TABLE OF CONTENT
Title page
Certification page
Dedication
Acknowledgement
Table of Content
CHAPTER ONE: INTRODUCTION
- Statement of Research
- Background of the Study
- Objective
of the Study
- Significance of the Study
- Research methodology
- Definition
of terms
- Plan of the Study
CHAPTER TWO: LITERATURE REVIEW
- Historical Background of Wema Bank of Plc of Nigeria
- Function
of the various Department
- Central Bank and Credit Creation of commercial bank
- Procedure
of creating credit facility
- Credit management in commercial bank
- Steps in Credit Management
- Principles and practices building lending at Wema
Bank Plc
2.8 Credit administration and securities acceptance
to Wema Bank Plc
CHAPTER THREE: RESEARCH METHODOLOGY
- Method of Data Collection
- Sampling Techniques
- Sampling Techniques
- Limitation of the Methodology
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
- Introduction
- Data Presentation
- Data Analysis
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
- Observation
- Summary
- Conclusion
- Recommendation
Reference:
ABSTRACT
This research work is centralized on the problem and prospects of credit creation by Nigeria commercial banks with special reference to Wema bank plc Ilorin it attempts to implore the problem and respects of credit creation by Nigeria commercial bank to achieve maximum creation of credits, the research will be divided into five chapters for easy understanding of the entire work chapter one is termed general introduction which comprises background to the study on how credit creation is established. Chapter two is termed literature review in this chapter we intend to survey the various opinion and view of scholars on the different aspect of the relationship between the management of the commercial banks in Nigeria and their performance. Chapter three is discuss research methodology in this chapter we intend to take a brief of the historical background of the problem and prospects of credit creation and examine the business objectives and at the same time appraises its creation and decision making chapter four is date analysis of data collected for this study both orally and through questionnaire and observation, chapter five is termed summary of finding in this chapter observation were made on opinions of respondents and also suggest recommendations and conclusion were draw in this chapter.
CHAPTER ONE
1.1 INTRODUCTION
A commercial bank be defined as a dealer in money and credit, holding it and receiving from the public, deposits respectable on demand by cheque or their withdrawal instrument.
The idea of a banking system was introduced Nigeria in 1892 with the establishment of Africa banking co- operation. Another one was introduced in 1894 which was named British West African Bank.
The British West Africa Bank was later changed to chase
merchant bank to become standard bank of Nigeria. In 1899, Bank of 1917, it was taken to
Nigeria and came into existence but later, it was taken over by the bank of British West Africa in
1912. In 1917 it was the establishment of Barclays Bank.
The
first indigenous bank and that came into existence in 1929, with the name
industrial and commercial
Bank. Also, 1934 witnessed the establishment of Nigeria merchant Bank.
Although, it was
later closed down due to lack of funds, Bad management coupled with large scale
corruption.
Furthermore, the national bank of Nigeria was established on a sound footing but, due to greater post- war activities, the bank was close down. In addition, between 1945 and 1947, four indigenous banks were Africa continental bank (ACB) and Agbonmogbe Bank which was now called Wema Bank PLC.
It
was a booming era between 1951 and 1952 because eight banks were established.
But in 1951 seven banks closed
down only Mercantile Bank survive. It was not that the way surviving bank out
of the seven that close down in 1954 had is license withdraw by the state
government funds.
All banks in Nigeria
were either owned by the state government or the federal government. But this trend did not continue to the policy of revitalization
and commercialization embarked upon during the Banbangida administration in 1989.
Commercial
bank play very important role in the allocation of fund to individuals and
business organization in the society.
One of the principal function of commercial bank is the creation of credit facilities which is the process of distributing and disbursing of fund to potential user at favorable terms and conditions and making sure that fund are effectively utilize to ensure the anticipation benefit to borrowers and lending bank.
