EMPIRICAL ANALYSIS OF COMMERCIAL BANKS LENDING POLICIES TO THE PRIVATE SECTOR A CASE STUDY OF UNION BANK OF NIGERIAN PLC
For long there have been a large stream of popular articles books and researches on commercial banking lending policies. This is so because of the need for funds by both the private and public sectors for development purpose. Indeed all commercial banks take directives from central bank of Nigeria in respect to lending polices. This policy is in effect pure reflection of the state of the economy at any given period. Sometimes the policy may demand that a special lending consideration be given to some or a particular sector (s) of the economy.
In conducting the research for this topic the researcher do hope to visit union bank Okpara Avenue Enugu and administer questionnaires to the top ranked staff, the research will be based on oral interview after which critical analysis of data collected will follow.
Moreover some constraint that tends to limit the research quest for information are inadequate financial resources and time factor due to constantlature in the classroom there by making it impossible together enough information needed for the research work.
In conclusion since he commercial banks do not have their individual lending policy but take directives form central banks of Nigeria in other to adjust within the stipulated standard and aim of utilizing their customers deposit they should know whether this loan is actually given to the poor individuals and also consider their liquidity base and current government monetary policies to limit the problem of short maturity of loans.
TABLE OF CONTENT
Table of content
1.1 Background of the study
1.2 Statement of problem
1.3 Objectives and purpose of the study
1.4 Significance of the study
1.5 Research questions
1.6 Scope and limitation of the study
1.7 Brief history of union bank of Nigeria Plc
1.8 Definition of terms
2.0 Review of related literature
2.1 Basic principle of lending
2.2 Introduction the early banking institution in Nigeria
2.3 Meaning and definition of terms
2.4 Commercial banks lending considerations
2.5 The history of union bank of Nigeria Plc
2.6 Commercial banks interest and lending rate as contained in the central bank of Nigeria policy guideline
3.0 Research design and methodology
3.1 Source of data
3.2 Research population
3.3 Sampling method
3.4 Questionnaires design
3.5 Description of respondent
4.0 Data presentation and analysis
4.1 Data presentation
4.2 Analysis of finding and discussion
4.3 Test and prove of hypothesis
5.0 Summary of finding conclusion and recommendations
5.1 Summary of findings
1.1 BACKGROUND OF STUDY
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.
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