• 0 Review(s)

Product Category: Projects

Product Code: 00001581

No of Pages: 43

No of Chapters: 5

File Format: Microsoft Word

Price :



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

Certification                                                                                                                ii

Dedication                                                                                                                  iii

Acknowledgement                                                                                                      iv

Abstract                                                                                                                      v

Table of Content                                                                                                         vi-vii



1.0              Introduction                                                                                                    1

1.1       Background of the Study                                                                               1-2

1.2       Statement of the Problem                                                                               2

1.3       Research Question / hypothesis                                                                      2-3

1.4       Purpose of the Study                                                                                      3

1.5       Scope of the Study                                                                                         3

1.6       Limitation of the Study                                                                                  4

1.7       Significance of the Study                                                                               4

1.8       Definition of Term                                                                                          5



2.0              Literature Review                                                                                           6-8

2.1       The Problem and Prospect of Credit in banking Industry                              8-10

2.2       Procedure for Creating Credit Facility in Banking Industry.                         10

2.3       Reason for Credit Creation in Commercial Bank                                           11

2.4       Steps in Credit Planning in Commercial Bank                                               11

2.5       Principle and Practice Guiding Lending at WEMA BANK                          11-12

2.6       Credit Administration & Securities Acceptance To WEMA BANK PLC.   13-14


3.0              Research Methodology                                                                                   15

3.1       Research Design                                                                                             15

3.2       Area of the Study                                                                                           16

3.3       Population of the Study                                                                                  16

3.4       Sample and Sampling Techniques                                                                  16

3.5       Instrument of Data Collection                                                                                    17

3.6       Method of Data Collection                                                                             17

3.7       Method of Data Collection                                                                             18



4.0              Data Presentation Analysis & Interpretation                                                  19

4.1       Data Presentation Analysis                                                                             19-21

4.2       Testing of Hypothesis                                                                                     22

4.3       Finding & Interpretation of Result                                                                 22-23



5.0              Summary, Conclusion and Recommendation                                                 24

5.1       Summary                                                                                                         24

5.2       Conclusion                                                                                                      25

5.3       Recommendation                                                                                            25-26





1.0            INTRODUCTION


            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 established.

            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 leader.



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.



            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 in.

            The question set in the questionnaire are of two type

1.         DICHOLOMON QUESTION: These types of question requires the respondents

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.

A question 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 opened question.



            This project work aims verifying the contribution with effectiveness of the problems and prospect of credit creation in banking industry in Nigeria.


1.5            SCOPE OF THE STUDY

This study would concern itself with the procedure of creating credit facilities.

The 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.



This project 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.

Furthermore, 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 appropriate answer.



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 being.

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.

This project work provide some general practicable approach and theory in creation of credit in Banking Industry.




1.8            DEFINITION OF TERM

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 current account.

6.         CREDIT TRADING: This is a type of credit which a trader provides to its customers.

Buyers has the right to create dispute within seven (7) days of purchase for 100% refund request when you experience issue with the file received. 

Dispute can only be created when you receive a corrupt file, a wrong file or irregularities in the table of contents and content of the file you received. shall either provide the appropriate file within 48hrs or send refund excluding your bank transaction charges. Term and Conditions are applied.

Buyers are expected to confirm that the material you are paying for is available on our website and you have selected the right material, you have also gone through the preliminary pages and it interests you before payment. DO NOT MAKE BANK PAYMENT IF YOUR TOPIC IS NOT ON THE WEBSITE.

In case of payment for a material not available on, the management of has the right to keep your money until you send a topic that is available on our website within 48 hours.

You cannot change topic after receiving material of the topic you ordered and paid for.

Ratings & Reviews


No Review Found.

To Review

To Comment