Credit facilities are being enjoyed by the account holder i.e
individual and business organization respectively. It can be listed that traditional function
of bank is financial intermediate i.e their real role is concerned with the
monetary aspect of the economy which involve the mobilization of fund from
savers scattered in the society and their transfer
as credit to investors.
There were many average business entrepreneurs who could
not or were unable to raise enough funds from their trade for expansion purpose or from
other sources like through friends and others.
Their
last result therefore is to source for fund.
1.1 STATEMENT OF RESEARCH
The focus of this study by the researcher is to identify the problems and prospects of credit creation by Nigeria Commercial Banks. In course of the study, effort has been made to find solution to the following research problems.
- What
is the historic cal background of Credit creation by Nigeria Commercial Banks?
- What
are the reasons for credit creation in Nigeria?
- What are
the impacts of commercial banks on credit creation?
- What is the effect of
credit creation on Nigeria economy?
- What
is the impact of prospect on Nigeria Commercial Banks?
- What
are the steps involved in the successful commercial Bank?
- What
are the likely problems facing the development of credit creation by Nigeria
commercial banks?
1.2 OBJECTIVES OF THE STUDY
The objective of this
research is to know the purpose of-creating credit by commercial banks which include the following.
i. To Increasing the purchasing power of the
people.
ii. To
Increasing the volume of money in circulation.
iii. To it enhance industrial expansion.
iv. To it helps businessman in his day to day activities
v. It helps in development of agricultural
sector
vi. It helps in facing both and home trade
1.3 SIGNIFICANCE OF THE STUDY
On completion of this work, the outcome has to the
existing literature of problem and prospect of credit creation by commercial bank and guide for future
researchers on this topic.
It also spelt out the importance of commercial Bank in Nigeria.
The
entrepreneur and businessmen will also more enlightening on the function of
various department of Wema Bank on how to contact
debtors on the repayment of the debts and also to lies with the legal department in case of bad debt.
While the
Banks will also benefit from the research work with respect to the problem
& prospect of credit creation and
accepting of deposit by commercial Banks.
1.4 LIMITATION OF THE STUDY
The
research intent to carry out research work on the problem and prospects of
credit creation by Nigerian Commercial banks with special banks with special
emphasis on Wema Bank Plc.
The
research is in research methodology which has been constraint to sufficient chosen
as a
study was visited to collect the necessary
materials and interview a cross- section of their customs.
1.6 DEFINITION
OF TERMS
- Credit
cash:- The bank advances
loans to businessmen against certain specified securities,
- Bank:- Is an institution which accept
deposit from public and in turn advance loans by creating
credit.
iii. Advance and loan:- Is the way of lending or giving out advance or loan to the customer of the bank for specific period with the pattern of repayment in specific time. There are three types of advance and loan.
a. Medium, term loan
b. Short term
loan
c. Long term loan
iv.
Over draft: – This is a
situation when customer withdraws more than what is in his account e.g. customer has £f500 in him bank deposit and
withdraw &1000. Overdraft can be arranged by the bank to the customer. If
the customer require for it is up to maximum limit.
v. Money Market: – These are market for short term investment. It has no physical market place it brings banks and dealer linked together by telex, telephone and computer.
vi. Discount
rate: – These are the rate used to calculate the present value of future
cash flows, vii. Deposit:- This
is a situation whereby the banks accepts deposit of money from their customer
for proper safe keeping in their custody. Banks accept three kind of deposit
account from its customer.
- Saving-account: – This is a situation whereby bank small interest for the depositions who are small they make use of cheque book.
- Current account: – These are account operated by businessmen. The bank does not pay interest on such account but instead charges a normal sum service rendered to its customer,
- Fixed or time deposit account:- Saver who do not need money to stipulated period 6 month or two year or more are encourage to keep in fixed deposit account, the bank paid higher rate of interest on such deposits.
PROBLEM PROSPECTS OF CREDIT CREATION BY NIGERIA COMMERCIAL BANKS (A CASE STUDY OF WEMA BANK PLC, ILORIN)
