Chapter One One
Chapter One One
economic growth
Enabulu (2010), stated that the banking industry is the hub of productive
activity as it performs the vital role of financial provision and effective payment
one of the most important positions in modern economic world. Hence, it is one
of the great agencies of commerce, although, banking in one form or another has
been in existence from early times, modern banking is of recent origin. It is one
of the result of the industrial revolution and the child of economic necessity.
country.
1
The banking system is a catalyst and engine of growth that is responsible
for growth of every sector of the economy. It is evident that no sector in the
economy can flourish without the support and service of the banking sector even
Okpara (2009) supports the above ideas when he noted that banks represent the
nerve centre of the payment system, the vessel endowed with the ability of
money creation and allocation of financial resources and through which monetary
and credit policies are implemented. There are basically two types of banks.
These are the regulatory and participatory banks. The regulatory banks are the
central banks, while the commercial banks, merchant banks, development banks,
participatory banks.
receive money from business and individuals and lend money to them. According
safekeeping of money, valuable goods and documents like wills and others. They
manpower development. He said the existence of banks has been a big boost to
making more funds available from resources mobilized. They are involved in the
process of increasing the wealth of the economy particularly the capital goods
policy and they provide some value added from transferring funds from savers to
The First Bank of Nigeria Plc is one of the Nigeria top three commercial
banks. Founded in 1894 as bank of British West Africa renamed First Bank of
Nigeria in 1979. It is the biggest bank in Nigeria by total deposits and gross
earning with assets totaling N3.9 trillion and over 750 business locations across
Africa. First Bank operates along four key, strategic Business Units (SBUs).
of funds from surplus units of the economy to the deficits units of the economy
for investment purposes through their 790 branches spread all over Nigeria which
brought an impressive growth. Some economist believe that the economic status
of any nation depends to a large extent on how effective their banking industries
are. The study is meant to discuss the need for the establishment of commercial
plays a major role in the economic growth and development. The commercial
bank offers credit to entrepreneur to develop and expand their businesses. Most
3
businesses are conducted through banking system. The safe keeping of money
and other valuables is a great concern for average Nigerians. Moving of huge
cash from one point to the other is a very dangers venture because of the rampant
armed robbery cases in Nigeria. Many Nigerians meet their untimely death on the
road in search of going to the urban areas to deposit or withdraw their money.
Okehi local government are, for the past three years one of the major problem of
the community dwellers is lack of commercial bank in the community to aid them
in their day to day business. A larger portion of the community depended on the
commercial banks in Okene town. Most cases, the dwellers where faced with
Okene and were waylayed by arm robbers, killed by accident and lost of many
interaction with the dwellers showed that everybody has a complaint against the
commercial banks why one commercial bank is not cited in Okehi local
government area. It is therefore clear from the foregoing that there is need for
Government area . Therefore the researcher decided to carry out a research titled
the Needs for the Establishment of the Commercial Bank in Okehi local
4
1.3 Purpose of the Study
The general objective of the study is to assess the Needs for the
Government area
question:
1. What are the needs for the establishment of commercial in Okehi Local
5
1.5 Significance of Study
This study will provide an opportunity for any person who may read it to
appreciate what the need of commercial bank in the rural development means.
The findings of this project will help to bring to the limelight the actual
The study will be important to the policy makers and the Federal
government in order to adopt and implement policy measures that will boost the
economy through the financial institution. Also, it will enable the government to
Also, it will help researchers to know the people view towards banking.
It will also depict the negative and positive side of the activities of the
general public and bankers, for some correction and changes in order to boost the
economy.
examine the economic activities in the region, the challenges posed by the
6
absence of a commercial bank, and the possible benefits of establishing
commercial bank in okehi local government area for the benefit of the citizens