A CRITICAL ANALYSIS OF THE CONTRIBUTIONS OF COMMERCIAL BANKS TO THE ECONOMIC GROWTH OF NIGERIA
CHAPTER ONE
1.0 Introduction
Reforms are predicted upon the need for reorientation and repositioning of an existing status inorder to attain an effective and efficient state. There could be fundamental bottle-neck that may inhibit the functioning of the institutions for growth and the achievement of core objectives in the drive towards inhancing and sustaining the economic and social imperatives of human endeavour carried out through either government institution or private enterprises.
Consequently, the banking sector, as an important sector in the financial landscape, needs to be reformed inorder to enhance its competitiveness and capacity to play a fundamental role of financing investment. Many literature indicates that banking sector reforms are propelled by the need to deepen the financial sector and reposition it for growth, to become integrated into the global financial architecture, and involves a banking sector that is consulting with regional integration requirements and International best pratices.
The contention that the contributions of commercial banks should matter at all for growth and development has given rise to various opinions and theories among economists. Examining the current changes and advancement in more sophisticated growth models, which include financial intermediation, it was fairly obvious by the financial market have an important role to play in promoting industrial growth.
Robinson (1952) maintained that it is economic development that demand financial services. A recent work done by Levine (1997) however argues that the preponderance of theoretical reasoning and empirical evidence suggets a positive first order relationship between financial insititutions and economic growth.
Goldsmith(1969) asserted that banking sectors role matter for real development because the banking super-structure in‚ the form of both primary and secondary securities accelerate economic growth and development, they also improve economic performance to the extent that they facilicitate the transfer of funds to the best users, ie to the economic system where the fund will yield the highest social return.
Deveraux and Smith (1994) maintained that commercial banks can only mobilize economic growth through its influence, or decrease the savings rate and therefore growth is an open question. Greenwood an Jovanic(1990) are of the opinion that for commercial banks to affect economic growth through fund mobilization, commercial bank can increase the marginal productivity of capital called interest rate which determines to a great extent the amount that is saved or invested.
According to Udochi (1981:11), despite the obvious benefits derived from the commercial banks, most Nigerians are not well motivated to make adequate saving and investments in this hard period, due to the financial crunch prevailing in the banking and non-banking secor of our economy. The public don't hope to obtain enough funds from the banks neither could the bank afford to lend to an unpredictable project.
Barnger(1994:24) financial market development is very sensitive to the nature of macro-economic growth. It depends upon policies which promote the efficient allocation of resources in accordance with market forces rather than government directives. The development of financial market also depends on the provision of an adaptable regulatory and supervisory framework, which provides a balance between market freedom and investors protection.
Specifically, she stated that the following conditions are necessary for a competitive and stable financial environment: conducive and stable macro-economic environment. Progressive monetary and fiscal policies, appropriate regulatory and enforcement medians. A major problem concerning commercial banks in Nigeriais that there is no much link between it and the outside. Brown, in his book, “The Nigeria banking system 1998 saw statistical difficulties as one of the chief handicap of commercial banks in the country. He indicated the inclination of all firms including the commercial banks to present as a favourable picture as possible when they draw up their balance-sheets, which meant nothing more than WINDOW-DRESSING. This is because a bank's balance sheet may represent a true and fair picture of the affair of the bank on the last day of its financial year, but have a little to do with bank's affairs other or subsequent days.
1.1 Historical Background of Study
The Evolution Of The Nigerian Banking Sector
The banking operation began in Nigeria in 1982 under the control of the expatriates and by 1945, some Nigerians and Africans had established their own banks. The first era of consolidation ever recorded in Nigerian banking industry was between 1959-1969. This was occasioned by bank failures during 1953-1959 due to the liquidity of banks. Banks, then, do not have enough liquid assets to meet customer demands. There was no well organised financial system with enough financial instruments to invest in. Hence, banks merely invested in real assets which could not be easily realised to cash without loss of value in terms of need. This prompted the federal government then, backed by the World bank report to institute, of the loynes commission on September 1958.
The outcome was the promulgation of the ordinance of 1958, which established the Central bank of Nigeria (CBN). The year 1959 was remarkable in the Nigerian banking history not only because of the establishment of Central Bank of Nigeria(CBN) but that the treasury bill ordinance was enacted which led to the issuance of our first treasury bill in April, 1960.
