ABSTRACT
In this study, researcher
examined the empirical analysis of commercial banks lending policies to the
private sector. A case study of union bank of Nigeria plc. The study is
significance on the system of monetary and credit policy measure which the
central bank has stipulated the amount of interest lending rates that are
obtainable in the commercial banks. The empirical analysis which is based on
experiments or experience which is intended not only to maintain adequate
monetary policy measures but also to create a healthy balance of payment
position which is to reduce the art of domestic price inflation. In this study
empirical analysis give way to some of the problems which arise in this study
entitled empirical analysis commercial banks lending polices to the
private sector attempt to appraise the various ways through which the
commercial banks disburse money in form of loans and advances to the private
sector with a view to determine the extent of compliance with the central bank
of Nigeria credit guidelines. From the understanding of this work the
objectives of this study is to know whether the individual/companies that
benefited from the loan actually make use of the fund for the purpose they
applied the money for. This work gathers some findings which analyzes data
collected from the banks and that form the beneficiaries of the loans. Through
the view of this analysis, the conclusion of the study is that commercial banks
with particular reference to union bank of Nigeria plc work in strict
compliance with the central banks directives with regards to issuing loans and
advances.
TABLE OF CONTENT
Title page
Approval page
Dedication
Acknowledgement
List of tables
Abstract
Table of
content
CHAPTER 1 INTRODUCTION
Background of the study
Statement of the
problem
Objective/ Purpose of
the study
Significance of the
study
Research Questions
Scope and limitation of
the study
Brief history of union
bank of Nigeria plc
Definition of terms
References
CHAPTER 2: REVIEW OF RELATED LITERATURE
Basic principle of
lending
Introduction of the
Early Banking Institution in Nigeria
Early Features of
Commercial Banks Leading in Nigeria
Meaning and definition
of topics
Commercial banks lending
considerations
Evidence and feasibility
of sources of repayment of facility
The History of Union
Bank of Nigeria (plc)
References
CHAPTER 3: RESEARCH METHOD
Research design
Area of
the study
Population
of the study
Sample and
sampling technique
Method of
data collection
Instrument
of data collection
Validation
of data research instrument
Reliability of
the research instrument
Method of
data analysis
CHAPTER 4: PRESENTATION AND ANALYSIS OF
FINDINGS AND DISCUSSION
Research
Question
Research
Hypothesis
Summary of Result
/Findings
CHAPTER 5: DISCUSSION OF FINDINGS (RESULT)
CONCLUSION AND RECOMMENDATION
Summary of
findings
Recommendation
Conclusion
References
CHAPTER 1:
INTRODUCTION
Background of the Study
Over the years the
Central Bank of Nigeria had stipulated the amount of interest and lending rates
that are obtainable in our commercial banks, with a view to harmonize these
rates in all commercial banks in all the country it will be of interest to note
that the central banks credit policy guideline had been a reflection of the
country’s economy form year to year.
The monetary and credit
policy measures were designed to accelerate the rate of domestic production
maintain healthy balance of payment position reduce the arte of domestic price
inflation. Monetary policy measures were also aimed at increasing the
flow of credit to the priority sectors of the economy particularly the
agricultural and manufacturing sectors so as to expand the production of home made
goods and services. The stand of monetary policy continued to be tight to
complement a disciplined fiscal policy in order to achieve moderation in
inflection any measure and ensure exchange rate stability.
History of Banking In
Nigeria
The Nigerian banking
ordinance of 1952 and the banking act of 1958 and various amendments and
innovations through 1969 laid the foundation for the operation of commercial
banking in Nigeria. The number of commercial banks operating in the
country rose from eight (8) in 1959 to twenty five (25) in 1983. as at
1995 there are 65 commercial banks in Nigeria with 1634 branches in urban areas
763 branches in rural area and 6 branches abroad totaling 2403 branches a
significant increase. While bank branches and offices increased from 160
to 1108 branches and offices in these period. The total deposit
liabilities also rose from 13.6 million Naira in December 1969 to 13.9 billion
Naira at the end of 1983. Since 1977 and following the enactment or
promulgation of Nigeria Enterprises promotion decree 1972 it has become
mandatory for all banking institutions in the country to be at sixty percent
(60%) Nigeria owned. This showed that with the promulgation of Nigeria
enterprises promotion decree Nigeria have started loving more than fifty
percent (50%) shores in the commercial banks operating in the country following
the current capitalization that us map out by the central banks on all the
commercial banks operating in Nigeria.
The commercial banks
have over the years proved to be the most important financial intermediary.
