IMPACT OF DEVELOPMENT BANKING IN NIGERIA
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IMPACT OF DEVELOPMENT BANKING IN NIGERIA
ABSTRACT
The purpose of this project is to demonstrate the influence of development banking in Nigeria utilising the federal mortgage bank (FMBN) as a case study.
The goal of this research is to determine whether there are any issues confronting these banks in Nigeria that are causing development in Nigeria, as well as the perspectives of other researchers on this area of study. Finally, to understand how these banking advancements have led to economic progress and the expansion of economic funds.
INTRODUCTION TO CHAPTER ONE
1.1 BACKGROUND OF THE STUDY
In a developing economy like as Niger, multiple financial intermediaries are required to finance the various sectors of the economy. These sectors include agriculture, industry, housing, and commerce, among others. Banks are one of the financial intermediaries in Niger that accept deposits and finance certain legal initiatives.
There are three types of banks in Nigeria: merchant banks, commercial banks, and development banks. Three, there has always been a problem identifying the role of the three banks in the development of the country; in most circumstances, people regard these diverse banks as having and playing the same impact on an economy.
Based on this assumption and belief, the researcher wishes to investigate the separate influence and role of development banks in the absence of a federal mortgage bank as a case study.
The researcher wishes to evaluate how the federal mortgage bank has aided in the development of the economy, as well as the issues encountered by developments in Nigeria.
1.2 THE PURPOSE FOR THE STUDY
The study’s rationale is to increase the level of banking system assistance to current financial institutions. The establishment of development banking in Nigeria was motivated by the deficiencies of the existing financial institutions in meeting the needs of the industrial and agricultural sectors.
The system has made significant contributions to the agricultural and development sectors of the economy, as well as to the Nigerian financial system.
This came to be and the perfection of its goal in the distribution of funds to ensure a health economy and a strong financial system. It has greatly aided in the development of the Nigerian banking system?
1.3. SIGNIFICANCE IS DETAILED OF THE STUDYIN
The Nigerian development banking sector is critical and of critical importance to Nigeria. Its financial services are precisely needed, resulting in the nation’s economic prosperity to continue.
Its contributions are listed below.
A The country can build a sophisticated financial system through development banking.
B This banking makes the issuance of loans viable in terms of both long and short term credit.
c. Assist in the distribution of financial resources to various sectors of the economy.
d. It aids in the development of experiments for developing incentives and regulators that effectively motivate private organisations to distribute finance to specific areas deserving of priority.
1.4 DEFINITION OF TERMS
BANKS: In this context, this refers to all development banks that operate within the Nigerian banking market.
BANKING: This is defined as the practise of accepting deposits and making loans, as well as providing monetary and advising services.
DEVELOPMENT: This is defined as a progression or sophistication in any activity, whether in administration, banking, or other areas where activities may encounter development. Banking development entails an increase in the level of understanding of activities as a result of the emergence of civilization, industrialization, technology, and so on.
IMPACT: This is a contribution or assistance in causing a circumstance or condition to confront a work in progress. It is also an endeavour to gain information in any part of development. Impact is an intrusion into a system activity condition or scenario in order to gain a well-structured and standardised understanding of whatever is happening.
growth BANK: A financial entity established to assist merchant banks in areas where they are not meeting up in the generation of short and long term credit for economic growth.
DEVELOPMENT BANKING: This is a government-created framework that aids in the allocation of funds or financial resources to various sectors of the economy. It has also been established to devise incentives and rules that would effectively persuade private institutions to carry out her tasks that deserve priority.
BANKS FOR DEVELOPMENT: The following are some of the development banks discussed here:
1. NIGERIA’S FEDERAL MORTGAGE BANK:
This was created in order to provide long-term loan facilities to other mortgage institutions. It was also established to encourage mortgage institutions in the country. Furthermore, it intends to provide loans at a government-determined interest rate.
NACROB (NIGERIA AGRICULTURAL AND COOPERATIVE AND RURAL DEVELOPMENT BANK)
This was formed as a result of the merger of three development banks that were not operating successfully towards the attainment of their goals. It is about making a deposit.
It also makes loans to individuals and cooperative societies for all types of agricultural initiatives, small-scale craftsmen, and other businesses.
3. THE NIGERIAN BANK FOR BUSINESS AND INDUSTRY:
This bank was designed to expedite the promotion of Nigerian enterprises. It also intends to transfer funds to industrial area developments and all associated commerce and commodities.
NIGERIAN INDUSTRIAL DEVELOPMENT BANK (NIDB)
This is a bank designed to aid in the development of industrial initiatives. It provides loans for industrial development initiatives.
It also provides guidance to prospective foreign exchange investors. It also creates alternative options for profitable investments in Nigeria by fostering the growth of capital markets.
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