ABSTRACT
The economy of Nigeria has a lot of structural distortion is the 1980’s. The economy policies pursued prior to 1985 made the Nigeria economy price distortions created by a highly over-valued currency and inappropriate pricing of agricultural and other local products.
The control measure introduced prior to deregulation of the economy were unable to improve the economy positively, instead, that period was characterized by short- supply of industrial inputs. Plant closure, large retrenchment of workers, shortage of goods and price inflation with unfavourable balance of payment.
The Federal Government has pursued vigorously the policy of deregulation of the economy. The structural adjustment programme was designed to attack and remove the Fundamental structural distortions prevalent in the Nigeria economy. Commercial banks should equally anticipate and sensitize itself with the challenges of a deregulated economy.
The major deregulation policies used were deregulation of interest rates structure, introduction of second tier foreign exchange market.
Since the Federal Government is contemplating deregulation as the only paramount solution to the distorted economic structure. The banking Industry (Commercial Banks) need to reposition itself to take full advantage of the gains that might arise from such deregulation. Commercial banks should equally anticipate and sensitize itself with the challenges of a deregulated economy.
APPENDIX 11
QUESTIONAIRE ADMINISTERD AMONG THE BANKING PUBLIC
Dear sir/ Madam,
This questionnaire is part of a research into the impact of interest rate deregulation on commercial banks lending operations in Nigeria
The research is in partial fulfillment of the requirement for the a ward of a Higher National Diploma (H.N.D) In Banking and Financial Department
Kindly read each question and briefly express your opinion, your honest and Unbiased opinion is highly solicited for as they will help me with date will be treated in strict confidence.
Thanks for your cooperation.
NEAMADI CHIGOZIE .M.
TABLE OF CONTENT
Title page i
Approval page ii
Dedication iii
Acknowledgement iv
Abstract v
Table of contents vi
CHAPTER ONE
1.0 INTRODUCTION
1.1 Statement of problem
1.2 Purpose of study
1.3 Significance and relevance of study
1.4 Scope and limitation of study
1.5 Formulation of Hypothesis
1.6 Research methodology
1.7 Definition of terms
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1. Conceptual framework
2.2. Empirical framework
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 Research Designs
3.2 Sample size
3.3 Source of Data
3.4 Data Collection Method
3.5 Technique of Data Analysis
CHAPTER FOUR
4.0 DATA PRESENTATION AND ANALYSIS
4.1 Data presentation
4.2 Data Analysis
4.3 Test of Hypothesis
CHAPTER FIVE
5.0 SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary of general findings
Conclusion
Recommendation
Bibliography
Appendix- Questionnaire
CHAPTER ONE
1.0 INTRODUCTION
The economy of Nigeria had a lot of structural distortions in the 1980s. The economic policies pursued prior to 1985 made the Nigeria economy vulnerable to external shock. Consequently the 1986 budget sought to de-emphasized controls and adopted policy measures aimed at expanding the economy resource balc. To attain this goal the 1986 budget at a tone in the structural adjustment programme which was launched in July 1980 with the introduction of structural adjustment programme came to deregulation of the Nigerian economy.
The deregulation policy which the structural adjustment called for is the process by process by which government remove selected regulations in bull-mess or order to encourage the efficient operation of market.
The theory is that fever regulations will lead to a raised level of competitiveness, therefore higher productivity, more efficiency and lower price overall. The deregulation policy was deigned to.
i. Restructure and diversity the productive base of the economy in order to reduce dependency on the oil sector.
ii. To achieve focal and balance of payment viability.
iii. To lay the basis for sustainable non- inflationary or minimal inflationary growth rate.
iv. To lesion the dominance of unproductive investment in the economy, improve the sectors efficiency and intensity the growth the sectors efficiency and intensity the growth potential of the private sector. The listed aims are not exhaustive.
The banking industry which is a major instrument through which government execute their policies, need to appropriately reposition itself to take full advantages of the gains that might arise from deregulation, as well as face the challenges.
Deregulation of the economy will definitely prose some challenges to the banking industry. However the ability to copy with the challenges which will come in the form competitive lending rates, effective management of credit risk, level of expertise in investment banking and cooperate finance activities will all be the important determinant of success for banks.
As a financial intermediary, commercial banks are expected to witness an increase in credit request with concessionaries interest rate. This is as a result of high rate of return that is expected from deregulation of the economy, especially toward deregulation of petroleum products which will definitely attract investors. This is where in the banking industry come in.
The project will therefore aim at analyzing the effect the deregulation of the economy will have on activated of commercial banks.
1.1 STATEMENT OF PROBLEM
Due to the underdeveloped nature of Nigeria banking system it is sometime said that banks have not met the standard expected to them in the process of economic development especially with the introduction of deregulatory policy. There are many problems which the commercial bank is not exception some of the problem to be treated in the text which of course threatens the financial performance of commercial banks are as follows.
The reluctant competition between commercial banks as a result of the deregulatory policy and the possibility of bank failure which prompted the Federal Government to establish the Nigeria Deposit insurance corporation.
i. Ability to cope with the high demand for bank loans with competitive lending rate.
ii. The level of expertise in investment banking and corporate finance.
iii. Ability to effectively manage credit risk these with other problems threatens the financial performance to commercial bank due to the introduction the deregulation of the economy.
1.2 PURPOSE OF THE STUDY
The general purpose of this study is to examine the performance of commercial banks under a deregulated economy with a view of assessing, the effect, challenges, and benefits as well as achievement such deregulation will pose on commercial banks.
This study attempt to critically identify and analyze the impact of government deregulation of the economy on commercial banks with the aim making useful recommendation son how to improve commercial bank performance.
Emphasis will also be made on the current banking practices and habit as means of battling with the challenges and the threats deregulation has brought with it. Also to identify the various achievements made with the inception of the policy as well as to examine how effective commercial banks have been since the inception of the policy.
Furthermore this text will try to compare the activities of commercial banks under the system of regulation and deregulation and deregulation in order to know if the main objective of the policy is been achieve. Recommendation that will enhance the efficiency of banks operations will equally be made.
1.3 SIGNIFICANCE AND RLEVANCE OF THE STUDY
The findings of this work will contribute to knowledge in the subject matter, other researcher students and the entire public will hopefully benefit from this study since it will form the basis for other research for other research work.
1.4 SCOPE AND LIMITATION OF THE STUDY
This study will cover a period of four year period (2000-2004) and a case study approach using first Bank Plc will be adopted. This project will concern itself with the financial performance of commercial banks as measured by a study of the effect of economic deregulation of the various activities of commercial banks.
In order to obtain a broader picture of the effect the deregulations of the economy have on commercial banks. Question arises will also be administer on some other selected banks, in Owerri.
However emphasis on the research will be based on First Bank of Nigeria Plc Owerri
The study will be constrained by the following:
i. The policies and conventions employed by first banks of Nigerian Plc will not necessary be the same as those used by other banks.
ii. The deregulation policies as used by the Federal Government through central bank of Nigeria on a regular basis. There is the possibility that not all policies will be available for this study.
iii. Lack of access to computation and compulsivity of handling multivariate data analysis may pole the greatest problem for the study.
Due to the time limitation and financial constraint it will not be possible in visit more than three commercial banks with concentration on first Bank of Nigeria Plc Owerri.
1.5 FORMILATION OF HYPOTHESIS
The following hypothesis will be tested.
i. The deregulation of the economy resulted in an upsurge I n the number of commercial banks in the country.
ii. The deregulation of the economy has resulted an increase in commercial banks profitability.
iii. Deregulation of the economy has led to a shape increase in banks bad and doubtful dept.
The research shall restrict itself with the use descriptive hypothesis. The null and alternative hypotheses which are normally used in statistical testing will be use, with null hypothesis represented as Ho and alternative hypothesis represented by H1.
1.6 RESEARCH METHODOLOGY
The research methodology will involve the collection of data through oral interviews to top management staff of some commercial banks, namely spring bank guarantee truest bank first ban al in Owerri.
Questionnaire will also be administered to the staff of there banks s well as the use of their financial statement. The researches will analysis the banks records from 200-2004 (A period of form years) both years inclusive.
The research will adopt the case study approach in its analysis and First Bank of Nigeria Plc, Owerri branch will be used as the case study. Major analysis will be based on information received from First Bank Plc, Owerri branch.
1.6 DEFINITION OF TERMS
1. Collateral: An item of value demanded by banks as security for loans granted to customers.
2. Credit: Money created by commercial banks through the media of loans and discounts granted to customers.
3. Data: Any kind of information (numerical or non- numerical) relevant to research.
4. Data Analysis: Critical examination of data with explanations and interpretations of research data.
5. Interview: Discullion or conference between two or more people either buy face to face or through a medium such at telephone.
