ABSTRACT
Financial institution
has contributed immensely to the development of the economy of Nigeria by
enhancing and playing a significant role in the activities of business in the
economy and also contributing to the different sectors of the economy.
In recognition of the important role of financial institutions in development
of economy, this project work has been designed to enlighten all interested
individuals who may not want to go into one business line or other on the
availability of funds for them in any financial institution such as commercial
banks like First Bank Nigeria Plc.
The more individual’s ventures into business line, the more developed the
nations economy becomes because the development of any given nation is measured
by the numerous business activities going on in the nation.
During the course of
this study, book and journal were consulted to ascertain the extent to which
these financial institutions have actually displayed its role in enhancing
business activities and it was discovered that its contributions can never be
over emphasized.
Despite the financial
institutions achievements so far, recommendations were made to help the
performances of these banks so that more people will use the banks available
opportunities especially in the area of bank changes electronic banking card
product, money transfer services both domestic and abroad, agriculture
financial etc.
TABLE OF CONTENTS
CHAPTER ONE
Introduction
Background of the
study
Statement of the
problems
Purpose of the
study
Scope of the
study
Research
questions
Significance of the
study
Limitation of the
study
Definition of
terms
Research
hypothesis
References
CHAPTER TWO
Review of related
literature
The need for financial
institutions
The way financial
institutions has helped in
enhancing business
activities
The influence of
financial
institutions
Reference
CHAPTER THREE
Research design and
methodology
Research
design
Area of the
study
Population of the
study
Sample and sampling
procedure
Instrument for data
collection
Validation of the
instrument
Reliability of the
instrument
Method of data
collection
Method of data
analysis
Reference
CHAPTER FOUR
Data presentation and
analysis
Presentation and
analysis of
data
Testing of
hypothesis
Summary of result
References
CHAPTER FIVE
Discussion,
recommendation and
conclusion
Discussion of result
finding
Conclusion
Implications of the
research finding
Recommendation
Suggestion for further
research
Limitation of
study
Bibliography
Appendix
I
Appendix
II
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
The stand of economic
development is a total sum of all the effective and efficient business
activities of the country either home or abroad.
There are vital roles,
which the financial institutions have to play in this development. The
survival and future of a given nation is hooked on the volume of business
activities of that nation, also the availability of fund for financing the
activities is necessary.
The main purpose of
financial institution is to aid private individuals and government to finance
their business projects. Financial institution could be seen as the
pillar that causes business activities to progress.
There are financial
institutions that deal with physical cash transaction, these institutions are
known as banking system for example First Bank Nigeria Plc and there are
non-banking financial institutions they complement the activities of the
financial institution of business project. These institutions are known
as non-banking system. Examples include National Providence Fund (NPF)
financial companies, pension scheme, insurance companies, the corporative society,
investment companies.
Furthermore, there are
various markets that make up the financial institutions.
Foreign exchange Market: This type of market creates
opportunities for foreign exchange for the benefits of investors in carrying
out international business.
Liquid capital and money
market: This is where long and short term lending and borrowing
instruments are treated by the owners and users of fund.
Stock Exchange
Market; In this market the share of the companies and declared for
interested agents to buy. For the main reason for this study, the
researcher will be writing on the banking financial institution but before limiting
it to the case study, below is a short history of commercial banks in Nigeria.
COMMERCIAL BANKS IN
NIGERIA (ORIGIN)
Banking business in Nigeria started in 1892 by African Banking Corporation,
invited from South Africa. The bank was taken by British bank for West
Africa in 1894 now known as First Bank of Nigeria Plc Barelays Bank now known
as Union Bank of Nigeria Plc was established in 1917. The two expatriate
banks dominated the banking industry or sector until 1933 when National Bank of
Nigeria was established.
According to Nwankwo
(1980), many indigenous banks were established between 1929 and 1952, but most
of them failed dur to poor management, mal-administration, lack of training and
motivation apart from low capitalization and stiff competition from foreign
owned banks. Only three indigenous banks and two foreign owned banks
survived that period. By 1952, the First Bank ordinance was
introduced. It stipulated minimum capital base and locating for
banks. Soyobo (1991) called the period that followed 1952 to 1959 the
first banking boom era.