The period (1959-1969) marked the establishment of former money, capital markets and portfolio management in Nigeria, in addition, the company acts of 1968 were established. This period could be said to be the genesis of serious banking regulation in Nigeria. With the CBN in operation, the banking industry restructing was motivated by the need to establish a healthy banking sector that will carry out its financial intermediation role at a minimal cost which effectively provides services consistent with world standards. The major aim of the consolidation program was to store up the capital base of banks consolidated through mergers and take-over to local banks. This allows foreign banks to participate in the banking industry by providing additional capitalisation through investment infrastructure in new banking products, operating technologies and buying shares of the existing banks.
The banking sector reforms, involve the reform of the regulatory and supervisory framework, the safety net arrangement as well as mechanisms to speed up attempts at resolution of banks non-performing loans. In an attempt to revitalize the banking system, a package were comprising among others.
CHAPTER TWO
2.0 Literature Review
2.1 Introduction
The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …
Procedure for Downloading the PDF (Docx) Material
A Critical Analysis of the Contributions of Commercial Banks to the Economic Growth of Nigeria can be downloaded by requesting the full set of materials at the project or seminar cost. The document will be sent via Microsoft Word (MS-Word) format via WhatsApp (e-mail) following payment confirmation.
| Seminar Material Cost ₦3,000 | Project Material Cost ₦5,000 |
Request Complete Material
 | Click here to request the Complete Material via WhatsApp including;
|
Disclaimer for Complete Material Utilization
The displayed research work titled "A Critical Analysis of the Contributions of Commercial Banks to the Economic Growth of Nigeria" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
Frequently Asked Questions (FAQ)
Is the topic “Design and Implementation of a Computerized Booking System for Airlines” recommended for Computer Science (CS) Project?
Yes it is highly recommended — An Airline Booking System is a computerized system used to store and retrieve information and conduct transactions related to travel. The aim of the study is to Design and Implement a Computerized Booking System for Airlines. In achieving this aim, the following specific objectives were laid out as follows to design and develop an application software that will provide an option where passengers can view price chart, minimize cost of maintenance instead of spending more money in purchasing of new equipment and increase output of passenger manifest with the interconnection more than one computer system over network. The motivation that led to the implementation of the proposed system is as a result of inefficiency will be notified and new system design …
Can the material for “The Effect of Instructional Materials on the Learning and Teaching of Economics in Secondary Schools in Nigeria” be used as a guide for Integrated Science Education Project?
Yes it can be used — Instructional materials are the teaching aids employed by the teacher to improve the effectiveness of instruction. The study was carried out to investigate the effect of instructional materials on the learning and teaching of economics in secondary schools using some selected secondary schools in Bauchi metropolis as a case study. In achieving this aim, the following specific objectives were laid out to ascertain the extent to which Senior Secondary School students learning of Economics can be influenced by the use of instructional materials and examine the influence of instructional material utilization on the teaching of Economics in Senior Secondary Schools in Bauchi metropolis. The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from …
Can the material for “Small Scale Industry in Nigeria; the Financing Question” be used as a guide for Economics Project?
Yes it can be used — A critical review of the most recent literatures on labour turnover and productivity was done. It was revealed that there is a significant relationship between labour turnover rates and labour performance. And that labour turnover affects company productivity level. But, welfare services in another way affect labour turnover rate. Also, the finding shows that productivity measurement has significant relationship with the company performance and growth. But despite the inherent disadvantages associated with labour turnover, it is also been use to maintain profitability during slimmer period. This study examines its implication on Nigeria organizations, using Evans medical plc as a case − study. Four hypotheses were formulated to test the relationship between labour turnover and productivity, performance and welfare service, and how measurement …
Can the material for “Challenges of Collection Development in Library” be used as a guide for Library and Information Science (LIS) Project?
Yes it can be used — Collection development is influenced in a number of ways by factors both within and outside the library. Library collection is the sum total of library materials i.e. books, manuscripts, serials, government publications, pamphlets, catalogues, reports, recordings, microfilm reels, micro films and microfiche. The study identifies the Challenges of Collection Development in Library using Imo State University Library as a case study. In achieving this aim, the following specific objectives were laid out to find out the state of collection development in Nigeria libraries, identify the problems of collection development in Nigeria public libraries and the solution to the problems of collection development. The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from the …
Can the material for “Effect of Communication on Employee Production” be used as a guide for Public Administration (PA) Project?
