THE ROLE OF FINANCIAL INSTITUTION IN ENHANCING BUSINESS ACTIVITIES (A CASE STUDY OF FIRST BANK OF NIG. PLC ENUGU)
ABSTRACT
Financial institution has contributed immensely to the development of the economy of Nigeria by enhancing and playing a significant role in the activities of business in the economy and also contributing to the different sectors of the economy.
In recognition of the important role of financial institutions in development of economy, this project work has been designed to enlighten all interested individuals who may not want to go into one business line or other on the availability of funds for them in any financial institution such as commercial banks like First Bank Nigeria Plc.
The more individual’s ventures into business line, the more developed the nations economy becomes because the development of any given nation is measured by the numerous business activities going on in the nation.
During the course of this study, book and journal were consulted to ascertain the extent to which these financial institutions have actually displayed its role in enhancing business activities and it was discovered that its contributions can never be over emphasized.
Despite the financial institutions achievements so far, recommendations were made to help the performances of these banks so that more people will use the banks available opportunities especially in the area of bank changes electronic banking card product, money transfer services both domestic and abroad, agriculture financial etc.
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
The stand of economic development is a total sum of all the effective and efficient business activities of the country either home or abroad.
There are vital roles, which the financial institutions have to play in this development. The survival and future of a given nation is hooked on the volume of business activities of that nation, also the availability of fund for financing the activities is necessary.
The main purpose of financial institution is to aid private individuals and government to finance their business projects. Financial institution could be seen as the pillar that causes business activities to progress.
There are financial institutions that deal with physical cash transaction, these institutions are known as banking system for example First Bank Nigeria Plc and there are non-banking financial institutions they complement the activities of the financial institution of business project. These institutions are known as non-banking system. Examples include National Providence Fund (NPF) financial companies, pension scheme, insurance companies, the corporative society, investment companies.
Furthermore, there are various markets that make up the financial institutions.
Foreign exchange Market: This type of market creates opportunities for foreign exchange for the benefits of investors in carrying out international business.
Liquid capital and money market: This is where long and short term lending and borrowing instruments are treated by the owners and users of fund.
Stock Exchange Market; In this market the share of the companies and declared for interested agents to buy. For the main reason for this study, the researcher will be writing on the banking financial institution but before limiting it to the case study, below is a short history of commercial banks in Nigeria.
COMMERCIAL BANKS IN NIGERIA (ORIGIN)
Banking business in Nigeria started in 1892 by African Banking Corporation, invited from South Africa. The bank was taken by British bank for West Africa in 1894 now known as First Bank of Nigeria Plc Barelays Bank now known as Union Bank of Nigeria Plc was established in 1917. The two expatriate banks dominated the banking industry or sector until 1933 when National Bank of Nigeria was established.
