Problem and Prospect of Credit Creation by Nigerian Money Deposit Bank ( A Case Study of Zenith Bank Plc)

TABLE OF CONTENT

Title page

Certification                                                                    i

Dedication                                                                      ii

Acknowledgement                                                           iii

Table of content                                                              vi

CHAPTER ONE

1.0    Introduction                                                           1

1.1    Statement of the research problem                          4

1.2    Objectives of the study                                           5

1.3    Research hypothesis                                               6

1.4    Significance of the study                                         6

1.5    Limitations of the study                                           7

1.6    Definitions of terms                                                 9

1.7    Plan of the study                                                    10

CHAPTER TWO

2.0    Literature review                                                     12

2.1    Functions of the various departments                       18

2.2    Central bank and credit creation of

         Nigeria money deposit banks                                   26

2.3    Procedures for creating credit facility                       30

2.4    Reason for credit creation by the Nigeria

Money deposit banks                                              32

2.5    Credit management in Nigeria money                     

Deposit banks                                                         33

2.6    Step in credit management                                      34

2.7    Principle of practice guiding lending of zenith banks  34

2.8    Credit administration and securities acceptance

         of money deposits banks                                         37

CHAPTER THREE

3.0    Research methodology                                            42

3.1    Historical background of the case study                   42

3.2    Sources of data                                                      45

3.3    Population of the study                                           46

3.4    Limitation of methodology                                       47

CHAPTER FOUR

4.0    Data presentation, analysis and results                    48

4.1    Data analysis                                                          49

4.2    Interpretation of results                                          54

CHAPTER FIVE

5.0    Summary Conclusion and Recommendation              57

5.1    Summary                                                                57

5.2    Conclusion                                                             58

5.3    Recommendation                                                    60

References                                                             62

CHAPTER ONE

1.0 INTRODUCTION

A Nigeria money deposit bank can be defined as an institution that accept deposits from customer and repay cash on demand. It can also be defined as financial institution that accepts deposits and other valuables from the public for safe keeping with the sole aim of making profit.

The idea of banking system was introduced in Nigeria 1892 with the establishment of an Africa banking cooperation. Another one was established in 1894 which was named British West Africa Bank. The British West Africa bank was later changed to chase merchant bank to become Standard Bank of Nigeria. In 1899, bank of 1917, Nigeria bank comes to existence but later, it was taken over bank of British West Africa in 1912. In 1917, it was the establishment of Nigeria Barclays bank.