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Problem Prospects Of Credit Creation By Nigeria Commercial Banks
[A CASE STUDY OF WEMA BANK PLC, ILORIN]
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1.2 OBJECTIVES OF THE STUDY
The objective of this research is to know the purpose of-creating credit by commercial banks which include the following.
i. To Increasing the purchasing power of the people.
ii. To Increasing the volume of money in circulation.
iii. To it enhance industrial expansion.
iv. To it helps businessman in his day to day activities
v. It helps in development of agricultural sector
vi. It helps in facing both and home trade
1.3 SIGNIFICANCE OF THE STUDY
On completion of this work, the outcome has to the existing literature of problem and prospect of credit creation by commercial bank and guide for future researchers on this topic.
It also spelt out the importance of commercial Bank in Nigeria.
The entrepreneur and businessmen will also more enlightening on the function of various department of Wema Bank on how to contact debtors on the repayment of the debts and also to lies with the legal department in case of bad debt.
While the Banks will also benefit from the research work with respect to the problem & prospect of credit creation and accepting of deposit by commercial Banks.
1.4 LIMITATION OF THE STUDY
The research intent to carry out research work on the problem and prospects of credit creation by Nigerian Commercial banks with special banks with special emphasis on Wema Bank Plc.
The research is in research methodology which has been constraint to sufficient chosen as a
study was visited to collect the necessary materials and interview a cross- section of their customs.
1.6 DEFINITION OF TERMS
i. Credit cash:- The bank advances loans to businessmen against certain specified securities,
ii. Bank:- Is an institution which accept deposit from public and in turn advance loans by creating
credit.
iii. Advance and loan:- Is the way of lending or giving out advance or loan to the customer of the bank for specific period with the pattern of repayment in specific time. There are three types of advance and loan.
a. Medium, term loan
b. Short term loan
c. Long term loan
iv. Over draft: - This is a situation when customer withdraws more than what is in his account e.g. customer has £f500 in him bank deposit and withdraw &1000. Overdraft can be arranged by the bank to the customer. If the customer require for it is up to maximum limit.
v. Money Market: - These are market for short term investment. It has no physical market place it brings banks and dealer linked together by telex, telephone and computer.
vi. Discount rate: - These are the rate used to calculate the present value of future cash flows, vii. Deposit:- This is a situation whereby the banks accepts deposit of money from their customer for proper safe keeping in their custody. Banks accept three kind of deposit account from its customer.
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ABSRACT - [ Total Page(s): 1 ]ABSTRACT This research work is centralized on the problem and prospects of credit creation by Nigeria commercial banks with special reference to Wema bank plc Ilorin it attempts to implore the problem and respects of credit creation by Nigeria commercial bank to achieve maximum creation of credits, the research will be divided into five chapters for easy understanding of the entire work chapter one is termed general introduction which comprises background to the study on how credit creation is e ... Continue reading---
