THE IMPACT OF INTEREST RATE DEREGULATION ON COMMERCIAL BANKS’ LENDING OPERATIONS IN NIGERIA (A SURVEY OF UNION BANK OF NIGERIA PLC ENUGU. A RESEARCH PROJECT MATERIAL ON ACCOUNTING
Interest rate was before 1st August, 1987, statutorily regulated by the Central Bank of Nigeria. But this out of the tune with the liberalization policy of the structural adjustment programmes of the Federal government. This research is an attempt at performance appraisal of the leading operations of commercial banks in the face of the deregulation of interest rate which is in consonance with the Federal Government stand on the use of market forces of demand and supply in resources allocation and determination of price. The major sources of data for this research are primary and secondary data. This research has five chapters, Tables and Graph. I will use research methodology. This is how my research work will look like.chapter one is introduction, background of the study, statement of the problem, objectives, scope, significance and limitation of the study, Hypothesis etc.
1. chapter two, Review of related literature, financial repression hypothesis, financial repression in Nigeria, interest rate manipulation before deregulation etc.
2. chapter three, will be research design and methodology, population of commercial banks, Determination sample size, bank customers size etc.
3. chapter four is presentation and analysis of data, rate of return of questionnaires etc.
4. chapter five will be conclusion
1.1 BACKGROUND OF THE STUDY
There had been administrative control on the nation’s interest rates until July 31, 1987 when, in consonance with the spirit of the structural Adjustment programme (SAP) of the Federal Government the Central Bank of Nigeria issued a circular on interest rates bordering on the deregulation of this financial sector of the economy.
As a signal to the direction, the Central Bank wanted the interest rate to go, the minimum Re-discount Rate (MRR) was raised from 11 to 15% which now peaks at 18.5%. The apex financial institution (CBN) declared that interest rates payable on deposits or chargeable on loans and advances were henceforth to be determined by the interplay of the market forces of demand and supply.