They have facilities for the rapid transformation and improvement of our
economy far and ways they are the largest single group in financial sector out
weighting by shore volume of transactions all the other non-banks financial
institution joined together throughout the whole world the commercial banks is
playing a big role in shaping the economy. They provide the tools contact
and expand the money in circulation through the mass of bank rates. In
Nigeria however the government has sustained shareholding in the equity capital
of the banks. They have contributed immensely to the economic development
through their deposit holding and credit to the Nigeria economy.
Statement of
Problem
This study entitled “
empirical analysis of commercial banks lending policies to the private sector”
attempt to appraise the various ways through which the commercial banks
disburse money in from of loans and advances to the private sector with a view
to determine the extent of compliance with the central banks of Nigeria credit
guidelines.
For sometime now there
have been a large stream of articles books and researches on commercial banks
lending polices. This is so because of the need for fund by both the private
and public sectors for development purposes. Frankly commercial banks do not
have their individual lending policies but can adjust within the stipulated
standard with an aim to utilize their customer’s deposit to attain the goal of
optimum profit.
It is disheartening to
team that the efforts of various government (federal and state) towards the
attainment of self-sufficiency in the industrial agricultural product have been
on persistent increase. There have been great shortage of most of the
essential food product and raw materials. They do not seem to be any
significant improvement with regard to output or productivity of private
sector. In the area of loans and advances that people now cast doubt over the
ration ate of commercial and allied bank loans or credit scheme.
Some people have gone as
far as asking the following questions. Do real and deserving
industrialists and agriculturist especially in the areas actually receive these
loans? What impact have these loans created in the private sector of the
economy?
In an attempt to answer
the above questions and more it because necessary to review an why other:
i. The
sources of commercial banks funds and types of advances
ii. Credit
policy guidelines as projected to direct by the central banks of Nigeria (CBN)
with a view to determine the sectoral allocations to the private sector.
Iii Typical commercial
banks lending policies to determine the extent of its compliance with that of
central bank. And based on this of review an analysis is made based on
the requirement used to advance money to individual and companies. Hence
my decision to appraise the commercial banks lending policies to private
sector.
Objectives /
Purpose of the Study
This study entitled “
empirical analysis of commercial banks lending policies to the private sector”
is discuss toward appraising the central banks of Nigeria credit policy
guideline regarding loans and advance disbursed by the commercial banks to
individual and companies with a view to determine it’s effectiveness and
compliance to the rules laid down. Whether the individual/ companies that
benefited from the loan actually make use of the fund for the purpose they
applied the money for.
The researcher will also
have on insight (understanding) into the sectoral allocations of these loans
and advances from the view point of preferred and less preferred sectors of the
economy. The study is directed towards determining the use to which this
borrowed money are put by the beneficiaries with a view to determine whether or
not the loans are utilized for the purpose for which they are meant for.
The study is also geared
towards borrowing whether these commercial banks actually give these loans or
they give these with stringent conditions making it impossible for poor
individuals or small-scale industries to obtain these and repay with much high
interest rate accompanying it.
Significance Of The
Study
This study is important
in the sense it shows the ways loans and advances made available to individuals
and companies by commercial banks with a view to enable them carry on their
business and operations with intention to repaying back such loans at an agreed
future period and the agreed interest rate being the cost of the loan.
The study is also
significant because the finding will be help to commercial banks customers (the
beneficiaries) and there fore help the policy makers to make amend the exists
lending policy and formulate new and appropriate lending polices or facilities
in such a way to reduce these problems to list minimum.
It will also be of
immense benefit to future researchers on the same subject matters or in similar
circumstances. The study will also provide data for planning purpose.
Furthermore it will help
central banks of Nigeria to know whether their credit guidelines are being
followed as prescribed.
Research Questions
To commercial bank staff
1.
Through what sources do you raise your find?
2.
What find of loans do you grant to your customers?
3.
What type of securities qualifies one for your loans?
4.
What problem do you encounter in the issuance of loans in relation to:
i. Repayment
of these loans when?
ii. Utilization
of the loan? Yes or NoTo beneficiaries:
i. What
is your business name?
ii. What
kind of business do you deal on?
iii. Is
your business registered? Yes /No if yes state the registered name.
iv. Do
you know of the existence of any bank assistance in the from of loan? Yes/No if
yes state the name of the banks and the number of times you applied.
v. What
are the procedures involved in the course of applying for the loan?
vi. Were
you given loan in every case? Yes/No if No state why.
Department | Banking and Finance |
Project ID Code | BFN0278 |
Chapters | 5 Chapters |
No of Pages | 111 pages |
Methodology | Chi Square |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2347043069458 |