo State Economy
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#10000) into our bank Account below, send the following information to
08068231953 or 08168759420
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) immediately we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.
But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.
Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.
No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner
CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project. Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.
That you ordered this material shows you have agreed not to copy word-to-word.
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
Visit any of our project websites below:
www.easyprojectmaterials.com
www.easyprojectmaterials.com.ng
www.easyprojectmaterial.net
www.easyprojectmaterial.net.ng
www.easyprojectsolutions.com
www.worldofnolimit.com
www.worldofnolimit.com
www.nairaproject.com.ng
www.nairaprojects.com.ng
www.nairaproject.net
www.nairaprojects.net
www.uniproject.com.ng
www.uniprojects.com.ng
Tags: THE ROLE OF COMMERCIAL BANK IN A DEPRESSED ECONOMY
Abstract
This project work was about the role of community banking on the economy of Nigeria: a case study of Edo State. In undertaking this project work research questions were administered to both respondents and staff of the bank. From the study it was confirmed that:
a. The respondents were aware of the existence of community bank in Edo State.
b. The services offered by the bank were provision of credit facilities keeping valuables, credit deposit, mobilization.
c. Services, financial extension services etc problems of providing services to the respondents by the bank was services to the respondents.
d. The problem encountered in providing services to the respondents were poor lending policy, incompetent board and management staff, insider dealing, poor staffing and poor lend of equipment and insolvency, low capitalization etc.
e. The solutions to the problems were erecting healthy environment for a living organization and mobilizing discipline, providing more equipment, adherence to principle of knowing customers etc.
The following from above, recommendations below were given:
a. That qualified staff were employed to improve on the operation of the bank.
b. That the bank improves on its lending policy by making it attractive to the customers who patronize it.
c. That the relevant equipment needed in the bank were provided to make effective the operations of the bank.
d. By ensuring that there was always money for customers to withdraw or loaned whenever needed.
Table of Content
CHAPTER ONE
1.0 Introduction
1.1 Background to the study
1.2 Statement of problem
1.3 Objectives of the study
1.4 Significance of study
1.5 Research questions
1.6 Scope of the study
1.7 Limitations of the study
1.8 Definition of terms
CHAPTER TWO
2.0 Review of related literature
2.1 Antecedent of community banking
2.2 Objectives of community banking
2.3 Community banks
2.4 Problems of community banking system
2.5 Solutions to the problems
CHAPTER THREE
3.0 Methodology and procedure of study
3.1 Research design
3.2 Population of the study
3.3 Sampling of the study
3.4 Sample technique adopted
3.5 Instrumentation
3.6 Method of data collection
3.7 Method of data analysis
CHAPTER FOUR
4.0 Presentation of data and discussion of results
CHAPTER FIVE
5.0 Summary, Conclusion and Recommendation
5.1 Summary
5.2 Conclusion
5.3 Recommendations
BIBLIOGRAPHY
QUESTIONNAIRES
Introduction
BACKGROUND TO THE STUDY
In Nigeria, as in most other developing countries, the financial system consists of number of institution which include the central bank, commercial bank, federal saving, merchant and mortgage banks as well as the community banks, the stock exchange securities commission. These commercial banks carry out their day to day activities they mobilizes funds (savings), these savings are a pool of funds on which the banks on the one hand pay interest to the owners of such funds and then lend these savings or funds to investors in the form of loan, credit, overdraft and advance for the development purposes, these pay back with interest of every lending. The loans and advances constitutes the most important components of a banks asset port-folio and this is why it is in the interest of every lending institution to make sure that it does not acquire any bad or doubtful debts, even though allowances are usually made for it. The cash flow problem which are currently experienced by many businesses under the economic recession have severally reduced by the ability to service bank debts. (according to Nigeria economist 1988:24). Most clients fails to pay in interest and as a result the interest plus the principals accrues, thus making the possibility of repayment remote. There is no banking institution in the country, that is no threatened by the effect of debt defaults on their banking activity (Endeavor 1990.28). In the recent times, debt default has been one of the main setbacks experienced by commercial banks in Nigeria and for these reason the provision for bad debts have been so enormous that they attract attention from both general public and the government. Thus, debt default causes great concern to Nigeria banks.
In the cause of their lending policies banks give loan and advances to customers who for one reason or the other re viable to pay back in such away, the bank are costly unwilling to go into litigations which are costly and time wastage so they write off such monies as bad and doubtful debts. Bad debt are simply loans, which have proven difficult or impossible to recover. The most surprising things is the length of time it takes before the banks cry out for action, this is an indication of how tolerant the system is to fraudulent borrowing. If its existence were not at stake, it can be argued that this sudden attention is the examination of bad debt default on commercial bank in Nigerian might never have arisen. Thus, this research is therefore centred on United Bank for Africa in relation to the examination of debt default on its banking activities.
