Thesis Abstract

Abstract
Bank lending plays a crucial role in the development of the economy, particularly in emerging markets like Nigeria. This research project focuses on the importance of bank lending to the development of the economy, using First Bank of Nigeria Plc, Enugu Branch as a case study. By examining the practices and impact of bank lending in this specific branch, the study aims to provide insights into the role of banks in driving economic growth and development. The research employs a mixed-methods approach, combining quantitative analysis of lending data with qualitative interviews with bank officials and customers. Through the analysis of loan disbursement patterns, interest rates, and repayment rates, the study aims to evaluate the effectiveness of bank lending in stimulating economic activities and promoting financial inclusion. Additionally, interviews with key stakeholders will provide a deeper understanding of the challenges and opportunities associated with bank lending in Nigeria. The findings of the research project are expected to contribute to the existing literature on the importance of bank lending in economic development. By focusing on a specific branch of First Bank of Nigeria Plc, the study offers a detailed and context-specific analysis that can inform policy decisions and business strategies. The research also aims to highlight the importance of financial institutions in supporting small and medium-sized enterprises (SMEs) and fostering entrepreneurship. The study identifies several key factors that influence the effectiveness of bank lending, including regulatory environment, risk management practices, and customer relationships. By addressing these factors, banks can improve their lending practices and better support economic growth. The research also highlights the need for collaboration between banks, government agencies, and other stakeholders to create an enabling environment for sustainable economic development. Overall, this research project underscores the critical role of bank lending in the development of the economy. By providing access to capital, banks can empower individuals and businesses to invest, grow, and create jobs. Through a comprehensive analysis of bank lending practices at First Bank of Nigeria Plc, Enugu Branch, this study aims to offer valuable insights that can inform policy decisions and contribute to the overall development of the Nigerian economy.

Thesis Overview

1.0 INTRODUCTION

Banks generally provide avenue for saving to those who have surplus funds. The surplus deposits are then lent out to the needy personal, cooperate bodies and business customers in form of loans, advances and overdrafts. This proves the statement that “Banks serves as major intermediaries between the demand sector (which need credit to finance projects) and the supply sector (which provide such loan-able funds for such investments)”.
Credits facilities are usually in form of loans, advances, bills discounted bonds and over drafts. Lending is one of the most intricate services rendered by banks and credit facilities are integral part of bank lending. Therefore, this project will in detail analyze the basic principles of bank lending and the mechanics of safe lending permeating the financial statement and interpretation.
It is an indisputable fact that most important asset items in the balance sheet of commercial banks are loans and advances; these items are reported for some good reason. From the bank perspectives they are the largest sources of income.