TABLE OF CONTENTS
Title page
Certification page
Dedication
Acknowledgement
Table of Content
CHAPTER ONE:
INTRODUCTION
1.1
Statement of
Research
1.2
Background of the
Study
1.3
Objective of the Study
1.4
Significance of
the Study
1.5
Research
methodology
1.6
Definition of terms
1.7
Plan of the Study
CHAPTER TWO:
LITERATURE REVIEW
2.1
Historical
Background of Wema Bank of Plc of Nigeria
2.2
Function of the various Department
2.3
Central Bank and
Credit Creation of commercial bank
2.4
Procedure of creating credit facility
2.5
Credit management
in commercial bank
2.6
Steps in Credit
Management
2.7
Principles and
practices building lending at Wema
Bank Plc
2.8 Credit administration and securities acceptance
to Wema Bank Plc
CHAPTER THREE:
RESEARCH METHODOLOGY
3.1
Method of Data
Collection
3.2
Sampling
Techniques
3.3
Sampling
Techniques
3.4
Limitation of the
Methodology
CHAPTER FOUR: DATA
PRESENTATION AND ANALYSIS
4.1
Introduction
4.2
Data Presentation
4.3
Data Analysis
CHAPTER FIVE: SUMMARY, CONCLUSION AND
RECOMMENDATION
5.1
Observation
5.2
Summary
5.3
Conclusion
5.4
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
i.
Credit cash:- The bank advances loans to businessmen against certain
specified securities,
ii.
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.
i.
Saving-account:
- This is a situation
whereby bank small interest for the depositions who are small they make use of cheque book.
ii.
. 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,
iii.
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.
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