6. Loan: Money lent to customer by banks
7. Over draft: Amount of money by which a bank account is been overdrawn by a customer.
8. Advance: Money paid before the due date.
9. Bank: An institution which borrows money from the public and also lend it to the public.
10. Commercial Bank: Banks designed to lend short term loan and overdraft to their customers.
11. Concept: A term having universal acceptable definition or meaning.
12. Delimitation and limitation: Constraints or problem the research encountered in the course of the research.
13. Population: Totality of all items under study.
14. Primary Data: Data that is made use of by the same person who collected it.
15. Research: Investigation under taking to discover or confirm the existence of something, or to get additional information or knowledge about something.
16. Methodology: Procedure and technique used, including problems encountered in the course of the research.
17. Questionnaire: List of questions in a printed form administered to respondents.
18. Sample: Traction or part of the population taken in a specified, manner.
19. Null Hypothesis: A statistical hypothesis formulated for the purpose of rejecting or nullifying the hypothesis.
20. Oval interview: Face to face interview with the respondent.
21. Respondent: People (Sample of the population) who respondent to the questionnaire or were interviewed.
22. Variable: Any feature possessed by members of a population that differed from one another.
23. Return: The measure of profitability on investment.
24. Ratio: A sample mathematical expression of the relationship of one item to the other.
25. Trend: Time movement in a set of observation taken at specified time period usually at equal intervals.
26. Interest Rate: Rental payment for the use of credit y borrows and returns for parting with liquidity by lenders.
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That you ordered this material shows you have agreed not to copy word-to-word.
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Tags: THE IMPACT OF INTEREST RATE DEREGULATION ON COMMERCIAL BANKS LENDING OPERATIONS IN NIGERIA(CASE STUDY OF UNION BANK OF NIGERIA PLC)
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Back credit and lending function as we are aware evolved from a rather humble beginning as a result of the discovery made by the gold smith some continues ago, though only a small proportion of the money kept with him for security purpose was indeed required by the depositors at any one time and that he could safely lend the rest to borrowers and make interest charge thereon. The banking habit that latter inherited such practice felt that only about nine(9) to ten (10) percent of the bank deposit at a give time were therefore demand by the depositors.
However the commercial banks role of pooling funds together for the more surplus economics units to the deficit units of the country’s economy is what is regarded to as their leading function banks have in recent time been described as a machine of economic growth in an economy for the fact they perform this resources allocation function by mobilizing and channeling resources from savings surplus economic units to savings defeit units. In this position, they help in accelerating the trend of economic activities in various sectors of the economy, there by increasing the level of utility and wants of individuals and corporate bodies.
Well, as the above function is met, they would be more involved in the development of the economy because their raw material (money) is where other sector and sub-sector of the economy rotate.
More so, commercial banks have proved and are likely to remain the dominate financing intermediaries in Nigeria for they at present account for over 520 of the resources of the financial system to the economy and seemed to be more then units or sub-sectors able in all respects to influence the course of development.
This is why, not with standing the deregulation of the economy, banking is yet regarded as one of the most controlled or regulated in Nigeria. In monetary amendment guideline circular No 21 of January, 1987 the central bank of Nigeria (CBN) quoted as this in order to enhance the development of financial position and achieve a realistic resource allocation, the following change effected all control on interest rates were then removed in line tooth the emphresis on deregulation of the economy the second condition without in order to server as a signed to the desired direction of interest rate changes, the minimum rediscount rate would continue to be fixed by the central bank. This has gone further to show the benefits of commercial banks in the growth of the country’s economy. This is because in spite of the deregulation in the whole economy. The banks are still kept in check always and forced to operate within the policies of the monetary authorities.
1.2 STATEMENT OF THE PROBLEM
In Nigeria, as in most other developing countries of the world, poor banking awareness (especially in the rural areas) and under-litches militating against economic development. This ugly trend is as a result of poor and under develop banking system which has been identified for long. Actually, failure to develop a favourable bank lending policies and implication was pointed out as a major short coming of the west African currency Board (WACB) promoting the establishment of the central bank of Nigeria in 1958.
It was in 1937 that internal autonomy was achieved another commission was set up. During this period the federal government engaged the service of another financial expert of the bank of England, Mr. J.B. Loynes, it was his recommendation that led to the establishment of the central bank of Nigeria by the central bank of Nigeria ordinance of 17th march, 1959. it commenced of N1.5million of which N1.25 million was the amount paid up what infact appears annoying is that since the establishment of central Bank, the problem has remained unsolved despite all efforts made so far to get the bank improved in tending policies in Nigeria.
According to Iheneta (1988) he said that banks should shoulder some more social responsibilities to the shareholders. “It must be realized that bank are not charitable organizations like the international Red Cross”. They are in business to make profit and have compelling responsibilities to the their shareholders.
More so, the urge to a standard investigative research. A competitive Analysis of commercial banks lending policies and their implications.
1.3 OBJECTIVE OF THE STUDY
The aim of this research work is to undertake an in-depth analysis of the implications of lending policies on borrowers, commercial banks and the economy as a whole. Other specific objectives include:.
i. Assessing the extent to which commercial banks comply with statutory allocation of credit to the different sectors of the economy view the central bank credit guidelines.
ii. To test the rigidity of the commercial banks lending policies and their effect on the borrowing customers.
iii. To draw out lines of credit offered by these banks and their appraised process, highlighting the environmental influence that impinges on commercial banks lending policies in Nigeria.
Lending is of paramount importance in the economic hence the research work will investigate lending policies and practices of commercial banking system with country, finding out how realistic set making recommendation and suggesting ways to ensure effective implementation of those policies to achieve the desire objectives.
1.4 definition of terms
i. What is a bank: This is a financial institution that deals with money, in form of receiving drawing against such deposits on demand, issue of cheque and lending to customers.
ii. Financial intermediation: This is defined as the process by which financial houses serving as mediators accepts savings from individuals and house holds and lend these savings to the users.
iii. Funds mobilization: This is the process by which financial intermediaries put idle funds into effective use by collecting savings from those who have surplus idle funds (Net savers) and making them available to other (Net borrower’s) who need them for investment.
iv. loanable funds: This defined as the amount of bank founds which it can lend to its customers (or the public) at a particular time after making provision for legal reserve requirement.
v. Monetary policy:- It is a policy which deals with the discretionary control of money supply by the monetary authorities in order to achieve started or desired economic goals.
vi. Lending policy: The establishment of the direction and use of the funds from stock holder depositions others to control the composition and size of the loan portfolio and the determination of the general circumstance under which it is appropriated to make a loan. it is specifically designed by the management of the bank by which as lending practices are designed and controlled.
vii. Effective lending: A quantum of lending which maximizes the bankers objectives of liquidating and profitability and the economy’s objective of development.
viii. Lending: The facilities which a bankers offers to his customers or non-customer on the ground that such facility will be returned to the banker offer a specified time, on payment of some changes by the customers.
ix. PLC: Public Limited Company
x. CBN: Central Bank of Nigeria
Xi. WACB: West African Currency Board
Xii UBA: United Bank Of African PLC
Xiii. UBU Union Bank Of 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 (#3000) into our bank Account below, send the following information to
08139462710 or 08137701720
(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:
08139462710 or 08137701720
YOU CAN ALSO CALL:
08068231953, 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
Tags: BANK CREDIT AND LENDING FUNCTION
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Back credit and lending function as we are aware evolved from a rather humble beginning as a result of the discovery made by the gold smith some continues ago, though only a small proportion of the money kept with him for security purpose was indeed required by the depositors at any one time and that he could safely lend the rest to borrowers and make interest charge thereon. The banking habit that latter inherited such practice felt that only about nine(9) to ten (10) percent of the bank deposit at a give time were therefore demand by the depositors.
However the commercial banks role of pooling funds together for the more surplus economics units to the deficit units of the country’s economy is what is regarded to as their leading function banks have in recent time been described as a machine of economic growth in an economy for the fact they perform this resources allocation function by mobilizing and channeling resources from savings surplus economic units to savings defeit units. In this position, they help in accelerating the trend of economic activities in various sectors of the economy, there by increasing the level of utility and wants of individuals and corporate bodies.
Well, as the above function is met, they would be more involved in the development of the economy because their raw material (money) is where other sector and sub-sector of the economy rotate.
