THE ROLE OF BANKING INSTITUTIONS IN ECONOMIC DEVELOPMENT OF AKWA IBOM STATE
ABSTRACT
The title of this project is “The Role of Banking Institution in Economic Development of Akwa Ibom State” (A Case of Study of Oceanic Bank Plc). To aid the study, eight research question were formulated. Data were collected and analysed. From the findings of the study, it was sufficiently gathered that in Akwa Ibom State, one man business flourishes because of mutual distrust. It was concluded that 70%, infact virtually every businessman of worth in the state relies on government patronage, put differently, there exist a relationship between the flow of government contract and the wealth of this class of businessman. Reveal also was that conditions imposed by the finance houses usually scaring, it frightened away the small-scale businessman from obtaining loans from the institutions. This particular set back is caused by government monetary policies. They are hindrance to the lending abilities of the banks. Finally, it was discovered that some businessman make things chance they have no getting a loan. The conclusion was that, they mis-use the loan and can’t pay back when the time comes.
CHAPTER ONE
Banking Institution are among some of the most important sectors that helps accelerate economic development of any country. Banks are part of the infrastructures of a country. Within which development takes place. They certainly help to shift the economy from the subsistence sector to a cash crop economy by encouraging both the use of money and confidence in it.
They provide a convenient means of making payment between people easy, by the use of cheques and also provide safe place for the depositing of money, furthermore, they help development by their help development by their ability to make loans.
We have noticed that Akwa Ibom State is one of the least developed state in Nigeria, judging from whatever perspective. The case of Akwa Ibom State is that of backwardness in terms of development in all sectors. In the light of the above problem, the researcher seek to examine the implementations of the above stated roles of the banking institution with a particular reference to Akwa Ibom State.
1.2 THEORETICAL FOUNDATION
Banking institutions are authorized by law to deal with money as such channel of economic development.
Basically, they assist in mobilizing funds from those that do not need them for current use, and lent it to those who need them for current productive purpose.
However, development functions of bank depends on its ability to create money or wanable funds are greatly influence by such factors as reserves ration, leakages of cash out of the bank to lend for such development purpose and the motives of holding cash.
On contrary, where the banks are willing to lend, the creative functions of banks would be hindered where the publics are not willing to borrow for the development activities
In view of the above, the researcher seek to examine the above principles or theories vis-à-vis the attitude of Akwa Ibom people toward banking institution and its economic development.
1.3 STATEMENT OF PROBLEM
The Nigeria economy today is a typical example of an embattled economy. That means it has been undergoing several and serious structural problems and dis-equilibrum. Like any other third would or less –developed countries the major problem of utilization of productive resources.
In a bid to maintain a healthy economic condition and correct these imbalance as enumerated above, the government has embarked on a number of economic measures to lesson the dominance of unproductive investments in the public sectors as well as improve the sectors efficiency and intensify the growth potential of the private sector. The government has also put in place numerous infrastructures and amenities to transform the nation into an industrial equalitarian society to enable people feed themselves and produce indigenous base raw materials for the home industries.
Despite these effort by the government, some state like Akwa Ibom State are still under-developed economy. It was against this background that this research was considered with the aim of examining the extend the banks which are the engine room of the nation’s economy has contributed to the economic development of the state.
This study was carried out with a view to providing valuable information that may be useful to:
1.7 ASSUMPTION OF THE STUDY
The roles of bank has been so important to the economic development of our state. It is assumed that interest rate would be moderate enough to encourage investor to borrow from the banks. It would be assumed that government monetary and fiscal policies will encourages banks to lend out money.
It will also assumed that money borrowed would be economically use for the purpose for which such loans was obtained.
It is assumed that borrower will repay accordingly to the repayable schedule to establish confident between banks and borrowers.
1.8 DEFINITION OF TERMS
The study was organized into five (5) chapters. Chapter one contain the following: The Introduction, Theoretical Foundation, Statement of the Problem, Purpose of the Study, Research Questions, significant of the study, Assumption of the Study, Limitation of the Study and Delimitation of the Study, Definition of Terms and Organisation of the Study.
Chapter two, this chapter present the literature review of the various authors in relevant field with the main topic beings discussed.
Chapter three, present the research of Methodology and Resign of the study.
Chapter four, present the data analysis and interpretation through the use of table and figures to explain the findings.
Chapter five, is the final chapter comprises the summary, recommendation, conclusions and appendix.
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