This research was carried
out to focus attention on the Problem and Prospect of Credit Creation in Banking
Industry. Using Wema Bank Plc as a case study.
This function reveals the
problems and prospect associated with the credit creation services and the
causes of it.
Title of Page i
Table of Content vi-vii
of the Study 1-2
of the Problem 2
Question / hypothesis 2-3
of the Study 3
of the Study 3
of the Study 4
of the Study 4
of Term 5
Literature Review 6-8
Problem and Prospect of Credit in banking Industry 8-10
for Creating Credit Facility in Banking Industry. 10
for Credit Creation in Commercial Bank 11
in Credit Planning in Commercial Bank 11
and Practice Guiding Lending at WEMA BANK 11-12
Administration & Securities Acceptance To WEMA BANK PLC. 13-14
Research Methodology 15
3.2 Area of
the Study 16
of the Study 16
and Sampling Techniques 16
of Data Collection 17
of Data Collection 17
of Data Collection 18
Data Presentation Analysis & Interpretation 19
Presentation Analysis 19-21
of Hypothesis 22
& Interpretation of Result 22-23
Summary, Conclusion and Recommendation 24
5.1 Summary 24
5.2 Conclusion 25
5.3 Recommendation 25-26
OF THE STUDY
Commercial Banking operation
in Nigerian started sometimes in 1891 when it become apparent that banking
facilities was urgently needed especially. IN 1892, THE African Banking
Corporation – the first commercial bank in Nigeria was established to cater for
the distribution of Bank of England notes on behalf of the British treasury.
The bank later wound up its operation in 1892, and in 1893, Elder Dempster and
Co. were approached and through the initiative of Sir Alfred Jones, another
Bank was opened the Bank of British West Africa (B.B.W.A) in 1893, the bank was
thus registered in England as a Limited Liability Company on 31st
March 1894. Its Head Office was in Liverpool
(with a staff of only two). The Lagos
branch office was also opened in the same year.
The credit creation in the banking industry in Nigeria handled
the import and export of mint coins, until 1959 when the Central Bank of Nigeria was
Commercial bank can be defined as dealer in money and
credit holding itself out to receive from the public, deposits repayable on
demand by cheque. The National Bank of
Nigeria was established on a sound footing due to greater post activities, the
bank had to close down, between 1915 and 1947, four indigenous banks was setup
only to show and survived, the two banks that survival were African Continental
Bank (ACB) and Agbon-magbe Bank which is
now called Wema Bank of Nigeria Plc.
Commercial banks play an important role in the allocation
of funds to individual and business organization in the society. One of the
principal functions of Wema Bank in the creation of credit facilities which is
the process of distributing of fund to potential utilized to ensure that
anticipated to fits to the borrower and lending bank.
Credit facilities are being enjoyed by the account holders
individuals and co-operate bodies, monetary aspect of the economy which
involves the mobilization of founds from their trade for expansion purpose from
other sources through friends and others, their last result is to source for
funds from the government bank which play with attention to the flight of the
OF THE PROBLEM
In the course of
study, a close critical examination of commercial banks in Nigeria reveal that
commercial banks help their customers in the provision of banking services in
Banking Industry it is also noted that all banks are profit oriented and
thereby fail to meet up with their customers in the provision of banking
services in Banking Industry it is also noted that all banks are profit
oriented and thereby fail to meet up with their customer’s demand. There is
also unhealthy compilation in the industry, which has made it difficult for
banks to perform necessary function to their respective customers.
The problems of
credit creation in the Banking Industry makes the researcher to note that the
objective of banks to meet up with their customers services go in a long way to
achieve the stated objective of banking system. Liquidity which is highly important
to meet with customers demand as a result of this problem in this sense, the
study is set up to find out what were responsible for that failure and offer
suggestion on how bringing desirable improvement in Banking Industry.
QUESTION AND / HYPOTHESIS
The instrument used are factual question and direct
personal interview, by using factual questions the respondents were allowed or
given maximum freedom to discuss at length for their understanding and opinions
about the project topic, however in addition to factual question, direct
interview method was also adopted to add other necessary information for the
effectiveness of the study.
As the topic deals with in these project, is making
oriented. Therefore people of total number of twenty questionnaire was sent to
select number of people who we believed, and knowledgeable of the study within
the marketing circle of the organization.
Also, in this project the use of a question called
STRUCTURED QUESTIONNAIRE was to explain the purpose of the research to the
respondents and to elicit their co-operation in answering the question there
The question set in the questionnaire are of two type
1. DICHOLOMON QUESTION: These types of question requires the
to pick what
he/she considers corrects by ticking the box; Yes ( ) or No
2. SUGGESTED QUESTION: Here
the respondent are expected to write what they feel is/are correct response the
question(s) asked. Both systems were used as part A and B.
analysis and evaluation of the question will be facilitated which part B allow
respondents to give a direct response to secure a more general response for an
OF THE STUDY
This project work aims verifying the contribution with
effectiveness of the problems and prospect of credit creation in banking
industry in Nigeria.
This study would
concern itself with the procedure of creating credit facilities.
administration and encountered by commercial banks in credit creation and also
will be collection procedure.
Wema Bank Plc
Mokola Ibadan Branch chosen as a case study was visited to collect the
necessary material and a cross section of their customers.
OF THE STUDY
work is prone to some constraints since it will not be easy if not impossible
to carry out study of all banking organization.
Also, the cost
of writing material and other stationeries are also one of the constraints
facing the researcher, other limitations was insufficient time for collection of data in writing the project
work and combining it respondents to reasons for limitation in the case study.
there is a problem arising from collection of questionnaire from respondents,
when administering the questionnaire assumed that the respondent were answer
question objectively and without any bias, some customers are illiterates and
hence some questionnaire left un-answered also questions are given in
OF THE STUDY
It is a fact
that the problems of credit creation in banking industry in Nigeria brings an
end to surverness of people in the country in an organization, the most
critical executive is the accomplishment of the corporate objectives varies and
differ from the organization to the other. Commercial Banks may offer them and
how to take advantage of such opportunities to improve upon their economic well
The study may
open the eyes of the general public to the usefulness of banking for economic
i.e progress and prompt, more people to patronize commercial banks which will
look effect of having large profit by banks.
work provide some general practicable approach and theory in creation of credit
in Banking Industry.
1. CREDIT CREATION:- This is the process of distributing of find to
potential by djlending and borrower in bank.
2. CHEQUE:- A bill of exchange drawn on a banking payable on demand.
3. COMMERCIAL BANK:- A financial institution set up for keeping and
lending money to people owned by an individual, organization or Government.
Examples are: U.B.A, WEMA BANK, G.T.B. e.t.c.
4. LOAN:- This is a bank money that bank gives its customers that met
the requirement for such money.
5. OVER DRAFT:- This type of credit facility are enjoy by those who own a
6. CREDIT TRADING: This is a type of credit which a trader provides to
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