More so, commercial banks have proved and are likely to remain the dominate financing intermediaries in Nigeria for they at present account for over 520 of the resources of the financial system to the economy and seemed to be more then units or sub-sectors able in all respects to influence the course of development.
This is why, not with standing the deregulation of the economy, banking is yet regarded as one of the most controlled or regulated in Nigeria. In monetary amendment guideline circular No 21 of January, 1987 the central bank of Nigeria (CBN) quoted as this in order to enhance the development of financial position and achieve a realistic resource allocation, the following change effected all control on interest rates were then removed in line tooth the emphresis on deregulation of the economy the second condition without in order to server as a signed to the desired direction of interest rate changes, the minimum rediscount rate would continue to be fixed by the central bank. This has gone further to show the benefits of commercial banks in the growth of the country’s economy. This is because in spite of the deregulation in the whole economy. The banks are still kept in check always and forced to operate within the policies of the monetary authorities.
1.2 STATEMENT OF THE PROBLEM
In Nigeria, as in most other developing countries of the world, poor banking awareness (especially in the rural areas) and under-litches militating against economic development. This ugly trend is as a result of poor and under develop banking system which has been identified for long. Actually, failure to develop a favourable bank lending policies and implication was pointed out as a major short coming of the west African currency Board (WACB) promoting the establishment of the central bank of Nigeria in 1958.
It was in 1937 that internal autonomy was achieved another commission was set up. During this period the federal government engaged the service of another financial expert of the bank of England, Mr. J.B. Loynes, it was his recommendation that led to the establishment of the central bank of Nigeria by the central bank of Nigeria ordinance of 17th march, 1959. it commenced of N1.5million of which N1.25 million was the amount paid up what infact appears annoying is that since the establishment of central Bank, the problem has remained unsolved despite all efforts made so far to get the bank improved in tending policies in Nigeria.
According to Iheneta (1988) he said that banks should shoulder some more social responsibilities to the shareholders. “It must be realized that bank are not charitable organizations like the international Red Cross”. They are in business to make profit and have compelling responsibilities to the their shareholders.
More so, the urge to a standard investigative research. A competitive Analysis of commercial banks lending policies and their implications.
1.3 OBJECTIVE OF THE STUDY
The aim of this research work is to undertake an in-depth analysis of the implications of lending policies on borrowers, commercial banks and the economy as a whole. Other specific objectives include:.
i. Assessing the extent to which commercial banks comply with statutory allocation of credit to the different sectors of the economy view the central bank credit guidelines.
ii. To test the rigidity of the commercial banks lending policies and their effect on the borrowing customers.
iii. To draw out lines of credit offered by these banks and their appraised process, highlighting the environmental influence that impinges on commercial banks lending policies in Nigeria.
Lending is of paramount importance in the economic hence the research work will investigate lending policies and practices of commercial banking system with country, finding out how realistic set making recommendation and suggesting ways to ensure effective implementation of those policies to achieve the desire objectives.
1.4 definition of terms
i. What is a bank: This is a financial institution that deals with money, in form of receiving drawing against such deposits on demand, issue of cheque and lending to customers.
ii. Financial intermediation: This is defined as the process by which financial houses serving as mediators accepts savings from individuals and house holds and lend these savings to the users.
iii. Funds mobilization: This is the process by which financial intermediaries put idle funds into effective use by collecting savings from those who have surplus idle funds (Net savers) and making them available to other (Net borrower’s) who need them for investment.
iv. loanable funds: This defined as the amount of bank founds which it can lend to its customers (or the public) at a particular time after making provision for legal reserve requirement.
v. Monetary policy:- It is a policy which deals with the discretionary control of money supply by the monetary authorities in order to achieve started or desired economic goals.
vi. Lending policy: The establishment of the direction and use of the funds from stock holder depositions others to control the composition and size of the loan portfolio and the determination of the general circumstance under which it is appropriated to make a loan. it is specifically designed by the management of the bank by which as lending practices are designed and controlled.
vii. Effective lending: A quantum of lending which maximizes the bankers objectives of liquidating and profitability and the economy’s objective of development.
viii. Lending: The facilities which a bankers offers to his customers or non-customer on the ground that such facility will be returned to the banker offer a specified time, on payment of some changes by the customers.
ix. PLC: Public Limited Company
x. CBN: Central Bank of Nigeria
Xi. WACB: West African Currency Board
Xii UBA: United Bank Of African PLC
Xiii. UBU Union Bank Of 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 (#10000) into our bank Account below, send the following information to
08139462710 or 08137701720
(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:
08139462710 or 08137701720
YOU CAN ALSO CALL:
08068231953, 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
Tags: BANK CREDIT AND LENDING FUNCTION
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Back credit and lending function as we are aware evolved from a rather humble beginning as a result of the discovery made by the gold smith some continues ago, though only a small proportion of the money kept with him for security purpose was indeed required by the depositors at any one time and that he could safely lend the rest to borrowers and make interest charge thereon. The banking habit that latter inherited such practice felt that only about nine(9) to ten (10) percent of the bank deposit at a give time were therefore demand by the depositors.
However the commercial banks role of pooling funds together for the more surplus economics units to the deficit units of the country’s economy is what is regarded to as their leading function banks have in recent time been described as a machine of economic growth in an economy for the fact they perform this resources allocation function by mobilizing and channeling resources from savings surplus economic units to savings defeit units. In this position, they help in accelerating the trend of economic activities in various sectors of the economy, there by increasing the level of utility and wants of individuals and corporate bodies.
Well, as the above function is met, they would be more involved in the development of the economy because their raw material (money) is where other sector and sub-sector of the economy rotate.
More so, commercial banks have proved and are likely to remain the dominate financing intermediaries in Nigeria for they at present account for over 520 of the resources of the financial system to the economy and seemed to be more then units or sub-sectors able in all respects to influence the course of development.
This is why, not with standing the deregulation of the economy, banking is yet regarded as one of the most controlled or regulated in Nigeria. In monetary amendment guideline circular No 21 of January, 1987 the central bank of Nigeria (CBN) quoted as this in order to enhance the development of financial position and achieve a realistic resource allocation, the following change effected all control on interest rates were then removed in line tooth the emphresis on deregulation of the economy the second condition without in order to server as a signed to the desired direction of interest rate changes, the minimum rediscount rate would continue to be fixed by the central bank. This has gone further to show the benefits of commercial banks in the growth of the country’s economy. This is because in spite of the deregulation in the whole economy. The banks are still kept in check always and forced to operate within the policies of the monetary authorities.
1.2 STATEMENT OF THE PROBLEM
In Nigeria, as in most other developing countries of the world, poor banking awareness (especially in the rural areas) and under-litches militating against economic development. This ugly trend is as a result of poor and under develop banking system which has been identified for long. Actually, failure to develop a favourable bank lending policies and implication was pointed out as a major short coming of the west African currency Board (WACB) promoting the establishment of the central bank of Nigeria in 1958.
It was in 1937 that internal autonomy was achieved another commission was set up. During this period the federal government engaged the service of another financial expert of the bank of England, Mr. J.B. Loynes, it was his recommendation that led to the establishment of the central bank of Nigeria by the central bank of Nigeria ordinance of 17th march, 1959. it commenced of N1.5million of which N1.25 million was the amount paid up what infact appears annoying is that since the establishment of central Bank, the problem has remained unsolved despite all efforts made so far to get the bank improved in tending policies in Nigeria.
According to Iheneta (1988) he said that banks should shoulder some more social responsibilities to the shareholders. “It must be realized that bank are not charitable organizations like the international Red Cross”. They are in business to make profit and have compelling responsibilities to the their shareholders.
More so, the urge to a standard investigative research. A competitive Analysis of commercial banks lending policies and their implications.
1.3 OBJECTIVE OF THE STUDY
The aim of this research work is to undertake an in-depth analysis of the implications of lending policies on borrowers, commercial banks and the economy as a whole. Other specific objectives include:.
i. Assessing the extent to which commercial banks comply with statutory allocation of credit to the different sectors of the economy view the central bank credit guidelines.
ii. To test the rigidity of the commercial banks lending policies and their effect on the borrowing customers.
iii. To draw out lines of credit offered by these banks and their appraised process, highlighting the environmental influence that impinges on commercial banks lending policies in Nigeria.
Lending is of paramount importance in the economic hence the research work will investigate lending policies and practices of commercial banking system with country, finding out how realistic set making recommendation and suggesting ways to ensure effective implementation of those policies to achieve the desire objectives.
