Problem and Prospect of Credit Creation by Commercial Bank (A Case Study of Zenith Bank Plc)

TABLE OF CONTENTS

    PAGES

TITLE PAGE                                                                           i

CERTIFICATION                                                                     ii

DEDICATION                                                                          iii

ACKNOWLEDGEMENT                                                           iv

TABLE OF CONTENTS                                                            v

CHAPTER ONE: GENERAL INTRODUCTION

1.1 Introduction                                                                      1

1.2 Statement of the Research Problem                                   3

1.3 Aim and Objectives of the Study                                        4

1.4 Scope and Limitations of the Study                                   5

1.5 Research Methodology                                                       6

1.6 Sources of Data                                                                6

1.7 Significance or Justification of the study                           7

1.8 Organization of the Study                                                  8

CHAPTER TWO: LITERATURE REVIEW       

2.1 Literature Review                                                              10

2.2 Functions of the Various Departments                              14

2.3 Central Bank and Credit Creation of Commercial Banks    20

2.4 Procedures for Creating Credit Facility                              22

2.5 Reason for Credit creation by the Commercial Banks         24

2.6 Credit Management in Commercial Banks                         24

2.7 Step in Credit Management                                               25

2.8 Principle and Practice guiding Lending at Zenith Banks     25

2.9 Credit administration and Securities acceptance to

Zenith Bank Plc                                                             27

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Brief Historical of The case Study                                      30

3.2 Restatement of the Research Question and Hypothesis      32

3.3 Procedure for Processing Collected Data                            41

3.4 Research Methodology                                                       43

CHAPTER FOUR: DATA ANALYSIS ANDTESTING OF HYPOTHESIS

4.1 A Brief Introduction of the Chapter                                   44

4.2 Presentation and Analysis of Data According

      to the Research Question                                                  45

4.3 Problems encountered by Zenith Bank of Nigeria Plc

      as regard credit created                                                    49

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Findings                                                                           52

5.2 Observation                                                                      52

5.3 Summary                                                                          53

5.4 Conclusion                                                                        54

      REFERENCES                                                                  55

CHAPTER ONE

GENERAL INTRODUCTION

1.1   INTRODUCTION

A commercial bank can be defined as an institution that accept deposits from customer and repay cash on demand. It can also be defined as financial institution that accepts deposits and other valuables from the public for safe keeping with the sole aim of making profit.

The idea of banking system was introduced in Nigeria 1892 with the establishment of an Africa banking co-operation. Another one was established in 1894 which was named British West Africa Bank. The British West Africa bank was later changed to chase merchant bank to become Standard Bank of Nigeria. In 1899, bank of 1917, Nigeria bank comes to existence but later, it was taken over bank of British West Africa in 1912. In 1917, it was the establishment of Nigeria Barclays bank.