1.0INTRODUCTION
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
1.0INTRODUCTION 1
1.1Background of the study 1
1.2Statement of problem2
1.3Objective of the study 4
1.4Research Question5
1.5Research Hypothesis 6
1.6Scope of the study 7
1.7The significance of the study 8
1.8Definitions of Terms 10
CHAPTER TWO
LITERATURE REVIEW15
2.1Nigerian Banking System 15
2.2Origin of Bank Lending 23
2.3Types of Bank Loans 24
2.4The Interest of the Bank 28
2.5Basic Principles of Lending 31
2.6Canons of good Lending 34
2.7Various sectors were credit facilities could be channeled38
2.8Bank lending principles and Analyses 41
CHAPTER THREE
RESEARCH METHODOLOGY47
3.1Research Design Used 47
3.3Area of the study47
3.3The Population of the Study 48
3.4Sampling size and Sampling Techniques48
3.5Instrument for Data Collection 51
3.6Validation of Instrument 52
3.7Reliability of Instrument 52
3.8Method for Data Collection53
3.9Method of Data Analysis 53
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS INTERPRETATION AND FINDINGS
4.1Research Questions55
4.2Testing of Hypothesis65
4.3Findings 69
CHAPTER FIVE
DISCUSSION AND CONCLUSION OF RESULTS
5.1Discussion of Findings 71
5.2Conclusion 75
5.3Recommendations77
5.4Implications of the Findings 79
5.5Suggestions for further Study 80
5.6Limitations of the study 80
References 83
Appendix