1.4 definition of terms
i. What is a bank: This is a financial institution that deals with money, in form of receiving drawing against such deposits on demand, issue of cheque and lending to customers.
ii. Financial intermediation: This is defined as the process by which financial houses serving as mediators accepts savings from individuals and house holds and lend these savings to the users.
iii. Funds mobilization: This is the process by which financial intermediaries put idle funds into effective use by collecting savings from those who have surplus idle funds (Net savers) and making them available to other (Net borrower’s) who need them for investment.
iv. loanable funds: This defined as the amount of bank founds which it can lend to its customers (or the public) at a particular time after making provision for legal reserve requirement.
v. Monetary policy:- It is a policy which deals with the discretionary control of money supply by the monetary authorities in order to achieve started or desired economic goals.
vi. Lending policy: The establishment of the direction and use of the funds from stock holder depositions others to control the composition and size of the loan portfolio and the determination of the general circumstance under which it is appropriated to make a loan. it is specifically designed by the management of the bank by which as lending practices are designed and controlled.
vii. Effective lending: A quantum of lending which maximizes the bankers objectives of liquidating and profitability and the economy’s objective of development.
viii. Lending: The facilities which a bankers offers to his customers or non-customer on the ground that such facility will be returned to the banker offer a specified time, on payment of some changes by the customers.
ix. PLC: Public Limited Company
x. CBN: Central Bank of Nigeria
Xi. WACB: West African Currency Board
Xii UBA: United Bank Of African PLC
Xiii. UBU Union Bank Of 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
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Tags: BANK CREDIT AND LENDING FUNCTION
ABSTRACT
Banks are financial institutions that accepts deposits, gives out loans to people and organizations.
It is only through an effective generation and allocation of funds with its objectives aimed at standard and stabilizing the function and financial resources of banking institutions and to encourage initiatives and organiztion potential.
The basic procedure of banks is generating funds and properly allocating them
The current trends of inefficiency and ineffectiveness of the practice of generation and allocation of funds should be considered with the frame work of available resources.
There are no discipline on the part of the leadership, management and staff of the banks in collecting revenue efficiently and also try to put them into effective use.
In the light of the above, the researcher major objectives as regards this research work was to identity those source of finance available to banks, their uses and problem associated with their finance in Nigeria
The problem associated with sources, allocation of bank funds was critically examine in this project.
In handling the above research work primary and secondary data was used. The sources of primary data was by the use of questionnaires and oral interviews, while the secondary data sources are text books.
The analysis of data was based on percentages. It is on the strength of the finding that recommendation and conclusion was made.
TABLE OF CONTENTS
TITLE PAGE
CHAPTER ONE
1.1 BACK GROUND OF THE STUDY
1.2 STATEMENT OF PROBLEM
1.3 OBJECTIVE OF THE STUDY
1.4 RESEARCH QUESTIONS
1.5 STATEMENT OF HYPOTHESIS
1.6 SIGIFICANCE OF THE STUDY
1.7 DEFINITION OF TERMS
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 THE MEANING OF BANKS
2.2 FUNCTIONS OF BANKS
2.3 SOURCES OF REVENUE AVALIABLE TO BANKS
2.3.1 EXTERNAL ATTRIBUTES OF BANKS
2.4 THE IMPORTANCE/USES OF REVENUE GENERATED BY BANKS
2.5 PROBLEMS OF BANKS IN GENERATING FUNDS
CHAPTER THREE
3 RESEARCH SESIGN AND METHOD ————————————
3.1 SOURCE OF DATA ———————————————————
3.1.1 PRIMARY DATA ————————————————————
3.1.2 SECONDARY DATA ——————————————————–
3.2 POPULATION OF STUDY ————————————————-
3.2 INSTRUMENTATION ——————————————————-
3.4 SAMPLE SIZE —————————————————————–
3.5 VALIDITY AND RELIABILITY OF THE MEAUSRING INSRUMENT —————————————————————–
3.6 SAMPLING TECHNIQUES
CHAPTER FOUR
4.0 PRESENTATION OF DATA ————————————————
41 INTERPRETATION AND ANYALYSIS OF DATA ——————-
4.2 TESTING OF HYPOTHESIS ———————————————–
CHAPTER FIVE
FINDINGS, RECOMMENDATION AND CONCLUSION.
An examination of the sources and uses of bank funds in Nigeria
Proposal
Banks are financial institutions that accepts deposits, gives out loans to people and organizations.
The basic objective underlying this study or this research work was to identify those sources of funds available to the banks, their uses and problems associated with bank funds generation and allocation in Nigeria.
This research has been structural into five chapters to make for easy reading and comprehension.
The author, dealt with the bank ground of the research work which gives an overview of the basic procedure of bank funds generation and its effective allocation.
He went further to the review of related literature the author lay hands on various Journals news paper, write various view as regard the sources and uses of bank funds in Nigeria. It also considered the current trend of inefficiency and ineffectiveness of certain banks.
Chapter three. Deals with research design and methodology. Primary and secondary data are used effectively.
Chapter four is presentation of data. The presentation interpretation, analysis of data and test of hypothesis in chapter one are done in this chapter using chi-square method.
Chapter five, dealt with findings, recommendation and conclusion. The authors finding is base on the hypothesis reveals that revenue available to bank functions and the funds readily available to theml are also poorly managed. It is upon- this findings that the author make recommendation and draw conclusion.
CHAPTER ONE
INTRODUCTION
1.1 BACK GROUND OF THE STUDY
The basic objective underlying this study or this research work was to identify those sources of funds available to the banks, their uses and problems associated with bank funds generation and allocation in Nigeria.
Banks are financial institutions that accepts deposits, gives out loans to people and organizations. The Banks and other financial institutions Decree No 25 of 1991 defined a commercial bank as “any bank in
Functions of Financial Institutions 23
Nigeria whose business includes the acceptance of deposits withdrawable by cheques. This definition presents the major distinguishing functions of commercial banks from other banks. According to Osumbor (1984) in his book Business Finance and Banking in Nigeria, commercial banks are unique in their performance of services and are distinguished from other forms of financial institutions or intermediaries because of the following functions:
Accept deposits from customers i.e. savings, current or demand deposit, fixed deposit or time deposit.
Lend money to approved customers i.e. overdraft, loan.
Allow the use of cheque
Safe-keep valuable assets for customer.
Provision of standing order facilities.
Give business advice to their customers.
Agents of government for monetary policy.
Assists customers for acquisition and sales of shares.
Issue of discount bills of exchange i.e. payment on behalf of customer.
Commercial bank creates money, this is done through deposits.
Money created = Original Deposits.
Cash ratio or reserve requirements.
They involve in agricultural financing.
They offer employment opportunities.
They act as guarantors to their customers.
They solve problem of foreign exchange.
They issue traveller’s cheques.
Their activities accelerate the economic development of a nation since they act as intermediaries
between large number of depositors and borrowers.
These banks could assume the responsibility of carrying out the duties of attorney, executor and
trustee.
1.5 STATEMENT OF HYPIOTHESIS
To guide research, the following hypothesis was formulated.
1 Ho: The available funds are able to meet the expectations and serve of the banks.
H1: The available fund are not able to meet the expectations and services of the banks.
2. Ho: the funds available to the banks are not
prudently managed.
H1: The funds available to the local government authorities are not prudently managed.
3. Ho: Nigeria banks are underfunded partly.
H1: Nigeria banks are underfunded partly.
4. Ho: There is financial autonomy of banks.
H1: There is no financial autonomy of banks
1.5 SIGNIFICANCE OF THE STUDY
The factors militating against a successful performance by the banks may be dual in native. They be managerial and financial in nature. They be managerial and financial in native. Finance is an important part of most organizations decision, and a clear understanding of the way in which decisions are made is essential if the role finance is to be seen in its true perspectives.
Finance is very crucial because if influences planning and achievement pf set objectives.
If the financial resources of the banks area buoyant and viable then this will go a long way strength to strengthen the economy and further boost the financial credibility of the banks.
1.2 STATEMENT OF PROBLEMS
The basic problem of banks includes:
- The problem of revenue generation and its effective allocation.
- Proper accountability of funds generated
- The problem of effective displine leadership in the banking sector
1.3 OBJECTIVES OF THE STUDY
a To examine the problems in bank finance and establish the factors responsible for poor revenue generation and ineffective allocation of the bank projects
b. To identify the problems especially as it affect finance with a view of making adequate recommendation for improvement
1.4 REASEARCH QUESTIONS
1. Are the availability of funds able to meet the expectation and services of the banks?
2. Are the funds available to the banks prudently managed?
The Significance of this study is there, to find ways of improving bank finance for effective channeling and allocation.
