THE ROLE OF BANKS IN FINANCING SMALL SCALE BUSINESS IN NIGERIA A CASE STUDY OF AGBARHO MICRO FINANCE BANK LTD

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND FOR THE STUDY

Banks are in the Business of accepting deposit from the public and on lending those funds to borrowers and make profit in return. Banks therefore as a custodian of depositors funds will from time to time have to repay usually on demand, the money that those depositors have placed with the bank and so must ensure that any money that they have lent to borrowers can be safely repaid within a short period of time and is profitable to the Bank.
The oxford English Dictionary defined a bank as an establishment for the custody of money which it pays out on a customer order.
A bank can also be defined as a dealer in debt. This definition which aptly describes the activities of the bank is more appropriate than the dictionary definition. A bank note is a sort of promissory note an acknowledgement of the issuing banks debt to whomsoever maybe the bearer of it by means of loans and overdrafts a bank create debts to itself. All these and other forms of debts from the stock in trade of modern banks.
More so, Banking service are not other convince not cheap and not easily assessable by the member of the public. This is why many banks finds it difficult to mobilize domestic savings and giving effective lending service to their customers undoubtedly many banks customers may be suffering in silence due to limited service of the banks.

STATEMENT OF THE PROBLEM
In the course of this study, the researcher wants to examine or investigate what benefits that are derived from the banks and also the problems encountered by banks
Why is it that many Banks (commercial Banks) go into liquidation?
Does a bank really finance small scale business?
Why is it that small scale Business finds it difficult to obtain credits from the bank?