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The Contribution Of Commercial Bank To The Economic Growth In Nigeria (1980 –2004)
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1.2 STATEMENT OF THE PROBLEM.
Growth has many aspects,
which are interrelated. It involves moving society in a preferred
direction: an improvement in physical infrastructure high level of
morality, political development, social development and economic growth.
In any modern society, economic growth and political development are
the major goals, which cannot be achieved separately. In short they have
been the major issues of any developing country in which Nigeria
belong, initially, improvement in the national welfare was measured
according to the rate of growth in gross domestic product but presently
growth is seen as improvement in the general welfare of the society. It
is usually manifested in desirable changes in the various aspect of the
life of the society.
Other aspects of economic growth
includes reduction in level of inflation, increase in per capital
income, increase in employment, equitable distribution of income,
favourable balance of trade and payment etc. As an important
institution, commercial banks have been contributing to the economic
growth of this country. This they do through the process of
capitalization of financial resources, efficient allocation of these
available resources and providing institutional mechanisms through which
resources is mobilized and directed from the surplus spending units to
the deficit spending units.
Economic growth in this
research means increase in quantity of goods and service. These
goods/services are used to measure the standard of living, which is as a
result of increase in gross domestic product over the years. These
goods and services are not produced by themselves rather by firms or
companies that utilize resources (both human and natural resources)
before any goods/services are produced. Examples of these firms or
companies include uni-lever, Nestle food, Nigeria Breweries etc. These
companies or firms, which produce these good and services that improve
or increase our standard of living depend on the level of capital they
receive from this sector (commercial banks), that is the contribution of
commercial banks to economic growth of Nigeria.
1.3 OBJECTIVE OF THE STUDY
In
contemporary Nigeria society as in all developing societies, which are
incorporate into the global capitalist economy, the most pressing need
is economic growth and development. And to achieve these objectives
there is need for financial institutions particularly commercial banks.
The purpose of this study is primarily to investigate the contribution
of commercial banks to Nigeria economic growth using their loans and
advances.
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ABSRACT - [ Total Page(s): 1 ]The Operation of Commercial Banks in Nigeria started lately in 19th century and since then their contribution to the economic growth cannot be over emphasized. There is strong acceptance of the proposition that financial institutions and particularly the commercial banks contribute significantly to economic growth. For any country to pursue economic growth, therefore financial resources cannot be avoided. These financial resources are gotten mainly from commercial banks. This essence of commerci ... Continue reading---
