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.
1.7
PLAN OF THE STUDY
The research work has been divided into five
chapters for easy presentation of the fact and figures gathered. The first chapter extensively deals with introduction or
background of the study, statement of the
problem, Aims and objectives of the study, significance of the study, scope and
limitation and definition of key
terms.
Chapter two treated past
and current literature review, Chapter Three will highlight research methodology Chapter four discusses Data
Presentation of analysis data.
Chapter five finally throws light on the summary, conclusion and recommendations.
THE PROBLEM PROSPECTS OF CREDIT CREATION BY NIGERIA COMMERCIAL BANKS (A CASE STUDY OF WEMA BANK PLC, ILORIN)
