CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND OF THE STUDY
The goal of every government of nay economy is to archive equilibrium in the economic system. It is therefore important that the authorities concerned must regulate the system indirectly with policies. This necessitates that government of any country adopting certain economic policies in order to consolidate specific macro-economic goal or objective. Some of such major economic policies include the monetary policies, fiscal policies, exchange rate policies, most of this policies can only be administered thorough the agent of commercial bank which is the pivot of this research work. In Nigeria for instance. Monetary policies have been conducted under wiled ranging economic environment since the establishment central bank of Nigeria (CBN) over many years ago. Basically, monetary and finical polices serve as one of the vital and strategic economic policy adopted by the government of the country in posturing the economic development with a view of consolidating certain economic goals such as acceleration of the economic growth, sustainable balance of payment, maintaining a stable exchange rate of international competitive level, combating inflation, price stability and full employment.
Monetary policy is defined according to the CBN briefs 1994 as the combination of measures design to regulate the values supplied and cost of money in an economy. In consonance with the level of economic activity. Anyanwu (1993, VS 140) refer monetary policies as major stabilization weapon involves measure designed to regulate and control the volume, cost, and availability and direction of money and credit in an economy to archive some specified macro-economic policy objectives. Fiscal policy on the other hand is an attempt by the government using expenditure and tax policy to shift the aggregate demand and aggregate expenditure functions towards desired position. According to Anyanwu (1997, VS 241) fiscal policy is taking to refer to that part of government policy is concerning the raising of revenue and deciding on the level and pattern of expenditure fore the purchase of influencing economic activities or attaining some desirable macro-economic goods. The intricacy in handling the monetary and fiscal policy to consolidating the desired macro-economic objective necessitate that needs for an independent authority so in Nigeria today. The federal government is the sole monetary authority, but it has delegated some aspect of implementation to both the ministry of finance and the central bank of Nigeria is to formulate and execute monetary policy, to promote financial system. To archive a desired policy objective, the CBN is empowered to use monetary policy techniques or instrument and the CBN dose most of its function through he commercial banks. This techniques can be classified into group, the direct portfolio control and the indirect portfolio approaches. Indirect portfolio includes the open market operation (OMO), reserve requirements, discount rate mechanism. While direct instrument includes; selective credit control, credit selling and moral suasion. Furthermore monetary policy presupposed that there is some relationship between the supply and the demand for money on the one hand economic aggregate such as output, income, savings, general price level and investment. The mix of monetary policy instrument to be used and its effectiveness depends on this relationship. Monetary policy involves monetary management. Monetary management according Ojo (1992, VS 3) is defined as the act of controlling the movement of monetary and credit aggregate in the issuancxce of stable price and sustainable economic growth. Therefore the Central bank or the central monetary authorities must attempt to keep the money supply growing at an appropriate rate o insure sustainable economic growth, domestic and external stability. Howe ever, in Nigeria the role of monetary and fiscal policy has increased tremendously since after independence. Both civilians and minitry government has adopted this policies consolidate macro objectives. But despite this measure to suit the constant changes in the economic situation of Nigeria, still a lot of problem be deviled the economy ranging from high unemployment, inflation and balance of payment. This prompted me to research on examination of the roles of commercial banks in consolidating stability in foreign exchanges.
TABLE OF CONTENT
Title page
Approval page.
Dedication
Acknowledgement
Table of content
CHAPTER ONE:
1.1 The background of the study
1.2 Statements of problems
1.3 Objective of study
1.4 Significance of study
1.5 Limitation of study
1.6 Definition of terms
1.7 Reference
CHAPTER TWO:
