The aim of every government is to provide its people with basic
services, leadership and protect the entire people’s interest within
its power, for a government to do this, it must have a sound and
adequate financial planning to make it possible to cater for the
To a large extent, any government which comes into power has to
depend on banks and other financial institution for keeping of some of
its development project also, the government agencies and general pubic
depends largely on loan from the banks to carry out their day to day
Generally, the main aim of every bank is to minimize the last to
running affairs of the bank and at the same time maximizes owner’s
profit. Some bank like the Central Bank of Nigeria (CBN) and
development banks, the farmers have the main aim of correcting the
economy while the later one established purposely to develop some
sector of the economy.
Note: Eg. Industry, agriculture etc. This bank despite the fact that they make profit, they are not profit oriented.
Therefore, this research is based on the role played by commercial banks to the Nigeria economy with particular interest.
1.1 STATEMENT OF GENERAL PROBLEM
The present improvement in the banking industry may not wholly
attributed to the rapid increase in the number of banks but is the
rapid growth of our economy that brought about by the structural
adjustment programme (SAP)
Though banking industry plays an important role in the economy of
any nation and there is no doubt, it is an indispensable role to the
With these, this not to say that they do not have lapses.
Among the factors that leads to the inefficiency in the banking industry
- FINANCIAL DISTRESS
Financial distress in the Nigeria financial system is a problem that has of recent, assume an intractable dimension.
- BAD MANAGEMENT
The singular factor leaves a high stone of management which
usually determine by academic/professional qualification, relevant
experience, technical know how, business reflect, ability to formulate
and implement good policies, leadership qualities and styles etc.
Because of the relative attractiveness of banking especially with
respect to the pay and prospect, people from different professions find
themselves in the mid system of banking operations without proper
grooming the fact that banking is a district profession of its own with
intricacies and idiosyncrasies.
c. INADEQUATE CAPITAL BASES
There is a saying that says a lifeguard in a swimming pool must
himself be a good swimmer, for a bank to enjoy confidence of
depositors, it must have strong capital base as evidence of strength.
It is important that bank operates profitably for the share holders
have to increase through accreting to statutory and general in
d. RISK ASSET PORT FOLIO
This is no doubt a reflection of poor management most banks do not
have clear investment or credit policy and there is absolutely no
control on credit. In most cases, it is the managing director or
chairman or the promoters of these banks who have lending power and they
lend mainly to their own business and to friends without business or
without following the due assessments or control.
e. BOARD ROOM CRISIS
It is unfortunate that a business which begins in a
spirit of annuity and cordially at times turns into loss of face and
tension among the sponsor. Problems have in the past arisen on such
topic as who plays what roles and people instability to concede to
another, people opinion have cause dissentients in the board room even
physical France as autocracy on the part of those who see themselves as
the promoters or major shareholders can often cause board room crisis.
The monetary authorities had to be carried into the management of some
banks when things get out of hand until the crisis is over. Board
members engage in protected legal battles and by the end of the day who
loses? The rest of us.
1.2 AIMS AND OBJECTIVES OF THE STUDY
The aims and objectives of this research work is to
investigate into the role-played by the commercial banks, which cannot
be over emphasized in the economic development of Nigeria.
The purpose of carrying out this research work is to:
- Present a detailed and clear picture of the role
played by commercial bank in the economic development of Nigeria.
Example of what extort commercial banks have fulfilled their roles in
- Expose factor, which affect and determine the role of commercial banks in the development of the Nigeria economy.
1.3 SIGNIFICANCE OF THE STUDY
The significance of the essay is therefore based on
- Identifying and analyzing advises to commercial banks on how to apply the economic situation in Nigeria.
- Also in identifying, analyzing and providing advises
to the government and central bank of Nigeria on how to adjust or
improve the banking regulations.
- It is also hoped that the findings of this research
work regardless of its limitation would give the banking industries an
insights knowledge of identifying ways to improve customer services in
terms of economic development.
- In enlightening customers of services available which are unknown to them.
1.4 SCOPE OF THE STUDY
The research specifically covers comprehensively the
analysis of the major role played by the banking industry to the
Nigeria economy. The primary responsibilities of all types of banks
that we have in the industry have been touched in the literature
Generally, the author attempted to examine their role of
commercial bank to the economy, though there are several financial and
banking industries nation wide, I will limit my research to first bank
of Nigeria Plc. To represent the banking industry. I particularly
consider the sources of fund to the bank and how these fund are fully
utilized to make its own contributions to our national development and
at the same time, maximize owner’s profit.
- DEFINITION OF TERMS
The business receiving money from outside as deposit for
safe keeping and making payment accrued which the money is due for
payment and also advancing loans to those who keeps money for safe
keeping as well as the public at large.
Is a period during which transactions takes at the end and in which settlement must be made
These refers to group of persons who receive money from
individuals for safe keeping in the agreement that he will refund the
said amount collected either on demand or at some certain date agreed
It is an order written by the owner to the banker to pay on demand to the bearer of the cheque.
e DISHONORED CHEQUE
A cheque, which the bank refused to attend to for one
reason or the other e.g irregular signature, post dated cheque etc.
The amount of money that is lend out and that must be
repaid within an agreed rate of interest usually for specific period of
g. PASS BOOK
It supplied to the customer by the bank in which all
entries are made of all deposits and withdrawals that are made.
h. UNPRESENTED CHEQUE
These are cheque drawn by the drawer but not yet presented for payment by the bearer.
Is usually created on a current account unlike a loan
account where only periodical payments are made. An overdraw account
is a running account where drawing and deposits are made. An
overdraft account is a running account where drawing and deposits are
made. In an overdraft account as frequently as may be needed or
received in connection with the business to meet the account related.
A Research proposal for the role of commercial banks inthe economic development of nigeria:
A Review on the role of commercial banks inthe economic development of nigeria, role, commercial, banks project topics, researchcub.info, project topic, list of project topics, research project topics, journals, books, Academic writer.
The singular factor leaves a high stone of management which usually determine by academic/professional qualification, relevant experience, technical know how, business reflect, ability to formulate and implement good policies, leadership qualities and styles etc. Because of the relative attractiveness of banking especially with respect to the pay and prospect, people from different professions find themselves in the mid system of banking operations without proper grooming the fact that banking is a district profession of its own with intricacies and idiosyncrasies... co-operative economics project topics
THE ROLE OF COMMERCIAL BANKS INTHE ECONOMIC DEVELOPMENT OF NIGERIA