The Role Of Commercial Banks In The Face Of A Depressed Economy (A Case Study Of First Bank Nigeria Plc)

The Role Of Commercial Banks In The Face Of A Depressed Economy (A Case Study Of First Bank Nigeria Plc)

Chapter One

Preface

Background Of The Study

Having chosen this content to write on, my objects is to find out the places played by our marketable banks in our present profitable situation whether they being followed in this time of profitable recession their goods on the frugality and the extents to which they’ve gone in helping to revamp the frugality. marketable banks.

The literal background or theses marketable bank are made up of banking andnon-banking institutions.

The literal background of these marketable bank is mode of operation which is an important aspect of this study. By their literal background. We can now know the points purpose, objects of these marketable bank in our frugality. In 1st July 1959, the first central bank of Nigeria(C.B.N) which was the apere bank that control other marketable bank in the country was established. marketable bank is the oldest of all banking institutional in Nigeria, it dates back to 1892 when. It was known as the bank of British West Africa( Now First bank of Nigeria) was established. This was followed in 1917 by the Barchys bank( Dominidu, colonia and overseas)( DCO)( Now union bank in 1933. the first successful Indigenous marketable bank was named National bank of Nigeria was established in 1948. African international bank( ACB) was established by 1960 at independent, these were( 12) twelve banks operating in the country with a total number of 160 services and branches scattered in different locales of the country.

numerous technical credit instutitons have in the once two and half decades developed. These includes the Nigeria Merchant banks, Nigeria artificial development bank( NIDB) Nigeria bank for commerce and assiduity( NACB) established 1973 and restructured in the 1978 to include the finance of united bank established in the civil mortgage bank of Nigeria constitution in July, 1977, trafficker banks also are fairly new business which were reverie to 1960 when First bank Nigeria PLC was established. TheNon-bank marketable bank includes finance companies, the oldest finance Ltd was established in 1959.

also insurance companies, also first insurance companies were 1921 and was named Royal exchange Assurance company, investment companies unit trust, united societies which have its foundation from the establishment of united stores in 1844 in Britain, its origin in Nigeria banks to the eighteen( 18th) century Bureax De change which was establish in 1989 though the decree that the same your and persen provident fund.

It’s the desire of all these marketable banks to to produce an impact on the Nigeria frugality. Also the citizen’s expectant from all these marketable bank is to see the places played by these marketable bank in our present profitable situations.

Statement Of The Problem

In view of the depressed frugality, there are racked practices which disturbs marketable banks in carrying out their places for the growth of the frugality. Those practices are as fellows below

1) Lack of capability to supply finances( Loan) to the small scales diligence( Business)

2) The incapability to offer interest yielding fiscal instruments.

3) The incapability to effectively manger the fiscal aspect of the frugality.

Objects Of The Study

The objects of the study is to find out whether the part is perfecting the growth and development of Nigeria frugality is being played efficiently and effectively and those effects that gives torture in the system. Another ideal was to know orX-ray what the government is doing to maintain any marketable bank in a depressed frugality like Nigeria and break the problem if any and also answered the problem of low productivity. And severance in the frugality at large. And also in partial fulfillment of my public parchment( ND)

Significance Of The Study

The exploration design is more important to the marketable banks and department of the central bank of Nigeria, colorful marketable banks in Nigeria and it’ll also serve as readable material for farther exploration.

It’s necessary for lectures( preceptors) and workers in relation to this study. It’s important to pupil taking courses in accountant, banking and finance and economics to have ultramodern approach to the tutoring and understanding the marketable banks in which they will find interest in.

Compass Of The Study

The exploration design is designed to cover the places of marketable banks in the development of the frugality. It shall cover both the present and once period of marketable banks in Nigeria. For easier collection of data some banks particularly marketable banks will be examined for the exploration.

Exploration Question

i) Does marketable bank( Banks) engage themselves in conditioning that help to develop the frugality?

ii) Does the banks regulation have any effect on the places of marketable bank as they play in the frugality?

iii) Does long- term borrowing affect the part of marketable bank in a depressed frugality?

iv) Is the donation of fiscal finances to banks enough to be felt at well as stimulating the frugality?

Exploration Thesis

The oxford advanced learners dictionary defined thesis as suggestion or idea the is grounded on know data and is used as base for logic or farther disquisition. For the purpose of this study, the thesis shall be anatomized in order to prove their position of rejections and acceptance. These are thesis which were used.

Ho There’s no significant relationship between fiscal

institutions and profitable development.

Hi There’s significant relationship between fiscal

Institution and profitable development.

Ho There’s no significant relationship between fiscal

institutions and perpetration of government programs

Hi There’s a significant relationship between fiscal

institutions and perpetration of government programs

Limitations Of The Study

I wish to express my difficulties which I encountered when collecting information through the questionnaires

The present energy price increase was a major limited as it made transportation to these banks and libraries relatively delicate.

Besides times and fiscal constraints, some other factors that militated against this exploration systems includes

1. Lack of books The compass of its work was alternatively affected because of failure of books in the applicable areas.

2. station constraints In the case of the questionnaire, some blatantly refused to collect it to gill while those that collected tool a lot of time to fill the needed answers. Some fill them aimlessly.

3 Bureautic constraints Under this limitation concrete attempt made to solicit or reach top functionary failed because of redtaptism in running sanctioned engagements and procedures in releasing the functionary or secret of the company.

Description Of Terms

marketable bank it may be defined as unit or sectors which mustered sailing and allocate them into investment systems for this study, I shall take them as those institutions which gather together fiscal coffers from overpluses sector to pump into the deficiency sectors for profitable development.

ii. Modus operand This means the mode of operation in the marketable bank.

iii. fiscal intermediation these are marketable banks which match the deposit demand of saviors with the investment conditions of the borrowers.

iv. Savings it constitutes that part of income not spent on consumption or expenditure on goods or services. But for in purpose of this design, saving will be taken as that part of total income not spent on immediate consumption but is set towards emphasis of capital for farther deals.

Non-Banks In this design, non banks on marketable banks includes insurance companies, investment companies unit trust, united societies, Bureax De change, primary mortgage institutions and pension and provident fund all these arenon-banks, marketable banks which help in profitable growth of a depressed frugality.