However, Nwankwo noted
that no bank was established in Nigeria between 1962 and 1970, presumably
because of the impact of regulations and the civil war (1967 – 1970).
The industry has twelve
(12) Merchant Banks and 29 Commercial Banks in 1986, but by December 1990,
there were 48 Merchant banks and 58 commercial banks apart from 5 development
banks and the people’s bank established in 1989.
First Bank of Nigeria
Plc was incorporated as a limited liability company in 31st March
1894 with head office at lever pool. It started business under the
corporate name of the Bank of British West Africa (BBWA) with a predecessor,
the African Banking Corporation that was established earlier in 1892.
This lead to the prominent position, which the bank has to establish in the
banking industry in West Africa.
For over a century,
First Bank of Nigeria Plc has distinguished itself as a leader banking
institution and a major contributor to the economic development of Nigeria.
In the early years of
operations, the bank recorded an impressive growth and work closely with the
colonial government in performing the traditional function of a central bank
such as; issue of space in the West Africa sub-region. It was a
progressive system that a branch was opened in Accra Ghana in 1896 so as to
justify its West African coverage also in 1898, another branch was open in
Freetown Sierra Leone. This operational system marks the beginning of the
banks International banking operation.
And in 1900, the bank
established second branch in Nigeria and was located in Calabar. Two
years later the operation was extended to the Northern part of the Nigeria.
The bank has network coverage of 315 branches throughout the federation
including a branch in the city of London and it maintains the largest branch
network in the banking industry.
STATEMENT OF THE
PROBLEMS
Banking is a long-term
system of which expected funds are committed to enterprises to pay back within
a period of time for about twenty years depending on the type of loan.
But in the recent past, banks have failed to function effectively in this area
and there have been several complaints such as frequent appointment of
directors, habits, high staff turnover etc, this has also led many banks into
distress, so the researcher wants to find banks into distress, so the
researcher wants to find out the causes of the problems and proffer a
suggestion.
PURPOSE OF THE STUDY
The sole aim of this
research study is to identify the role of financial institution in enhancing
business activities in the Nigerian economy, with reference to First Bank Nig.
Plc Enugu Branch.
This research will draw
down to the topic of the research work and the problems encountered in the
nations economic development and as well recommend some possible solution to
the problems.
To identify reasons for
low lending habits
To ascertain their
lending regulations and rates
To find out whether they
have qualified staff as top management
SCOPE OF THE STUDY
This research work
covers the specific roles financial institution plays in enhancing business
activities in the country and its consequences on the economy of Nigeria using
First Bank Nigeria Plc as a case study.
RESEARCH QUESTION
The questions to carry
out the role of financial institution in enhancing business activities have
brought about the following research questions.
To what extent has First
Bank Plc gone to satisfy the needs of their customers in creation of bank
deposits?
To what extent do banks
give loans to their customers?
Do customers payback the
loan as and when due?
What machinery are used
in recovering the loans if not paid back?
What are the
qualifications of managers handling the unit?
SIGNIFICANCE OF THE
STUDY
This research work will
help the entire economy especially business organizations, the government and
other banks in their decision-making as well as help to improve their
performance of business activities.
It will also go to a
very great extent in helping those that have no knowledge of what banking is
all about and all the students in higher institution who are inspiring to know
about the subject matter.
DEFINITION OF TERMS
ROLE:
Duty in an undertaking
FINANCIAL: Concerning
money and finance
INSTITUTION:
An institution is an organization established for social, educational,
religious etc purposes.
PILLAR:
Supporter of business activities or something
TRANSACTION:
The act of carrying out business activities with somebody or an organization.
ACTIVITIES: Programme
going on in a particular business
RESEARCH HYPOTHESIS
Ho1:
First bank do not satisfy the needs for their customers in creation of bank
deposits
Hi:
First bank satisfy the needs for their customers in creation of bank deposits
Ho2
Customers do not pay back loan as at when due
Hi
Customers pays back loan as at when due
Ho3:
The extent of bank loan to customers is not encouraging
Hi:
The extent of bank loan to customers is encouraging
Department | Business Administration and Management |
Project ID Code | BAM0034 |
Chapters | 5 Chapters |
No of Pages | 46 pages |
Methodology | Chi Square |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
|
|
Contact Us On | +2349067372103 |
Contact Us On | +2349094562208 |
|