IMPACT OF FINANCIAL INSTITUTION ON THE PERFORMANCE OF MICRO FINANCE INSTITUTION. A RESEARCH PROJECT MATERIAL ON ENTREPRENEURSHIP
1.1 BACKGROUND TO OF STUDY
The banking of any country constitutes a crucial instrument for economic growth and development. It provides a vehicle for the mobilization of fund from the saving surplus sectors of an economy to the saving deficit sectors. According to Duoglal and Gambits (1986) Capital Market comprises of institutions and mechanism through which intermediate and long-term fund are pooled and made available to business, government and individuals. This allocate role of the capital market is vital for the overall development and growth of an economy. In respect of the vital roles as the capital in an economy many countries including Nigeria have established or facilitated the established of the capital markets.
These consists both the primary (New Issue) market and secondary (Stock). The history of the Nigeria capital market dates back to 1946 when the first public issue of securities was stated by the federal government of Nigeria for infrastructure development.
More so, a lot of development has taken place in the Nigeria capital market, for example the Lagos Stock Exchange was incorporated in 1961 as a non-profit organization limited by guarantee. It was later renamed the Nigerian Stock Exchange (NSE) in 1977. For now, there are nine branches of the Nigerian Stock Exchange located in F.C.T Abuja, Lagos, Kaduna, Port Harcourt, Kano, Ibadan, Onisha, Yola and Benin City. The objective of the NSE as contained in its memorandums and Article of Association include among others the provision of facilities for trading in securities and ensuring fair and equitable prices for securities.
It is significant to note that the Nigeria Securities and Exchange Commission (SEC), which is the apex regulatory body for the Nigeria Capital Market, was established in 1979. The SEC evolved from the capital issue commission which was created in 1962 to regulate the activities of the Nigeria Capital Market by protecting investors through orderly fair and equitable dealing in the market.