Significance of Bank Credit to the Development of Nigeria Banks (A Case Study of United Bank of Africa Plc)

PROPOSAL

1.0   INTRODUCTION

In a developing country like Nigeria, the significance of bank credit to a firm cannot be over emphasized. It is there necessary that everybody known the roles played by banks through their credit in developing Nigeria firms and the economy of large. Although many of use have heard about bank credit and we pass through the bank on daily basis, majority do not known the vital rate played in our fast developing Nigerians various types of banks credit that exist and how the investors apply these credits to the development of the nation’s economy. In order to succeed in life, a man does not only work hard, but he also looks for means to improve on his work. These are situations whereby a man has all the skills needed to set up a business but does not have the means to the end of the whole show. That is why we feed that it timely at this point that is why we feed that it timely at this point o let people know the investment and now this will lead to the development of the nation at large source of financing both small scale and medium scale. Finally, many educated people do not know the procedures of obtaining bank credit. All the foregoing have therefore influenced and dictated the topic the significance of bank’s credit to the development of Nigeria Banks with special References to unit Bank for Africa Plc.

1.2   STATEMENT OF THE PROBLEM

        Bank makes most of their profit from lending but there are some problems limiting the ability of bank to lend.

         However, this study provides solution to the problem of bank credit and some of the problems are.

1.          Operation of central bank in regulating the volume of money of circulation for example the uses of Bank rate open market operation, special directive and cash deposit ratio.

2.          Inability of borrower the present acceptable security to bank.

3.          Unwillingness of customer to deposit their money in the bank.

4.          Unwillingness of members of public to borrow from the bank.

High interest rate charged by commercial bank on loan granted to public.