THE ROLE OF COMMERCIAL BANKS IN THE FACE OF A DEPRESSED ECONOMY

(A CASE STUDY OF FIRST BANK OF NIGERIA PLC)

By

EZE, BLESSING NGOZIKA

Presented To

Department of Accountancy

ABSTRACT

Section 2 of the Bills of Exchange Act 1882 provides that “In this Act, unless the context otherwise requires ‘bankers’ includes a body of person, weather incorporated or not, who carry on the business of banking”.
Business of banking according to Hillsburgh’s law of England, ‘is the receipt of money on current or deposit account and the payment of cheques drawn by and the collection of cheques paid in by a customer.
The nature and role of bank in the financial intermediation portray the institution a very vulnerable.  The primary sources of banks funds are deposits form other banks, private customers and other corporate organizations.  Such deposits usually short termed, are of course; legally repayable in full to the depositors on demand whether or not the bank is successful in investing the money received.
This study, examines the roles of commercial banks in the face of a depressed economy in order to bring revival and development.
To accomplish these objectives stated above, the study will analyze the financial roles economic roles and the impact they will have on a depressed economy.
A good number of commercial banks will be studies with major focus on first bank of Nigeria PLC to see how much role commercial banks has played in our economy.
Finally, based on the result of the survey and studies carried out, recommendations aimed at efficient discharge of commercial banks role were made.

TABLE OF CONTENTS

Title page          i
Approval page         ii
Dedication          iii
Acknowledgement         iv
Abstract          v
Table of contents         vii
List of tables         x
List of figures         x

CHAPTER ONE
Introduction          1
1.1 Background to the study       4
1.2 Statement of the problem       7
1.3 Objective or purpose of the study     7
1.4 Limitation of the study        8
1.5 Research question        8
1.6 Hypothesis         9
1.7 Significant of the study       9
CHAPTER TWO
Review of related literature       12
2.1 What are commercial banks      12
2.2 Role Definition        14
2.3 The role of commercial banks in the
various sectors of the economy      15
2.4 Commercial banking operations      31
2.5 Sources of fund for commercial banks     34
2.6 Commercial banks regulations by Central Bank of Nigeria 37
2.7 The social responsibilities of business organization   50
2.8 Banks social responsibilities      55
2.9 Bank failure in Nigeria       58
CHAPTER THREE
Research Methodology        74
3.1 Research Design        74
3.2 Area of study        74
3.3 Population of the study       74
3.4 Sampling procedure       75
3.5 Instruments of data collection      76
3.6 Validation of research instrument     77
3.7 Reliability of research instrument     77
3.8 Method of administration of research instrument   78
3.9 Method of data analysis       78
CHAPTER FOUR
Data Presentation and Analysis       80
CHAPTER FIVE
Discussion, Implication:  Recommendations     98
5.1 findings         98
5.2 Conclusions         100
5.3 Implications         101
5.4 Recommendation        102
5.5 Suggestion for further research limitation to the study  104
Bibliography                           105
Appendix.          107

LIST OF TABLES
1 Observation table questionnaire respondents
2 Questionnaire question
3 Questionnaire respondent
4 Questionnaire respondent
LIST OF FIGURES
1. A bar chart
2. Histogram
3. Pie chart
4. X2 figures.