LIMITATION OF THE STUDY
1.6 There are a lot of limitations that surrounded this study. The main ones are time factors, non availability of funds at the time of this research, poor response to question also bring some difficulties.
1.7 DEFINITION OF TERMS
Bank: Banks are financial institutions that accepts deposits, gives out loans to people and organizations.
* Finance: – A body of fact with the raising of fund by banks. It encompass personal, business and public finance.
* Bank Allocation: The percentage of funds, the banks gets from the national fund.
REFERENCES
Odoh. N. (1998) Public finance for Polythenics
JTC Publisher Enugu P.15
Agbo .LO. (1995) Banking and politic in Nigeria
JTC Publisher Enugu P.15
Gboyega A. (1998) Banking and Effective Participation in western states
(Ph.D. Thesis), Ibadan, PP 70-78.
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 (#3000) into our bank Account below, send the following information to
08139462710 or 08137701720
(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:
08139462710 or 08137701720
YOU CAN ALSO CALL:
08068231953, 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
Tags: SOURCES AND ALLOCATION OF FUNDS IN NIGERIA BANKING INDUSTRY
ABSTRACT
Banks are financial institutions that accepts deposits, gives out loans to people and organizations.
It is only through an effective generation and allocation of funds with its objectives aimed at standard and stabilizing the function and financial resources of banking institutions and to encourage initiatives and organiztion potential.
The basic procedure of banks is generating funds and properly allocating them
The current trends of inefficiency and ineffectiveness of the practice of generation and allocation of funds should be considered with the frame work of available resources.
There are no discipline on the part of the leadership, management and staff of the banks in collecting revenue efficiently and also try to put them into effective use.
In the light of the above, the researcher major objectives as regards this research work was to identity those source of finance available to banks, their uses and problem associated with their finance in Nigeria
The problem associated with sources, allocation of bank funds was critically examine in this project.
In handling the above research work primary and secondary data was used. The sources of primary data was by the use of questionnaires and oral interviews, while the secondary data sources are text books.
The analysis of data was based on percentages. It is on the strength of the finding that recommendation and conclusion was made.
TABLE OF CONTENTS
TITLE PAGE
CHAPTER ONE
1.1 BACK GROUND OF THE STUDY
1.2 STATEMENT OF PROBLEM
1.3 OBJECTIVE OF THE STUDY
1.4 RESEARCH QUESTIONS
1.5 STATEMENT OF HYPOTHESIS
1.6 SIGIFICANCE OF THE STUDY
1.7 DEFINITION OF TERMS
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 THE MEANING OF BANKS
2.2 FUNCTIONS OF BANKS
2.3 SOURCES OF REVENUE AVALIABLE TO BANKS
2.3.1 EXTERNAL ATTRIBUTES OF BANKS
2.4 THE IMPORTANCE/USES OF REVENUE GENERATED BY BANKS
2.5 PROBLEMS OF BANKS IN GENERATING FUNDS
CHAPTER THREE
3 RESEARCH SESIGN AND METHOD ————————————
3.1 SOURCE OF DATA ———————————————————
3.1.1 PRIMARY DATA ————————————————————
3.1.2 SECONDARY DATA ——————————————————–
3.2 POPULATION OF STUDY ————————————————-
3.2 INSTRUMENTATION ——————————————————-
3.4 SAMPLE SIZE —————————————————————–
3.5 VALIDITY AND RELIABILITY OF THE MEAUSRING INSRUMENT —————————————————————–
3.6 SAMPLING TECHNIQUES
CHAPTER FOUR
4.0 PRESENTATION OF DATA ————————————————
41 INTERPRETATION AND ANYALYSIS OF DATA ——————-
4.2 TESTING OF HYPOTHESIS ———————————————–
CHAPTER FIVE
FINDINGS, RECOMMENDATION AND CONCLUSION.
An examination of the sources and uses of bank funds in Nigeria
Proposal
Banks are financial institutions that accepts deposits, gives out loans to people and organizations.
The basic objective underlying this study or this research work was to identify those sources of funds available to the banks, their uses and problems associated with bank funds generation and allocation in Nigeria.
This research has been structural into five chapters to make for easy reading and comprehension.
The author, dealt with the bank ground of the research work which gives an overview of the basic procedure of bank funds generation and its effective allocation.
He went further to the review of related literature the author lay hands on various Journals news paper, write various view as regard the sources and uses of bank funds in Nigeria. It also considered the current trend of inefficiency and ineffectiveness of certain banks.
Chapter three. Deals with research design and methodology. Primary and secondary data are used effectively.
Chapter four is presentation of data. The presentation interpretation, analysis of data and test of hypothesis in chapter one are done in this chapter using chi-square method.
Chapter five, dealt with findings, recommendation and conclusion. The authors finding is base on the hypothesis reveals that revenue available to bank functions and the funds readily available to theml are also poorly managed. It is upon- this findings that the author make recommendation and draw conclusion.
CHAPTER ONE
INTRODUCTION
1.1 BACK GROUND OF THE STUDY
The basic objective underlying this study or this research work was to identify those sources of funds available to the banks, their uses and problems associated with bank funds generation and allocation in Nigeria.
Banks are financial institutions that accepts deposits, gives out loans to people and organizations. The Banks and other financial institutions Decree No 25 of 1991 defined a commercial bank as “any bank in
Functions of Financial Institutions 23
Nigeria whose business includes the acceptance of deposits withdrawable by cheques. This definition presents the major distinguishing functions of commercial banks from other banks. According to Osumbor (1984) in his book Business Finance and Banking in Nigeria, commercial banks are unique in their performance of services and are distinguished from other forms of financial institutions or intermediaries because of the following functions:
Accept deposits from customers i.e. savings, current or demand deposit, fixed deposit or time deposit.
Lend money to approved customers i.e. overdraft, loan.
Allow the use of cheque
Safe-keep valuable assets for customer.
Provision of standing order facilities.
Give business advice to their customers.
Agents of government for monetary policy.
Assists customers for acquisition and sales of shares.
Issue of discount bills of exchange i.e. payment on behalf of customer.
Commercial bank creates money, this is done through deposits.
Money created = Original Deposits.
Cash ratio or reserve requirements.
They involve in agricultural financing.
They offer employment opportunities.
They act as guarantors to their customers.
They solve problem of foreign exchange.
They issue traveller’s cheques.
Their activities accelerate the economic development of a nation since they act as intermediaries
between large number of depositors and borrowers.
These banks could assume the responsibility of carrying out the duties of attorney, executor and
trustee.
1.5 STATEMENT OF HYPIOTHESIS
To guide research, the following hypothesis was formulated.
1 Ho: The available funds are able to meet the expectations and serve of the banks.
H1: The available fund are not able to meet the expectations and services of the banks.
2. Ho: the funds available to the banks are not
prudently managed.
H1: The funds available to the local government authorities are not prudently managed.
3. Ho: Nigeria banks are underfunded partly.
H1: Nigeria banks are underfunded partly.
4. Ho: There is financial autonomy of banks.
H1: There is no financial autonomy of banks
1.5 SIGNIFICANCE OF THE STUDY
The factors militating against a successful performance by the banks may be dual in native. They be managerial and financial in nature. They be managerial and financial in native. Finance is an important part of most organizations decision, and a clear understanding of the way in which decisions are made is essential if the role finance is to be seen in its true perspectives.
Finance is very crucial because if influences planning and achievement pf set objectives.
If the financial resources of the banks area buoyant and viable then this will go a long way strength to strengthen the economy and further boost the financial credibility of the banks.
1.2 STATEMENT OF PROBLEMS
The basic problem of banks includes:
- The problem of revenue generation and its effective allocation.
- Proper accountability of funds generated
- The problem of effective displine leadership in the banking sector
1.3 OBJECTIVES OF THE STUDY
a To examine the problems in bank finance and establish the factors responsible for poor revenue generation and ineffective allocation of the bank projects
b. To identify the problems especially as it affect finance with a view of making adequate recommendation for improvement
1.4 REASEARCH QUESTIONS
1. Are the availability of funds able to meet the expectation and services of the banks?
2. Are the funds available to the banks prudently managed?
The Significance of this study is there, to find ways of improving bank finance for effective channeling and allocation.
LIMITATION OF THE STUDY
1.6 There are a lot of limitations that surrounded this study. The main ones are time factors, non availability of funds at the time of this research, poor response to question also bring some difficulties.
1.7 DEFINITION OF TERMS
Bank: Banks are financial institutions that accepts deposits, gives out loans to people and organizations.
* Finance: – A body of fact with the raising of fund by banks. It encompass personal, business and public finance.