Yes it can be used — The purpose of this project is to examine the effect of communication on employee productivity in Public Sector. It also focus on the role which modern communication technology plays in an organization. Communication encompasses all affairs of life, this research will discuss on the forms of communication barriers that can affect effective communication in an organization and possibly solution. Research methodology is the specification of procedure for collecting and analyzing the data necessary to help solve the research problem. Meaning that this work also emphasized on the procedure that was used to solve the problem so also how it was analyzed and collected. The research work was conducted by taking a sample of employees in Lagos Television and it was also used as …
Can the material for “Isolation and Characterization of Bacteria for Bioenzymes Production using Potato Peels” be used as a guide for Microbiology Project?
Yes it can be used — The study examines the Isolation and characterization of bacteria process for bioenzymes production using potato peels. In achieving this aim, the following specific objectives were laid out to identify the isolation process of bacteria for potato peels bioenzymes production, examine the characterization of bacteria process for potato peels bioenzymes production, and evaluate the measure of the potato peels bioenzyme efficacy. Potato (Solanum tuberosum L.) is an important crop in Nigeria, it is a primary source of starch for vegetarian diet. The wastes coming out from potato plants in the form of liquid and solid arise from peeling, trimming, slicing, cleaning, and rinsing operations which creates pollution problem. Data used in this work is derived primary from secondary sources. The methodology …
Is the topic “A Comparative Analysis of Rental Variation in Residential and Commercial Properties in Nigeria” recommended for Estate Management (EM) Project?
Yes it is highly recommended — This research has investigated in to a comparative analysis of rental variation in residential and commercial properties in Ogui New Layout, Enugu Nigeria. The researcher used both questionnaires, interview and self observation as method of data collection. The data was collected among some landlords, Estate agents of the selected properties. The data collected was analyzed based on interpretation and conclusion made. Chapter one treats the introduction of the project work, chapter two Literature Review, chapter three. Research methodology, chapter four data presentation, analysis and interpretation and chapter five finding, recommendation and conclusion. Finally, rental variation in commercial and residential properties have been discovered to be influenced by certain factors affecting the rents passing on these properties. …
Can this topic “Strategies for Improving Teacher Motivation to Ensure Professional Performance in Secondary School” be used for Education Project?
Yes it can be utilized for research — The study determines Strategies for Improving Teacher Motivation to Ensure Professional Performance in Secondary School. In achieving this aim, the following specific objectives were laid out to examine the impact of the motivation on teachers performance, find out whether the proper use of motivation techniques have a positive or negative effects on the performance of teachers, find out whether teachers in Delta State are presently satisfied with the condition of service, find out whether financial incentives improve workers performance more than non-financial incentives, examine the extent to which motivational determinants are in teaching profession whether the teacher in Delta State will quit teaching profession, and make recommendations to the government and appropriate authority concerned based on the findings of the …
Can this topic “Managing Performance Admist Covid 19” be used for Performing Arts Project?
Yes it can be utilized for research — The purpose of the study is to investigate the managing performance admist COVID 19 in Olabisi Onabanjo University. In achieving this aim, the following objectives of study were set out to; investigate the negatively impact of managing performance in Olabisi Onabanjo University during COVID 19, investigate the precautionary measure used during COVID 19, and examine the managing performance admist COVID 19. Investigation reveals the following problems of the Managing Performance Admist Covid 19 in Olabisi Onabanjo University research work; The COVID-19 pandemic has resulted in significant talent management challenges including; hiring freezes and layoffs, salary freezes, canceled bonuses, and pay reductions, how work is done (i.e., teleworking), and increased employee stress and burnout. The lack of value contributed by the …
Can the material for “Design and Implementation of an Electronic System for Automated Banking” be used as a guide for Computer Science (CS) Project?
Yes it can be used — All commercial application developed (irrespective of the programming environment used) are to business models. Applications help to computerize business models. It is the computerization process that empowers a business model to capture, validate, store and manipulate business data at the highest speed possible. A microfinance Banking business model has business processes that manipulate data associated with savings accounts, current account, deposits and withdrawals for each type of account, fixed deposits, and loans and so on. There business processes are in some way associated with money transaction since money is the core product of this business model. The project which looks into the development of Banking Model was deigned to process the customer registration, generate new account number give report in …