1.1. BACKGROUND OF THE STUDY
The name bank is derived from the Italian word banco desk/bench used during the renaissance by Florentine bankers who used to make this transaction above desk covered by a green table cloth. However, there are traces of banking activities even in ancient time. In fact, the word traces its origin back to the ancient Roman Empire, where money lenders would set up their stalls in the middle of enclosed country and called macella on a long bench called bancu, from which the word bancu and bank are derived. Mckenna & Fleming (1995) described competition as a market condition which exist when there are large number of business enterprise, all able to supply the same or similar products or service to a large number of purchase/buyers. In this last decade there has been a high competition within the banking industry in Nigeria, with the licensing and establishment of more banks bringing the total number of commercial and merchant bank in the country to about eight – seven , there has been high tendency for various banks in the industry to fend for themselves for survival.
A commercial bank is defined as an establishment which accepts deposit from customers that are prepared which loans an advances and general financial business concerning all forms of trade are made. Examples of such trade are retail, wholesale, import and export trade. The 1991 banking decree defines a commercial bank as any institution which carries out banking business in Nigeria, which includes a commercial bank, a discount house, financial institution and an acceptance house. (Federal Republic of Nigeria 1991). The commercial banking industry in Nigeria has been positively affected by competition. In attempt by commercial banks to fend for themselves many method have been adopted to improve corporate efficiency and maximize profit. This method led the Nigeria banking into scientific approach and investigation into better ways to achieve corporate goals and objective