* Bank Allocation: The percentage of funds, the banks gets from the national fund.
REFERENCES
Odoh. N. (1998) Public finance for Polythenics
JTC Publisher Enugu P.15
Agbo .LO. (1995) Banking and politic in Nigeria
JTC Publisher Enugu P.15
Gboyega A. (1998) Banking and Effective Participation in western states
(Ph.D. Thesis), Ibadan, PP 70-78.
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
08139462710 or 08137701720
(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:
08139462710 or 08137701720
YOU CAN ALSO CALL:
08068231953, 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
Tags: SOURCES AND ALLOCATION OF FUNDS IN NIGERIA BANKING INDUSTRY
ABSTRACT
Banks are financial institutions that accepts deposits, gives out loans to people and organizations.
It is only through an effective generation and allocation of funds with its objectives aimed at standard and stabilizing the function and financial resources of banking institutions and to encourage initiatives and organiztion potential.
The basic procedure of banks is generating funds and properly allocating them
The current trends of inefficiency and ineffectiveness of the practice of generation and allocation of funds should be considered with the frame work of available resources.
There are no discipline on the part of the leadership, management and staff of the banks in collecting revenue efficiently and also try to put them into effective use.
In the light of the above, the researcher major objectives as regards this research work was to identity those source of finance available to banks, their uses and problem associated with their finance in Nigeria
The problem associated with sources, allocation of bank funds was critically examine in this project.
In handling the above research work primary and secondary data was used. The sources of primary data was by the use of questionnaires and oral interviews, while the secondary data sources are text books.
The analysis of data was based on percentages. It is on the strength of the finding that recommendation and conclusion was made.
TABLE OF CONTENTS
TITLE PAGE
CHAPTER ONE
1.1 BACK GROUND OF THE STUDY
1.2 STATEMENT OF PROBLEM
1.3 OBJECTIVE OF THE STUDY
1.4 RESEARCH QUESTIONS
1.5 STATEMENT OF HYPOTHESIS
1.6 SIGIFICANCE OF THE STUDY
1.7 DEFINITION OF TERMS
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 THE MEANING OF BANKS
2.2 FUNCTIONS OF BANKS
2.3 SOURCES OF REVENUE AVALIABLE TO BANKS
2.3.1 EXTERNAL ATTRIBUTES OF BANKS
2.4 THE IMPORTANCE/USES OF REVENUE GENERATED BY BANKS
2.5 PROBLEMS OF BANKS IN GENERATING FUNDS
CHAPTER THREE
3 RESEARCH SESIGN AND METHOD ————————————
3.1 SOURCE OF DATA ———————————————————
3.1.1 PRIMARY DATA ————————————————————
3.1.2 SECONDARY DATA ——————————————————–
3.2 POPULATION OF STUDY ————————————————-
3.2 INSTRUMENTATION ——————————————————-
3.4 SAMPLE SIZE —————————————————————–
3.5 VALIDITY AND RELIABILITY OF THE MEAUSRING INSRUMENT —————————————————————–
3.6 SAMPLING TECHNIQUES
CHAPTER FOUR
4.0 PRESENTATION OF DATA ————————————————
41 INTERPRETATION AND ANYALYSIS OF DATA ——————-
4.2 TESTING OF HYPOTHESIS ———————————————–
CHAPTER FIVE
FINDINGS, RECOMMENDATION AND CONCLUSION.
An examination of the sources and uses of bank funds in Nigeria
Proposal
Banks are financial institutions that accepts deposits, gives out loans to people and organizations.
The basic objective underlying this study or this research work was to identify those sources of funds available to the banks, their uses and problems associated with bank funds generation and allocation in Nigeria.
This research has been structural into five chapters to make for easy reading and comprehension.
The author, dealt with the bank ground of the research work which gives an overview of the basic procedure of bank funds generation and its effective allocation.
He went further to the review of related literature the author lay hands on various Journals news paper, write various view as regard the sources and uses of bank funds in Nigeria. It also considered the current trend of inefficiency and ineffectiveness of certain banks.
Chapter three. Deals with research design and methodology. Primary and secondary data are used effectively.
Chapter four is presentation of data. The presentation interpretation, analysis of data and test of hypothesis in chapter one are done in this chapter using chi-square method.
Chapter five, dealt with findings, recommendation and conclusion. The authors finding is base on the hypothesis reveals that revenue available to bank functions and the funds readily available to theml are also poorly managed. It is upon- this findings that the author make recommendation and draw conclusion.
CHAPTER ONE
INTRODUCTION
1.1 BACK GROUND OF THE STUDY
The basic objective underlying this study or this research work was to identify those sources of funds available to the banks, their uses and problems associated with bank funds generation and allocation in Nigeria.
Banks are financial institutions that accepts deposits, gives out loans to people and organizations. The Banks and other financial institutions Decree No 25 of 1991 defined a commercial bank as “any bank in
Functions of Financial Institutions 23
Nigeria whose business includes the acceptance of deposits withdrawable by cheques. This definition presents the major distinguishing functions of commercial banks from other banks. According to Osumbor (1984) in his book Business Finance and Banking in Nigeria, commercial banks are unique in their performance of services and are distinguished from other forms of financial institutions or intermediaries because of the following functions:
Accept deposits from customers i.e. savings, current or demand deposit, fixed deposit or time deposit.
Lend money to approved customers i.e. overdraft, loan.
Allow the use of cheque
Safe-keep valuable assets for customer.
Provision of standing order facilities.
Give business advice to their customers.
Agents of government for monetary policy.
Assists customers for acquisition and sales of shares.
Issue of discount bills of exchange i.e. payment on behalf of customer.
Commercial bank creates money, this is done through deposits.
Money created = Original Deposits.
Cash ratio or reserve requirements.
They involve in agricultural financing.
They offer employment opportunities.
They act as guarantors to their customers.
They solve problem of foreign exchange.
They issue traveller’s cheques.
Their activities accelerate the economic development of a nation since they act as intermediaries
between large number of depositors and borrowers.
These banks could assume the responsibility of carrying out the duties of attorney, executor and
trustee.
1.5 STATEMENT OF HYPIOTHESIS
To guide research, the following hypothesis was formulated.
1 Ho: The available funds are able to meet the expectations and serve of the banks.
H1: The available fund are not able to meet the expectations and services of the banks.
2. Ho: the funds available to the banks are not
prudently managed.
H1: The funds available to the local government authorities are not prudently managed.
3. Ho: Nigeria banks are underfunded partly.
H1: Nigeria banks are underfunded partly.
4. Ho: There is financial autonomy of banks.
H1: There is no financial autonomy of banks
1.5 SIGNIFICANCE OF THE STUDY
The factors militating against a successful performance by the banks may be dual in native. They be managerial and financial in nature. They be managerial and financial in native. Finance is an important part of most organizations decision, and a clear understanding of the way in which decisions are made is essential if the role finance is to be seen in its true perspectives.
Finance is very crucial because if influences planning and achievement pf set objectives.
If the financial resources of the banks area buoyant and viable then this will go a long way strength to strengthen the economy and further boost the financial credibility of the banks.
1.2 STATEMENT OF PROBLEMS
The basic problem of banks includes:
- The problem of revenue generation and its effective allocation.
- Proper accountability of funds generated
- The problem of effective displine leadership in the banking sector
1.3 OBJECTIVES OF THE STUDY
a To examine the problems in bank finance and establish the factors responsible for poor revenue generation and ineffective allocation of the bank projects
b. To identify the problems especially as it affect finance with a view of making adequate recommendation for improvement
1.4 REASEARCH QUESTIONS
1. Are the availability of funds able to meet the expectation and services of the banks?
2. Are the funds available to the banks prudently managed?
The Significance of this study is there, to find ways of improving bank finance for effective channeling and allocation.
LIMITATION OF THE STUDY
1.6 There are a lot of limitations that surrounded this study. The main ones are time factors, non availability of funds at the time of this research, poor response to question also bring some difficulties.
1.7 DEFINITION OF TERMS
Bank: Banks are financial institutions that accepts deposits, gives out loans to people and organizations.
* Finance: – A body of fact with the raising of fund by banks. It encompass personal, business and public finance.
* Bank Allocation: The percentage of funds, the banks gets from the national fund.
REFERENCES
Odoh. N. (1998) Public finance for Polythenics
JTC Publisher Enugu P.15
Agbo .LO. (1995) Banking and politic in Nigeria
JTC Publisher Enugu P.15
Gboyega A. (1998) Banking and Effective Participation in western states
(Ph.D. Thesis), Ibadan, PP 70-78.
