1.0 INTRODUCTION
Background of the Study
The lending process as it pertains to my case study (First Bank Nig. Plc) has immensely contributed to the development of the Nigerian economy.Bank lending is very relevant to all sectors in the economy both private and public sectors because it is one of the major sources of finance. Banks in this idea entails commercial banks, which mainly grant short term credit facilities and development banks which grant medium and long term credit facilities. The latter include Nigerian Agricultural and Rural Development Bank and Nigeria Industrial Development Bank. In 1960’s Agriculture was termed the mainstay of our economy. The fact is that Federal Government embarked on credit facilities otherwise known as agricultural credit which gingered every farmer both subsistence and commercial to put more effort in the field. At the present time, there is a lot of changes in both commercial and industrial sectors. New structure abound all over the country. Commercial activities have become order of the day. Traders can easily secure loan and overdraft in order to raise capital for their commercial activities especially in Emene – Enugu, Metropolis.
First Bank of Nigeria Plc, has helped many customers in the area of credit facilities to enable them finance their various projects.
Therefore, the problem of lack of fund for the execution of private and public projects has been ameliorated through bank lending especially First Bank of Nigeria Plc.
TABLE OF CONTENTS
Cover page i
Title page ii
Approval page iii
Dedication iv
Acknowledgement v
Table of Contents vi
List of Tables vii
Abstract
CHAPTER ONE
1.0 INTRODUCTION 1
1.1 Background of the study 1
1.2 Statement of problem 2
1.3 Objective of the study 4
1.4 Research Question 5
1.5 Research Hypothesis 6
1.6 Scope of the study 7
1.7 The significance of the study 8
1.8 Definitions of Terms 10
CHAPTER TWO
LITERATURE REVIEW 15
2.1 Nigerian Banking System 15
2.2 Origin of Bank Lending 23
2.3 Types of Bank Loans 24
2.4 The Interest of the Bank 28
2.5 Basic Principles of Lending 31
2.6 Canons of good Lending 34
2.7 Various sectors were credit facilities could be channeled 38
2.8 Bank lending principles and Analyses 41
CHAPTER THREE
RESEARCH METHODOLOGY 47
3.1 Research Design Used 47
3.3 Area of the study 47
3.3 The Population of the Study 48
3.4 Sampling size and Sampling Techniques 48
3.5 Instrument for Data Collection 51
3.6 Validation of Instrument 52
3.7 Reliability of Instrument 52
3.8 Method for Data Collection 53
3.9 Method of Data Analysis 53
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS INTERPRETATION AND FINDINGS
4.1 Research Questions 55
4.2 Testing of Hypothesis 65
4.3 Findings 69
CHAPTER FIVE
DISCUSSION AND CONCLUSION OF RESULTS
5.1 Discussion of Findings 71
5.2 Conclusion 75
5.3 Recommendations 77
5.4 Implications of the Findings 79
5.5 Suggestions for further Study 80
5.6 Limitations of the study 80
References 83
Appendix
