THE EFFECT OF GOVERNMENT POLICY ON COMMERCIAL BANK LENDING ABILITY IN NIGERIA A CASE STUDY OF UNION BANK. A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
This research work is aimed at satisfying those who have interest in the effect of government policy on commercial banks lending ability in Nigeria (1999-2005) especially the bankers throughout the world who are involved in financial transaction with Nigeria.
The data required for achieving these questionnaire, Newspaper, Journals union bank Bullion were used.
Finally, the title the effect of government policy on commercial bank lending ability in Nigeria (Union Bank) as discussed in this project does not supply enough information needed, therefore there would be need for an investigation into the extent of actual effect on lending ability of commercial bank.
This chapter deals with the back ground of the study, statement of problems, objectives of the study, research question, significance of the study, hypothesis, scope limitation of the study and definition of items.
1.1 BACKGROUND OF THE STUDY
The banking system in Nigeria has undergone radical changes during the 35 years since independence . Banking developed from an industry which in 1960. was dominated by a small number of foreign owned banks into, one in which public sector ownership predominated in 1970s and 1980s and in which Nigeria private investors have played an increasingly important role since the mid 1989’s government polices had a major influence on developments in the banking industry. Extensive government intervention characterized financial sector policies beginning in the 1960s and intensifying in the 1970s, the objective of which was to influence resource allocation and promote indigenisation. Since 1987 financial sector reforms have been implemented, encompassing elements of liberalization and measure to enhance prudential regulation and tackle bank distress.
The effect of government polices on the commercial bank lending in Nigeria in the period since independence all examine how banks were affected by public ownership and polices of financial repression the reasons behind the growth of Local Private sector banks, to causes of the financing distress in the banking industry and the efficacy of financial reforms undertaken. We aim to explore two related issues first, that government control on financial markets.