From the above, this research will be carried out under an investigative analysis on what reform the federal government is enunciating in the community banking programmes in the rural community which will be followed by an identification of all allied strategies and their relevance to the revamping of the dwindled rural economy in the face of the deregulation of the Nigerian economy. It is necessary to study how the non institutional financial sector complements the current development strategies. This study also intend to evaluate the challenges inherent in the operations of the community banking.
1.2 STATEMENT OF PROBLEMS
Despite the recognition given to grass root operators by the government through the establishment of the community banking programmes it appears that such gestures is yet to be accepted by the rural operators. And on the other hand, informal financial sector has not received any support even when it clamors for such obviously because of the emergence of the problems ridden development strategies or programmes. Some people have jointly expressed their view over the government reckless neglect of the informal financial institution. The institutions are consistently starved of funds and it limits the scale of economic activities. It can support and it is equally believed that inadequate liquidity and difficulty in identifying the structure of interest rates are some of the problems facing the institution.
Gain (1991) holds that the establishment of development programmes aimed at rejuvenating from it limbo, the rural sectors by the stampeded Babangida’s administration is nothing but a ruse to hood work and mislead the innocent, the aggrieved and the oppressed. According to Solarin, community banking is a window dressing that lack substance. The he seriously believed that the programmes were more conceptual expression existing only in the contemplation of government imagination.
1.3 PURPOSE OF STUDY
Among the objectives of this study are:
a. To appraise the role of community baking in the development of Nigeria economy.
b. To suggest ways of improving on community banking in the study Edo State.
c. To find out if the financial need of the rural operations are adequately catered for.
d. To know how the record priorities in terms of investment activities.
1.4 SIGNIFICANCE OF THE STUDY
This study will be of importance to the community banks because it will enable community banks to adjust their credit delivery system to match the environment situation and circumstance of the rural operations. The study will be useful to government and the credit seekers because it will enable government to create a new orientation and initiate measures to sanities the operations of the existing programmes and then express credit seeker to many source of short term fiancés. Finally the study will help future researchers as in areas of seeking information.
1.5 RESEARCH QUESTIONS
This study will be guided by the following:
a. What are the services provided by the community bank?
b. What are the roles of community banks in a depressed economy?
c. What are the problems of community banking in the Edo State?
d. How does your bank facile these problems?
1.6 SCOPE OF STUDY
The study was the role of community banking on the economy of Nigeria: a case study of Edo State. The study among other things covers the antecedent to community banking, nature and characteristics of the informal savings pattern. The study also covers the expected roles of community banks to rural development, the emerging peculiarities and the complementary of community banks with informal units.
1.7 DEFINITION OF TERMS
Bank: It is an organization offering financial services, especially the safe keeping of money.
Banking: Banking is the business of accepting deposits and lending money to customers. It is a trade like other business concerns because it has customers which are transacts business.
Community: A community “sentiment area” with emphasis upon affective interrelationship or it is a group of any size whose member’s ahs a consciousness of living a common life and sharing common destiny.
Development: Development can be seen as a change from one state to another to the extent that the new state is different from the formal in terms of developing.
The Role Of Commercial Bank In A Depressed Economy: A Case Study Of Edo State Economy
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Tags: THE ROLE OF COMMERCIAL BANK IN A DEPRESSED ECONOMY
ABSTRACT
This work discusses the impact of mortgage banking in Nigerians economic development programmes. A hundred and twenty questionnaires were shared amongst people from selected regions in Nigeria. Interviews and surveys were also conducted.
Primary and secondary data were used the analysis. Both frequency distribution and regression analysis were used.
It was observed therefore that mortgage banking has a significant positive impact on Nigerians economic development programmes. Also, there is a positive relationship between mortgage banking and Nigerians economic development programmes.
TABLE OF CONTENT:
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Research Problem
1.3 Objectives of the Study
1.4 Significance of the Study
1.5 Research Questions
1.6 Research Hypothesis
1.7 Conceptual and Operational Definition
1.8 Assumptions
1.9 Limitations of the Study
CHAPTER TWO
LITERATURE REVIEW
2.1 Sources of Literature
2.2 The Review
2.3 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Method
3.2 Research Design
3.3 Research Sample
3.4 Measuring Instrument
3.5 Data Collection
3.6 Data Analysis
3.7 Expected Result
CHAPTER FOUR
DATA ANALYSIS AND RESULTS
4.1 Data Analysis
4.2 Results
4.3 Discussion
CHAPTER FIVE
SUMMARY AND RECOMMENDATIONS
5.1 Summary
5.2 Recommendations for Further Study
Bibliography
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Bank: UBA.
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Tags: THE IMPACT OF MORTGAGE BANKING IN NIGERIANS ECONOMIC DEVELOPMENT PROGRAMMES
