ABSTRACT
This study was able to ascertain a review of the investment activities of commercial banks – the impact it has on the economy judging from the fact that the consistent decline in the nations external reserve is as a result of little attention to the productive sector of the economy. This research work was able to identify the various forms of investment undertaken by the commercial banks specifically that of First Bank and Union Bank having identified them, it also went further to find out how the nation has benefited from these activities.
Furthermore the works of other authors concerning the topic were also intact in the literature review statement of this report. This write up also presented the tests of the findings and interpretation of data gathered.
Finally in drawing at my conclusions, interviews were conducted and statistical tests such as Chi Square employed in analysing data collected in the course of study.
Chine Obinna
October, 2003.
TABLE OF CONTENTS
Page
Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of contents
CHAPTER ONE
- Introduction
1.1 Statement of the Problem
- Purpose of the study
- Significance of the study
- Statement of Hypothesis
- Scope of the study
- Limitation of the study
CHAPTER TWO
- REVIEW OF RELATED LITERATURES
2.1 Definitions(s)
- Functions
CHAPTER THREE
3.0 RESEARCH DECISION AND METHODOLOGY
- SOURCES OF DATA
- PRIMARY DATA
SECONDARY
SAMPLE USED
- METHOD OF INVESTIGATION
CHAPTER FOUR
4.0 Data presentation
- Data analysis
- Test of Hypothesis
CHAPTER FIVE
- SUMMARY OF FINDINGS, CONCLUSIONS
AND RECOMMENDATIONS.
5.1 CONCLUSION
- RECOMMENDATIONS
BIBLIOGRAPHY
APPENDIX
CHAPTER ONE
INTRODUCTION
The Nigerian business environment is actually an opportunity ridden environment considering the high interest on capital investments, it has become common that the commercial banks now spread under in their scope of investment. More banks are now engaged in investing on telecommunications, transportation, small scale enterprise functioning, education and foreign investment. It is also believed that the real estate financing is a money spinning business if properly managed (Ogundipe 2002), the attendant benefits will be to provide housing at lesser costs, creation of employment, provision of raw materials, making exports product available which will go a long way in the creation of wealth and also contribute in the nations economic growth.
- PURPOSE OF THE STUDY
This study becomes relevant in order to create awareness on the various forms of investments the commercial banks participate in.
There’s need for these investments as it will go a long way in revealing to the society the level of on going investments financed by these banks in the country, their contribution so far and impact made on the various sectors of the economy, in order to show acknowledge.
- SIGNIFICANCE OF THE STUDY
The significance of this study cannot be over emphasized. The outcome of the research work will be most significant to others numerous potential investors who inquire to know more on forms of investments and instruments that have quick returns. And also to economic analysts who analyse situations of various econoimic sectors.
Finally, it will equally be significant to other researchers and research scholars who may wish to carry out further research on the subject matter or any related topic.
- STATEMENT OF HYPOTHESIS
The following hypothesis shall be subjected to testing.
Hypothesis 1.
Ho: Small and medium scale enterprises by the commercial banks under study (First Bank, Union Bank & UBA) has not generated more significant employment.
Hi: Small and medium scale enterprise financing by the 3 commercial banks (First Bank, Union Bank & UBA) generates more significant employment.
Hypothesis 2:
Ho: Real estate financing by the three commercial banks (First Bank, Union Bank & UBA) has not improved housing development in Nigeria.
Hi: Real estate financing by the three commercial banks (First Bank, Union Bank & UBA) has improved housing development in Nigeria.
Hypothesis 3
Ho: Financing of agricultural products by these banks (First Bank, Union Bank & UBA) has not increased food supply to the nation.
Hi: Financing of agricultural products by these banks (First Bank, Union Bank & UBA) has increased food supply to the nation.
- SCOPE OF THE STUDY
As earlier stated, the Nigerian business environment is an opportunity ridden environment. Also attributable to the consistent decline in the nations external reserve which is as a result of little attention to the productive sector of the economy. This stirred up the latest of the commercial banks in eusuring that the real sector is given proper attention by making available various schemes and also providing resources for implementation of policies to ensure steady increase in the nations external reserves.
In view of the above, the researcher deemed it fit to adopt a thought provoking topic in order to review the implications of the bank activities.
- LIMITATION OF THE STUDY
This study will examine the types of investment undertaken by the banks under study and the impact so far on the economy in line with the objectives.
The scope of this study is limited by:
- Time: The researcher was given only four months in addition to his class work to submit the research work which deals with a topic as broad and vast as this study.
- Mobility: A research work most emphatically, so problematic topic as this could not have been possible without adequate utilization of library services. These libraries unfortunately are not located in the same area and hence needed some expenditure to move around from one library to another. The case is not also different when addressing the bank in the area of study. Mobility posed problems to a great extent put paid the collectible data necessary for the development of this week.
- Finance:- Based on the fact that the researcher relied on public transportation in her search for data relevant to this topic. I encountered financial problems. These problems became worse, most especially in the researcher status as a student who had little or nothing financially wise. As a result, most of the oral interviews and some first hand materials from the area of research which under normal circumstances would have been photocopied was beset by this handicap.
- Pressure of work:– The researcher in addition to writing this project has other courses to tackle which he must pass since the project alone cannot make up the certificate. So the attempt to combine all these posses a great problem to the researcher.
- DEFINITION OF TERMS
Commercial banks:
A commercial bank may be defined as a financial institution which deals in money and credit. They are public limited companies owned by shareholders. They receive deposits payable on demand by cheque, and they carry out other services such as maximising profit by trading in money, giving of loans to private and public organisation.
Economy:
This is the system by which a country’s health is produced and used.
External Reserves:
This is defined as a nations foreign exchange account. It is a factor used by a nation to determine the growth rate of its economy and its relationship with other countries of the world.
Investment Activities:
These are profit making activities that yield returns for a firm or organisation.
Real sector:
This is that aspect of a countries economy that constitutes the majority of wealth generated in that country. For example, agriculture, mining and quarrying, oil, real estate insurance, communication and finance.
Real Estate:
By this, we mean any structure in housing form. It could be an industry or residential house.
Small and Medium Scale Enterprise
These are micro enterprises or small businesses. They include group, individuals, cooperative societies and self help groups.
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