THE ROLES OF DEPOSIT MONEY BANK IN THE DEVELOPMENT OF BUSINESS ENTERPRISES

CHAPTER ONE

INTRODUCTION

• BACKGROUND OF THE STUDY

The role bank plays in every economy is a function of growth and development in an economy.

Business enterprises being one of the areas that role and directed is an important parameter of economic development out more succinctly.

The economy that goes into business enterprising is the right to development and perpetual. The role played by the deposit money bank in the development o business enterprises in Nigeria shall be discuss in the research work.

Deposit money banks are not charitable organization but the credit and various services rendered in the promotion of business enterprises in Nigeria cannot be over emphasized. This project shall therefore make an explanation into these various roles played by the deposit money bank with the international bank for West Africa retired to as IBWA now as Afribank Nigeria Plc the case study of the research.

The federal government in Nigeria though the central bank (CBN) has employed service polices to correct the recent economic depression in the country most of his policies are arranged through liberation of credit for business enterprises promotion.

Lapses shall be critically Pin-Pointed and reasonable recommendation shall be made to the deposit money bank for depending their function in business entrepreneur development. A clear distinction of the first City Bank BTAO was one o the First Africa. At a point of the back activities was given the authority to issue currency note ( a central bank function) in French speaking West Africa Countries in compliance with the federal government order, the bank headquarter was in Lagos. It has remained there oil data. The promulgated of the company on May 30^th 1969 under the name international bank for West Africa (IBWA) the English of BLAO, by December, 1976, the bank got.

 1.2 STATEMENT OF RESEARCH PROBLEM

Her share increased from N 3.6million in 1991 it got her first Nigeria Chairman in person of Alhaji T, Galadimai.

The year 1979 saw the paid up capital of IBWA/first banks increased to N15 million. The year a Nigeria in managing director was appointed in person of Mr. C.O. Olashere, in 1980 the federal government gave up 10% of her equity holding in the bank of the staff. Two years later, the bank adopted first bank as her sub-name. The name Afri Bank is now common and popular to all bank in the BIAO group.

The bank finally changed her name to Afri-Bank Nigeria Plc with effect form January 1^st, 1990.

Over the years the first bank lies grown into the group currently comprising the following:

• First bank international limited (merchant Bank)
• First bank estate company limited (investment company)
• IBWA financial company limited Dublin (off share investment company)

1.3   OBJECTIVE OF THE STUDY

The principal objective of this research work is to justify and enlighten the need on how effectively and efficiently the deposit money banks are contributed directly or indirectly in financing and promoting the development of business enterprise.

The study will also examine the function the various credit facilities widely used by deposit money banks in achieving their aims and objectives moreover, to know the extend or yearning of the development of the business enterprises. In order to compare their opinion with that of the information given by the bank regarding the activities and future plans (incoming plans) to promote business enterprises.

SCOPE OF THE STUDY

Our investigation is primarily focused on the roles of deposit money bank in the development of business enterprises regarded as the most credible in the development of business enterprises. In this regard the research will focus attention on the effect of impact of business enterprises will activities of other institution given in business promotion.

The research also focuses attention on the comprising post works and articles or other researcher.

1.4   LIMITATION OF THE STUDY

The research work reported her live any other research project is best by a number of problems, shortage of time couple with financial constant in not worthy.

Due to the limited time for the completion of this project, only limited data could collect, analyze and interpreted.

Coupled with this is the financial constants which limit and reduce the scope and areas of coverage (in terms of data collection) of the research which would have enable greater volume and more varied data, better and more accurate interpretation of the row information obtained, face with such problems are enumerated above one cannot chain that the study is comprehensive or exhaustive enough. But be that is it may be study will be a contribution  however modest toward understanding of a subject about which litter hitter has been research upon.

1.5   PLAN OF THE STUDY

The study is structure five chapters in the following order:

The first chapter of the research work deals essentially on the introduction aspect of the study. The introducing section in this chapter review and examine the history or banking in Nigeria in definition of important term. Also review the history of first bank in Nigeria as well as a bear the organization structure of the project. Furthermore, the chapters cover such variable as aims and objective of the study, scope of the study, research methodology, limitation to the study and plan of the research work.

Chapter three deals with research methodology, nature of business enterprises in Nigeria economy. This chapter shall also discuss the activities of other organization e.g. (WIDB and NERFUN) in business enterprises development in Nigeria.

Chapter four rate to the way of the data collection, data presentation and analysis at first bank credit policy on business promotion of finally discuss the activities of deposit money bank on other service.

The final and the concluding chapter deal with summary of the whole essay. Here the summary of the study, recommendation and the concluding part of this chapter.

1.6   DEFINITION OF CONCEPT AND TERMS

Deposit money bank are bank the undergo the clearing system other than the merchant Banks, they are referred to in this project as deposit money bank.

BUSINESS ENTERPRISES

This comprises the small and large business as present in the Nigeria economy in our system. In 1929 indigenous entrepreneur began to make forage into the banking institution in thirty years 1929-1959, 26 of these banks were established. However, these bank just as easily they were established. The reaming to fouled with an average life span in 1960 only one survived giving a total of 4 survival out of he 26 banks chapter during the period, the four survived bank are:

• Agbomagbe bank of Nigeria Ltd (Now Wema Bank)
• African Continental Bank (Now Unity Bank)
• Bank of the North Nigeria (Now Unity Bank)

There bank by faced with problem of under capitalization, which was compounded of by back of GPPD management and malpractice with the enhancement of banking ordinance of 1962, whatever basis for their marketing board or directly brought out some existing of Private banks or established there.

By 1960, the structure of banking ownership in Nigeria was between foreigners on one hand and regional government on the other. Bank were either wholly, foreign owned or owned by the regional government. the foreign bank include the predecessor of the present first bank of Nigeria Plc, Union Bank Nigeria Plc dominated the market.

ISSUED OF SUBSCRIBED CAPITAL

It is a normal values of the share actually allocation for cash or more community either for cash of as consideration for the acquisition of asset or services rendered.

UNCALLED CAPITAL

It is the amount of money actually paid or demand to have been paid on share actually allocated.

S.T.L                 Short Term Loan

M.T.L        Medium Term Loan

L.T.L         Long Term Loan

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