2.0 Review related to literature
2.1 Genesis of banking in Nigeria
2.2 Type of banking in Nigeria
2.3 Functions of banking
2.4 Similarities and differences among banks
2.5 Role of bank in the economic development
2.6 The Nigeria banking climate
2.7 Problems faced by banks
2.8 The concept of banking failure
2.9 Causes of banking failure
2.10 Indices of banking failure
2.11 Effect of bank failure
2.12 Reference.
CHAPTER THREE:
3.0 Research methodology
3.1 Source of secondary data
3.2 Method of analysis
3.3 Location of data
3.4 Reference
CHAPTER FOUR:
4.0 Findings
4.1 General discussion
4.2 Reference
CHAPTER FIVE:
5.0 Recommendation and conclusion
5.1 Recommendation
5.2 Conclusion
5.3 Biography
INTRODUCTION
1.0 BACKGROUND OF THE STUDY
The goal of every government of nay economy is to archive equilibrium in the economic system. It is therefore important that the authorities concerned must regulate the system indirectly with policies. This necessitates that government of any country adopting certain economic policies in order to consolidate specific macro-economic goal or objective. Some of such major economic policies include the monetary policies, fiscal policies, exchange rate policies, most of this policies can only be administered thorough the agent of commercial bank which is the pivot of this research work. In Nigeria for instance. Monetary policies have been conducted under wiled ranging economic environment since the establishment central bank of Nigeria (CBN) over many years ago. Basically, monetary and finical polices serve as one of the vital and strategic economic policy adopted by the government of the country in posturing the economic development with a view of consolidating certain economic goals such as acceleration of the economic growth, sustainable balance of payment, maintaining a stable exchange rate of international competitive level, combating inflation, price stability and full employment.
Monetary policy is defined according to the CBN briefs 1994 as the combination of measures design to regulate the values supplied and cost of money in an economy. In consonance with the level of economic activity. Anyanwu (1993, VS 140) refer monetary policies as major stabilization weapon involves measure designed to regulate and control the volume, cost, and availability and direction of money and credit in an economy to archive some specified macro-economic policy objectives. Fiscal policy on the other hand is an attempt by the government using expenditure and tax policy to shift the aggregate demand and aggregate expenditure functions towards desired position. According to Anyanwu (1997, VS 241) fiscal policy is taking to refer to that part of government policy is concerning the raising of revenue and deciding on the level and pattern of expenditure fore the purchase of influencing economic activities or attaining some desirable macro-economic goods. The intricacy in handling the monetary and fiscal policy to consolidating the desired macro-economic objective necessitate that needs for an independent authority so in Nigeria today. The federal government is the sole monetary authority, but it has delegated some aspect of implementation to both the ministry of finance and the central bank of Nigeria is to formulate and execute monetary policy, to promote financial system. To archive a desired policy objective, the CBN is empowered to use monetary policy techniques or instrument and the CBN dose most of its function through he commercial banks. This techniques can be classified into group, the direct portfolio control and the indirect portfolio approaches. Indirect portfolio includes the open market operation (OMO), reserve requirements, discount rate mechanism. While direct instrument includes; selective credit control, credit selling and moral suasion. Furthermore monetary policy presupposed that there is some relationship between the supply and the demand for money on the one hand economic aggregate such as output, income, savings, general price level and investment. The mix of monetary policy instrument to be used and its effectiveness depends on this relationship. Monetary policy involves monetary management. Monetary management according Ojo (1992, VS 3) is defined as the act of controlling the movement of monetary and credit aggregate in the issuancxce of stable price and sustainable economic growth. Therefore the Central bank or the central monetary authorities must attempt to keep the money supply growing at an appropriate rate o insure sustainable economic growth, domestic and external stability. Howe ever, in Nigeria the role of monetary and fiscal policy has increased tremendously since after independence. Both civilians and minitry government has adopted this policies consolidate macro objectives. But despite this measure to suit the constant changes in the economic situation of Nigeria, still a lot of problem be deviled the economy ranging from high unemployment, inflation and balance of payment. This prompted me to research on examination of the roles of commercial banks in consolidating stability in foreign exchanges.
TABLE OF CONTENT
Title page
Approval page.
Dedication
Acknowledgement
Table of content
CHAPTER ONE:
1.1 The background of the study
1.2 Statements of problems
1.3 Objective of study
1.4 Significance of study
1.5 Limitation of study
1.6 Definition of terms
1.7 Reference
CHAPTER TWO:
2.0 Review related to literature
2.1 Genesis of banking in Nigeria
2.2 Type of banking in Nigeria
2.3 Functions of banking
2.4 Similarities and differences among banks
2.5 Role of bank in the economic development
2.6 The Nigeria banking climate
2.7 Problems faced by banks
2.8 The concept of banking failure
2.9 Causes of banking failure
2.10 Indices of banking failure
2.11 Effect of bank failure
2.12 Reference.
CHAPTER THREE:
3.0 Research methodology
3.1 Source of secondary data
3.2 Method of analysis
3.3 Location of data
3.4 Reference
CHAPTER FOUR:
4.0 Findings
4.1 General discussion
4.2 Reference
CHAPTER FIVE:
5.0 Recommendation and conclusion
5.1 Recommendation
5.2 Conclusion
5.3 Biography