THE ROLE OF FINANCIAL INSTITUTIONS IN THE DEVELOPMENT OF AN ECONOMY (A CASE STUDY OF NIGERIAN AGRICULTURAL AND CO-OPERATIVE BANK, OGUI – ENUGU)
The banking system and financial institutions is one of the fastest growing and developing sectors of paramount importance in the Nigeria economy. The role of the various banking ad non-banking financial institutions in the provision of different types of industrial and agricultural finance are fully appraised.
In examining the role of financial institutions in economic developments, the following theoretical concepts usually constitute the focus of attention, namely;
1. The domestic mobilization of financial resources is essential for capital formation and accelerated growth.
2. An efficient allocation of available resources is of importance in the development process.
3. Financial institutions offer an efficient institutional mechanism through which resources can be mobilized and directed from less essential uses to more productive investment.
The role of financial institutions in Nigeria is so crucial in the economic emancipation, as such roles help the economy of developing nation find its real position in the world economy and improves the standard of living of such nation.
The researcher tried to examine the adequacy and relevance of the institutions and the structure of the financial system of meet the needs of the economy for rapid development and also to know whether they play the role for which they were established.
In order to write the project, research was done on some of these banks and financial institutions like central bank of Nigeria, commercial banks, merchant banks and development banks.
Finally, the researcher also carried out thorough investigations to show all the claims of some financial institutions and hence recommendations were made.
Table of contents
1.1 Background of the study
1.2 Statement of the study
1.3 Objective of the study
1.4 Significance of the study
1.5 Scope of the study
1.6 Definition of terms
1.7 Research questions
2.0 Review of the related literature
2.1 The structure of the Nigerian financial system
2.2 The concept of economic development
2.3 Financial services
2.4 Problems and prospects of banks in Nigeria
3.1 Research design
3.2 Area of study
3.3 Population of the study
3.4 Sample and sampling procedure
3.5 Instrument of data collection
3.6 Reliability and validation of research instrument
3.7 Method of data collection
3.8 Method of data analysis
Presentation and Analysis of Data
5.0 Discussion, recommendation, conclusion
5.1 Discussions of findings
5.3 Limitations of study
1.1 BACKGROUND OF THE STUDY
The idea of establishing financing institutions was mooted soon after the establishment of the central bank of Nigeria on first July, 1959 after the bank failures of the early 1950’s. At this stage, it became obvious that there was an urgent need to establish financial institutions capable of providing medium and long-term capital to full up the serious gaps in the financial system of the economy.
In view of the dwindling position of the economy the government has at various times tried to correct through monetary and fiscal policies the downward movements of the economy as well as to place the economy on a path of meaningful development.
Owing to the important roles agriculture and manufacturing sectors are expected to play in the economic development the government introduced a lot of policies to encourage production in these sector for example, the stipulated sectoral distribution of loans to agriculture and manufacturing sector (preferred sectors) has been increasing over the years. The government executes the monetary policies through the banks of which commercial banks are the key players.