IMPACT OF COMMERCIAL BANK IN NIGERIA ECONOMY A CASE STUDY OF UNITED BANK OF AFRICAN (UBA)
CHAPTER ONE
1.1 INTRODUCTION
BACKGROUND OF THE STUDY
All sectors of the economy work in an inter-related and inter-dependent whole, therefore any malfunction of one or more sectors of the economy automatically affect the economy as a whole.
Banking sector are more regulated in the Nigeria economy than other institution because of the rate at financial intermediaries. It is vary difficult to see any economy move forward without a sound financial sector capable of playing its significant role in resources mobilization and allocation. As financial intermediaries, banks sectors mobilize funds, from the surplus spending unit at a cost for an- leading such funds to the direct spending unit at a price.
Commercial banks are financial institutions that deal with money and credit and also receive deposits from public and organisations. Some of which are repayable on demand by cheque. Commercial banks are public limited companies owned by shareholders. They operate in commercial basis, that is, they are out to maximize profit by trading in money. They differ from other banking financial institution because they honour cheques drawn by their customers on their demand deposit.
The role of commercial bank in transforming the economic framework of Nigeria cannot be over-emphasized. In effect, they give out loans advances, thereby providing shorter and medium term capital for investors.
The loan and advances may be in the form of direct loans, overdrafts by the discounting at bills. With the amount borrowed, investors could finance various project in the areas of industry, agriculture and commerce. This therefore, helps to speed up economic development. Finally, commercial banks constitute the heart of any barking system. They are involved in general banking services to their customers and also play various roles in ensuring economic development in Nigeria economy.
Consequently, in-depth investigations were conducted in the following:
a. Volume of loans given by commercial banks to economic sector in Nigeria
b. In-depth analysis of the problem of economic development in Nigeria economy.
c. Suggestions on how to alleviate some of the problems in order to achieve the derived objectives.
