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 - - - -i
Approval page - -ii
Dedication - - - -iii
Acknowledgement - -iv
List of tables - -v
Abstract - - - -vi
Table of content - -vii
CHAPTER 1 INTRODUCTION
Background of the study - -1
Statement of the problem - -3
Objective/ Purpose of the study 5
Significance of the study - -8
Research Questions - -8
Scope and limitation of the study 9
Brief history of union bank of Nigeria plc - - - -10
Definition of terms - -11
References
CHAPTER 2: REVIEW OF RELATED LITERATURE
Basic principle of lending 15
Introduction of the Early Banking Institution in Nigeria - -16
Early Features of Commercial Banks Leading in Nigeria - -20
Meaning and definition of topics 22
Commercial banks lending considerations - - - -27
Evidence and feasibility of sources of repayment of facility - -32
The History of Union Bank of Nigeria (plc) - - - -42
References
CHAPTER 3: RESEARCH METHOD
Research design - -46
Area of the study - -47
Population of the study 55
Sample and sampling technique 62
Method of data collection 62
Instrument of data collection 63
Validation of data research instrument - - - -64
Reliability of the research instrument - - - -64
Method of data analysis 64
CHAPTER 4: PRESENTATION AND ANALYSIS OF FINDINGS AND DISCUSSION
Research Question - -65
Research Hypothesis - -66
Summary of Result /Findings 67
CHAPTER 5: DISCUSSION OF FINDINGS (RESULT) CONCLUSION AND RECOMMENDATION
Summary n of findings - -86
Recommendation - -88
Conclusion - - - -90
References
INTRODUCTION
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.