CHAPTER ONE
1.1
INTRODUCTION
The idea of establishing indigenous
development financial
institution was moved after the
establishment of the Central Bank of Nigeria on first July, 1959 after
the banks failure of the early 1950’s.
During
this time, it became obvious that there was an urgent need fro financial
institution capable of providing medium and long term capital to full up
serious gaps in the financial
system/structure of the economy.
As
a result of this need, arose to create special institutions for special
purpose, the special purpose being development in the widest sense of the
term. There was a need to create
institution that could undertaken investment where the private investor, might
for the time being also revetments to go, and create atmosphere in private investor where they will find the
risk of investment considerably reduced if not wiped out entirely.
The
need is to stimulate the private sector of the economy and also with the
promotion and finance of an enterprises by the provision of long-term and
medium term finance was accepted.
1.2
STATEMENT OF THE PROBLEMS
1.3
MAJOR PROBLEMS
This research entitled “The Role of
Financial Institution in a
Developing Economy, attempted to
determine find out the role of financial institution in enhancing the economy
development of Nigeria
with particular reference to some premise financial institutions like Nigeria
Bank for Commerce and Industry can Nigeria Agricultural and Cooperative Bank.
1.4
SUB-PROBLEMS: THIS STUDY TRIED
i.
to
know the objective for their establishment
ii.
the
basis for the disbursement of their fund
iii.
what
problems instituted their effective operation performance
iv.
areas
of priority or special attention in the disbursement of funds
1.5
THE PURPOSE OF THE STUDY
The idea of establishing indigenous
financial institution was
rooted soon after the establishment
of the Central bank of Nigeria
on first July, 1959 after the bank failures of the early 1950’s.
This
study tried to ascertain has much of the above listed objectives to the
financial institution have been able to achieve, their standing relationship
with the industry and commerce which they are meant to fund. Their standing relationship with the Nigerian
Public and the Central bank of Nigeria (CBN) which is their main source of
fund.
1.6
SIGNIFICANCE OF THE STUDY
The idea of establishing indigenous
financial institution
saddled with the responsibilities of
financing, funding industrialist and other Commercial Entrepreneurs fro the
economic emancipation of the country is unique in such a way that it tried to
x-ray the role of financial institution whose functions are to help in the bid
to Lunch Nigeria into economic freedom and to enable her complete favourably
with the international economy.
This
study reviewed the primary role of these institution which reviewed included
among other numerous function “providing equity capital and funds by way or
town to indigenous persons. This study
is equally significant in the at it has reviewed the activities of the Nigeria.
Institutions in trying to close those
gaps created by the operation of the earlier existing non-development financial
institution and speed up economic development of Nigeria.
1.7
SCOPE AND DELIMITAITON
This research entitled. “The role of
financial institution in a
developing economy is very verse but
for the purpose of manageability and financial constraints, it has therefore
restricted or limited itself to some specific development financial institution
in Anambra Urban. Some of these chosen
indigenous financial institution include Nigeria Bank for Commerce and Industry, Nigeria
Agricultural and Co-operative Bank and the Universal Insurance Company Limited.
1.8
DEFINITION OF THE TERM
i.
Role: For the purpose of the research role
should mean and includes all parts played and exhibited by financial
institution in the development of Nigeria Economically.
ii.
Development: It is constructed to mean here
advancing to attain a higher economic state and improvement in the standard of
living of the people.
iii.
Financial Institution: It means and includes all these
financial houses that are involved in the economic development of this nation.
iv.
Economy:
In this research, economy should referees to the improvement of the
standard of living of the people.
Wherever we come across a
developing to the development of
the people standard of living.
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