HOW TO GET THE FULL PROJECT WORK
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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:
08139462710 or 08137701720
YOU CAN ALSO CALL:
08068231953, 08168759420
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www.easyprojectmaterials.com.ng
www.easyprojectmaterial.net
www.easyprojectmaterial.net.ng
www.easyprojectsolutions.com
www.worldofnolimit.com
www.worldofnolimit.com
Tags: SOURCES AND ALLOCATION OF FUNDS IN NIGERIA BANKING INDUSTRY
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Back credit and lending function as we are aware evolved from a rather humble beginning as a result of the discovery made by the gold smith some continues ago, though only a small proportion of the money kept with him for security purpose was indeed required by the depositors at any one time and that he could safely lend the rest to borrowers and make interest charge thereon. The banking habit that latter inherited such practice felt that only about nine(9) to ten (10) percent of the bank deposit at a give time were therefore demand by the depositors.
However the commercial banks role of pooling funds together for the more surplus economics units to the deficit units of the country’s economy is what is regarded to as their leading function banks have in recent time been described as a machine of economic growth in an economy for the fact they perform this resources allocation function by mobilizing and channeling resources from savings surplus economic units to savings defeit units. In this position, they help in accelerating the trend of economic activities in various sectors of the economy, there by increasing the level of utility and wants of individuals and corporate bodies.
Well, as the above function is met, they would be more involved in the development of the economy because their raw material (money) is where other sector and sub-sector of the economy rotate.
More so, commercial banks have proved and are likely to remain the dominate financing intermediaries in Nigeria for they at present account for over 520 of the resources of the financial system to the economy and seemed to be more then units or sub-sectors able in all respects to influence the course of development.
This is why, not with standing the deregulation of the economy, banking is yet regarded as one of the most controlled or regulated in Nigeria. In monetary amendment guideline circular No 21 of January, 1987 the central bank of Nigeria (CBN) quoted as this in order to enhance the development of financial position and achieve a realistic resource allocation, the following change effected all control on interest rates were then removed in line tooth the emphresis on deregulation of the economy the second condition without in order to server as a signed to the desired direction of interest rate changes, the minimum rediscount rate would continue to be fixed by the central bank. This has gone further to show the benefits of commercial banks in the growth of the country’s economy. This is because in spite of the deregulation in the whole economy. The banks are still kept in check always and forced to operate within the policies of the monetary authorities.
1.2 STATEMENT OF THE PROBLEM
In Nigeria, as in most other developing countries of the world, poor banking awareness (especially in the rural areas) and under-litches militating against economic development. This ugly trend is as a result of poor and under develop banking system which has been identified for long. Actually, failure to develop a favourable bank lending policies and implication was pointed out as a major short coming of the west African currency Board (WACB) promoting the establishment of the central bank of Nigeria in 1958.
It was in 1937 that internal autonomy was achieved another commission was set up. During this period the federal government engaged the service of another financial expert of the bank of England, Mr. J.B. Loynes, it was his recommendation that led to the establishment of the central bank of Nigeria by the central bank of Nigeria ordinance of 17th march, 1959. it commenced of N1.5million of which N1.25 million was the amount paid up what infact appears annoying is that since the establishment of central Bank, the problem has remained unsolved despite all efforts made so far to get the bank improved in tending policies in Nigeria.
According to Iheneta (1988) he said that banks should shoulder some more social responsibilities to the shareholders. “It must be realized that bank are not charitable organizations like the international Red Cross”. They are in business to make profit and have compelling responsibilities to the their shareholders.
More so, the urge to a standard investigative research. A competitive Analysis of commercial banks lending policies and their implications.
1.3 OBJECTIVE OF THE STUDY
The aim of this research work is to undertake an in-depth analysis of the implications of lending policies on borrowers, commercial banks and the economy as a whole. Other specific objectives include:.
i. Assessing the extent to which commercial banks comply with statutory allocation of credit to the different sectors of the economy view the central bank credit guidelines.
ii. To test the rigidity of the commercial banks lending policies and their effect on the borrowing customers.
iii. To draw out lines of credit offered by these banks and their appraised process, highlighting the environmental influence that impinges on commercial banks lending policies in Nigeria.
Lending is of paramount importance in the economic hence the research work will investigate lending policies and practices of commercial banking system with country, finding out how realistic set making recommendation and suggesting ways to ensure effective implementation of those policies to achieve the desire objectives.
1.4 definition of terms
i. What is a bank: This is a financial institution that deals with money, in form of receiving drawing against such deposits on demand, issue of cheque and lending to customers.
ii. Financial intermediation: This is defined as the process by which financial houses serving as mediators accepts savings from individuals and house holds and lend these savings to the users.
iii. Funds mobilization: This is the process by which financial intermediaries put idle funds into effective use by collecting savings from those who have surplus idle funds (Net savers) and making them available to other (Net borrower’s) who need them for investment.
iv. loanable funds: This defined as the amount of bank founds which it can lend to its customers (or the public) at a particular time after making provision for legal reserve requirement.
v. Monetary policy:- It is a policy which deals with the discretionary control of money supply by the monetary authorities in order to achieve started or desired economic goals.
vi. Lending policy: The establishment of the direction and use of the funds from stock holder depositions others to control the composition and size of the loan portfolio and the determination of the general circumstance under which it is appropriated to make a loan. it is specifically designed by the management of the bank by which as lending practices are designed and controlled.
vii. Effective lending: A quantum of lending which maximizes the bankers objectives of liquidating and profitability and the economy’s objective of development.
viii. Lending: The facilities which a bankers offers to his customers or non-customer on the ground that such facility will be returned to the banker offer a specified time, on payment of some changes by the customers.
ix. PLC: Public Limited Company
x. CBN: Central Bank of Nigeria
Xi. WACB: West African Currency Board
Xii UBA: United Bank Of African PLC
Xiii. UBU Union Bank Of 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 (#3000) into our bank Account below, send the following information to
08139462710 or 08137701720
(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:
08139462710 or 08137701720
YOU CAN ALSO CALL:
08068231953, 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
Tags: BANK CREDIT AND LENDING FUNCTION
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Back credit and lending function as we are aware evolved from a rather humble beginning as a result of the discovery made by the gold smith some continues ago, though only a small proportion of the money kept with him for security purpose was indeed required by the depositors at any one time and that he could safely lend the rest to borrowers and make interest charge thereon. The banking habit that latter inherited such practice felt that only about nine(9) to ten (10) percent of the bank deposit at a give time were therefore demand by the depositors.
However the commercial banks role of pooling funds together for the more surplus economics units to the deficit units of the country’s economy is what is regarded to as their leading function banks have in recent time been described as a machine of economic growth in an economy for the fact they perform this resources allocation function by mobilizing and channeling resources from savings surplus economic units to savings defeit units. In this position, they help in accelerating the trend of economic activities in various sectors of the economy, there by increasing the level of utility and wants of individuals and corporate bodies.
Well, as the above function is met, they would be more involved in the development of the economy because their raw material (money) is where other sector and sub-sector of the economy rotate.
More so, commercial banks have proved and are likely to remain the dominate financing intermediaries in Nigeria for they at present account for over 520 of the resources of the financial system to the economy and seemed to be more then units or sub-sectors able in all respects to influence the course of development.
This is why, not with standing the deregulation of the economy, banking is yet regarded as one of the most controlled or regulated in Nigeria. In monetary amendment guideline circular No 21 of January, 1987 the central bank of Nigeria (CBN) quoted as this in order to enhance the development of financial position and achieve a realistic resource allocation, the following change effected all control on interest rates were then removed in line tooth the emphresis on deregulation of the economy the second condition without in order to server as a signed to the desired direction of interest rate changes, the minimum rediscount rate would continue to be fixed by the central bank. This has gone further to show the benefits of commercial banks in the growth of the country’s economy. This is because in spite of the deregulation in the whole economy. The banks are still kept in check always and forced to operate within the policies of the monetary authorities.
1.2 STATEMENT OF THE PROBLEM
In Nigeria, as in most other developing countries of the world, poor banking awareness (especially in the rural areas) and under-litches militating against economic development. This ugly trend is as a result of poor and under develop banking system which has been identified for long. Actually, failure to develop a favourable bank lending policies and implication was pointed out as a major short coming of the west African currency Board (WACB) promoting the establishment of the central bank of Nigeria in 1958.
