TABLE OF CONTENTS

Title page                                                                         i

Certification                                                             ii

Dedication                                                               iii

Acknowledgement                                                    iv

Table of content                                                       v

CHAPTER ONE

1.0   Introduction

1.1   Statement of research problem

1.2   Objective of the study

1.3   Limitation of the study.

1.4   Research methodology

1.5   Significance of the study

1.6   Definition of the terms.

1.7   Plan of study

CHAPTER TWO

2.0   Literature review
2.1   Lending as a function of money deposit bank

2.2   Lending procedure in union bank.

2.3   Classification of account is union bank.

2.4   Year 2011 union bank analysis of loan and advance by performance.

2.5   Prudential guideliness.

2.6   Security for bank lending

2.7   Lending and credit policies money deposit bank

2.8   Procedure for bank lending

CHAPTER THREE

3.0   Research methodology

3.1   Source of data

3.2   Population of size of the study

3.3   Limitation of methodology

CHAPTER FOUR

4.0   Data presentation, data analysis and interpetation of results.

4.1   Data presentation

4.2   Data analysis.

4.3   Interpretation of resuls.

CHAPTER FIVE

5.0   Summary, Conclusion and Recommendation

5.1   Summary

5.2   Conclusion

5.3   Recommendation

        References

CHAPTER ONE

INTRODUCTION

        The Banking Sector is part of the Nigerian Financial system refers to the totally of the regulatory and participating institutions, including financial markets and instruments involved in the process of financial intimidation. Including financial markets and instruments involved in the process of financial intemidatin. The banking industry in Nigeria is the Bedrock of the economy. The banks and other financial institution Act no. 25 of 1991, define “Bank” as one licensed under the act and banking business as the business of nearing deposits on current saving or other similar Account and paying or collecting cheque (Section 62 BOFIA)

        From these definition, banks act only as intermediation agents by mobilizing financial resources from the surplus unit in an economy and channeling the same to the deficit unit for economic development. The banking institution do not own those resources, but rather, in accordance with the agency hypothesis. These institution act the risk manage of the funds. With regard to the requirement for protection of the right and interest of their innumerable depositors, establishment for economic development, bank are expected to ethnically pursue the integrity, impartiality, reliability, transparency and social responsibility (cause 1999, Dogarawa 2004)

        The lending process is relatively straight forward service of activities involving two principal parties whose association ranges from the initial loan request of the successful or unsuccessful repayment of the Loan. Most students of banking and accounting would agree that process is an independent but the exact dependencies are rarely articulated in a rigorous manner. One of the purpose of this is to investigate association between at least two important aspect of the lending process namely; The credit evaluation stage and the sequence of events.

        Through storage and the sequence of evens deposit banking interspread other parts of the world and with time they became organized those Gold Smiths issued transferable receipt on the Security of Gold deposited by customer and hence improve the way for the development of current account bill discounting, and loan facilities.

        The gold smith realized that only small qualities of the deposited gold and silver were actually demanded for. This led them into lending to other needy customers. In the contemporary operation at banking sector, small, medium large scale industries were developed and perhaps controlled by banking through lending.         Banks play a significant role in mobilizing savings to fuel investment and growth. Apart from their role in financial intermediation, banks have been shown to contribute to general economic stability. This integral link has been most evident in the Nigerian Financial crisis where the economy was adversely affected when banks were left weak and vulnerable to external shocks. At the centre of Nigeria’s economy has been an evolving banking system. That has been in existence prior to country/s independence from great Britain in October 1960, Nwankwo (1975) holds that formal banking began in      Nigeria        in     1982.