THE PROBLEMS AND PROSPECTS OF CREDIT CREATION IN THE BANKING INDUSTRY IN NIGERIA
TABLE OF CONTENT
Title of Page i
Table of Content vi-vii
- Introduction 1 Background of the Study 1-21.2 Statement of the Problem 2
1.3 Research Question / hypothesis 2-3
1.4 Purpose of the Study 3
1.5 Scope of the Study 3
1.6 Limitation of the Study 4
1.7 Significance of the Study 4
1.8 Definition of Term 5
- Literature Review 6-82.1 The Problem and Prospect of Credit in banking Industry 8-102.2 Procedure for Creating Credit Facility in Banking Industry. 10
2.3 Reason for Credit Creation in Commercial Bank 11
2.4 Steps in Credit Planning in Commercial Bank 11
2.5 Principle and Practice Guiding Lending at WEMA BANK 11-12
2.6 Credit Administration & Securities Acceptance To WEMA BANK PLC. 13-14
- Research Methodology 1 Research Design 153.2 Area of the Study 16
3.3 Population of the Study 16
3.4 Sample and Sampling Techniques 16
3.5 Instrument of Data Collection 17
3.6 Method of Data Collection 17
3.7 Method of Data Collection 18
- Data Presentation Analysis & Interpretation 1 Data Presentation Analysis 19-214.2 Testing of Hypothesis 22
4.3 Finding & Interpretation of Result 22-23
- Summary, Conclusion and Recommendation 1 Summary 245.2 Conclusion 25
5.3 Recommendation 25-26
1.1 BACKGROUND OF THE STUDY
Commercial Banking operation in Nigerian started sometimes in 1891 when it become apparent that banking facilities was urgently needed especially. IN 1892, THE African Banking Corporation – the first commercial bank in Nigeria was established to cater for the distribution of Bank of England notes on behalf of the British treasury. The bank later wound up its operation in 1892, and in 1893, Elder Dempster and Co. were approached and through the initiative of Sir Alfred Jones, another Bank was opened the Bank of British West Africa (B.B.W.A) in 1893, the bank was thus registered in England as a Limited Liability Company on 31st March 1894. its Head Office was in Liverpool (with a staff of only two). The Lagos branch office was also opened in the same year.
The credit creation in the banking industry in Nigeria handled the import and export of mint coins, until 1959 when the Central Bank of Nigeria was established.
Commercial bank can be defined as dealer in money and credit holding itself out to receive from the public, deposits repayable on demand by cheque. The National Bank of Nigeria was established on a sound footing due to greater post activities, the bank had to close down, between 1915 and 1947, four indigenous banks was setup only to show and survived, the two banks that survival were African Continental Bank (ACB) and Agbon-magbe Bank which is now called Wema Bank of Nigeria Plc.
Commercial banks play an important role in the allocation of funds to individual and business organization in the society. One of the principal functions of Wema Bank in the creation of credit facilities which is the process of distributing of fund to potential utilized to ensure that anticipated to fits to the borrower and lending bank.
Credit facilities are being enjoyed by the account holders individuals and co-operate bodies, monetary aspect of the economy which involves the mobilization of founds from their trade for expansion purpose from other sources through friends and others, their last result is to source for funds from the government bank which play with attention to the flight of the leader.
- STATEMENT OF THE PROBLEM
In the course of study, a close critical examination of commercial banks in Nigeria reveal that commercial banks help their customers in the provision of banking services in Banking Industry it is also noted that all banks are profit oriented and thereby fail to meet up with their customers in the provision of banking services in Banking Industry it is also noted that all banks are profit oriented and thereby fail to meet up with their customer’s demand. There is also unhealthy compilation in the industry, which has made it difficult for banks to perform necessary function to their respective customers.
The problems of credit creation in the Banking Industry makes the researcher to note that the objective of banks to meet up with their customers services go in a long way to achieve the stated objective of banking system. Liquidity which is highly important to meet with customers demand as a result of this problem in this sense, the study is set up to find out what were responsible for that failure and offer suggestion on how bringing desirable improvement in Banking Industry.