It was in 1937 that internal autonomy was achieved another commission was set up. During this period the federal government engaged the service of another financial expert of the bank of England, Mr. J.B. Loynes, it was his recommendation that led to the establishment of the central bank of Nigeria by the central bank of Nigeria ordinance of 17th march, 1959. it commenced of N1.5million of which N1.25 million was the amount paid up what infact appears annoying is that since the establishment of central Bank, the problem has remained unsolved despite all efforts made so far to get the bank improved in tending policies in Nigeria.
According to Iheneta (1988) he said that banks should shoulder some more social responsibilities to the shareholders. “It must be realized that bank are not charitable organizations like the international Red Cross”. They are in business to make profit and have compelling responsibilities to the their shareholders.
More so, the urge to a standard investigative research. A competitive Analysis of commercial banks lending policies and their implications.
1.3 OBJECTIVE OF THE STUDY
The aim of this research work is to undertake an in-depth analysis of the implications of lending policies on borrowers, commercial banks and the economy as a whole. Other specific objectives include:.
i. Assessing the extent to which commercial banks comply with statutory allocation of credit to the different sectors of the economy view the central bank credit guidelines.
ii. To test the rigidity of the commercial banks lending policies and their effect on the borrowing customers.
iii. To draw out lines of credit offered by these banks and their appraised process, highlighting the environmental influence that impinges on commercial banks lending policies in Nigeria.
Lending is of paramount importance in the economic hence the research work will investigate lending policies and practices of commercial banking system with country, finding out how realistic set making recommendation and suggesting ways to ensure effective implementation of those policies to achieve the desire objectives.
1.4 definition of terms
i. What is a bank: This is a financial institution that deals with money, in form of receiving drawing against such deposits on demand, issue of cheque and lending to customers.
ii. Financial intermediation: This is defined as the process by which financial houses serving as mediators accepts savings from individuals and house holds and lend these savings to the users.
iii. Funds mobilization: This is the process by which financial intermediaries put idle funds into effective use by collecting savings from those who have surplus idle funds (Net savers) and making them available to other (Net borrower’s) who need them for investment.
iv. loanable funds: This defined as the amount of bank founds which it can lend to its customers (or the public) at a particular time after making provision for legal reserve requirement.
v. Monetary policy:- It is a policy which deals with the discretionary control of money supply by the monetary authorities in order to achieve started or desired economic goals.
vi. Lending policy: The establishment of the direction and use of the funds from stock holder depositions others to control the composition and size of the loan portfolio and the determination of the general circumstance under which it is appropriated to make a loan. it is specifically designed by the management of the bank by which as lending practices are designed and controlled.
vii. Effective lending: A quantum of lending which maximizes the bankers objectives of liquidating and profitability and the economy’s objective of development.
viii. Lending: The facilities which a bankers offers to his customers or non-customer on the ground that such facility will be returned to the banker offer a specified time, on payment of some changes by the customers.
ix. PLC: Public Limited Company
x. CBN: Central Bank of Nigeria
Xi. WACB: West African Currency Board
Xii UBA: United Bank Of African PLC
Xiii. UBU Union Bank Of 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 (#5000) into our bank Account below, send the following information to
08139462710 or 08137701720
(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:
08139462710 or 08137701720
YOU CAN ALSO CALL:
08068231953, 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
Tags: BANK CREDIT AND LENDING FUNCTION
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Back credit and lending function as we are aware evolved from a rather humble beginning as a result of the discovery made by the gold smith some continues ago, though only a small proportion of the money kept with him for security purpose was indeed required by the depositors at any one time and that he could safely lend the rest to borrowers and make interest charge thereon. The banking habit that latter inherited such practice felt that only about nine(9) to ten (10) percent of the bank deposit at a give time were therefore demand by the depositors.
However the commercial banks role of pooling funds together for the more surplus economics units to the deficit units of the country’s economy is what is regarded to as their leading function banks have in recent time been described as a machine of economic growth in an economy for the fact they perform this resources allocation function by mobilizing and channeling resources from savings surplus economic units to savings defeit units. In this position, they help in accelerating the trend of economic activities in various sectors of the economy, there by increasing the level of utility and wants of individuals and corporate bodies.
Well, as the above function is met, they would be more involved in the development of the economy because their raw material (money) is where other sector and sub-sector of the economy rotate.
More so, commercial banks have proved and are likely to remain the dominate financing intermediaries in Nigeria for they at present account for over 520 of the resources of the financial system to the economy and seemed to be more then units or sub-sectors able in all respects to influence the course of development.
This is why, not with standing the deregulation of the economy, banking is yet regarded as one of the most controlled or regulated in Nigeria. In monetary amendment guideline circular No 21 of January, 1987 the central bank of Nigeria (CBN) quoted as this in order to enhance the development of financial position and achieve a realistic resource allocation, the following change effected all control on interest rates were then removed in line tooth the emphresis on deregulation of the economy the second condition without in order to server as a signed to the desired direction of interest rate changes, the minimum rediscount rate would continue to be fixed by the central bank. This has gone further to show the benefits of commercial banks in the growth of the country’s economy. This is because in spite of the deregulation in the whole economy. The banks are still kept in check always and forced to operate within the policies of the monetary authorities.
1.2 STATEMENT OF THE PROBLEM
In Nigeria, as in most other developing countries of the world, poor banking awareness (especially in the rural areas) and under-litches militating against economic development. This ugly trend is as a result of poor and under develop banking system which has been identified for long. Actually, failure to develop a favourable bank lending policies and implication was pointed out as a major short coming of the west African currency Board (WACB) promoting the establishment of the central bank of Nigeria in 1958.
It was in 1937 that internal autonomy was achieved another commission was set up. During this period the federal government engaged the service of another financial expert of the bank of England, Mr. J.B. Loynes, it was his recommendation that led to the establishment of the central bank of Nigeria by the central bank of Nigeria ordinance of 17th march, 1959. it commenced of N1.5million of which N1.25 million was the amount paid up what infact appears annoying is that since the establishment of central Bank, the problem has remained unsolved despite all efforts made so far to get the bank improved in tending policies in Nigeria.
According to Iheneta (1988) he said that banks should shoulder some more social responsibilities to the shareholders. “It must be realized that bank are not charitable organizations like the international Red Cross”. They are in business to make profit and have compelling responsibilities to the their shareholders.
More so, the urge to a standard investigative research. A competitive Analysis of commercial banks lending policies and their implications.
1.3 OBJECTIVE OF THE STUDY
The aim of this research work is to undertake an in-depth analysis of the implications of lending policies on borrowers, commercial banks and the economy as a whole. Other specific objectives include:.
i. Assessing the extent to which commercial banks comply with statutory allocation of credit to the different sectors of the economy view the central bank credit guidelines.
ii. To test the rigidity of the commercial banks lending policies and their effect on the borrowing customers.
iii. To draw out lines of credit offered by these banks and their appraised process, highlighting the environmental influence that impinges on commercial banks lending policies in Nigeria.
Lending is of paramount importance in the economic hence the research work will investigate lending policies and practices of commercial banking system with country, finding out how realistic set making recommendation and suggesting ways to ensure effective implementation of those policies to achieve the desire objectives.
1.4 definition of terms
i. What is a bank: This is a financial institution that deals with money, in form of receiving drawing against such deposits on demand, issue of cheque and lending to customers.
ii. Financial intermediation: This is defined as the process by which financial houses serving as mediators accepts savings from individuals and house holds and lend these savings to the users.
iii. Funds mobilization: This is the process by which financial intermediaries put idle funds into effective use by collecting savings from those who have surplus idle funds (Net savers) and making them available to other (Net borrower’s) who need them for investment.
iv. loanable funds: This defined as the amount of bank founds which it can lend to its customers (or the public) at a particular time after making provision for legal reserve requirement.
v. Monetary policy:- It is a policy which deals with the discretionary control of money supply by the monetary authorities in order to achieve started or desired economic goals.
vi. Lending policy: The establishment of the direction and use of the funds from stock holder depositions others to control the composition and size of the loan portfolio and the determination of the general circumstance under which it is appropriated to make a loan. it is specifically designed by the management of the bank by which as lending practices are designed and controlled.
vii. Effective lending: A quantum of lending which maximizes the bankers objectives of liquidating and profitability and the economy’s objective of development.
viii. Lending: The facilities which a bankers offers to his customers or non-customer on the ground that such facility will be returned to the banker offer a specified time, on payment of some changes by the customers.
ix. PLC: Public Limited Company
x. CBN: Central Bank of Nigeria
Xi. WACB: West African Currency Board
Xii UBA: United Bank Of African PLC
Xiii. UBU Union Bank Of 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
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Tags: BANK CREDIT AND LENDING FUNCTION
