Roles of Deposit Money Bank in Nigeria Growth and Development
CHAPTER ONE
OBJECTIVES OF THE STUDY
The following are the objectives of this study:
- To examine the activities of the money deposit banks.
- To examine the impacts of money deposit banks on the economic development of Nigeria.
- To examine the relationship between money deposit banks and economic development of Nigeria.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Theoretical work
The Role of banking industry to the growth and the development of the real sectors can be traced to the emergence of intermediation theories. In other words, our understanding of the role or roles played by banks as intermediaries both in the financial sector and real sector is found in the many and varied models in the areas known as intermediation theories, (Gurley and Shaw 1960). The proponents of these theories expressed that the banking sector of the economy could impact real sector‟s economic growth through the catalytic effect of adequate fund injection, regulation, technological innovation and capital accumulation. Pioneer contribution of Schumpeter (1934) is of the view that financial institutions are necessary conditions for economic development. This view has been variously corroborated by other scholars like Gibson (1995), Cameron (1972), Desai (1995) and Gorton and Frank (2000). Bagehot (1991) gave explicit examples of how money market developments in England could make capital flows across the country in search of the highest rate of return. Contrary to these models, the traditional Arrow-Debreu model theory of resource allocation stated that firms and households interact through markets and financial intermediaries (banks) play no role. This theory states that when markets are perfect and complete, the allocation of resources is efficient and there is no scope for intermediaries to improve welfare. Moreover, the Modigliani-Miller theorem applied in this context asserts that financial intermediation does not matter in the growth and development of the real sectors: households can construct portfolios which offset any position taken by an intermediary and intermediation cannot create value (Fama, 1980). A traditional criticism of this standard market-based theory is that a large number of credit facilities are needed for it to hold except in special cases. However, the development of continuous time techniques for option pricing models and the extension of these ideas to general equilibrium theory have negated this criticism. Dynamic trading strategies allow markets to be effectively complete even though a limited number of facilities exist. Such an extreme view – that financial markets allow an efficient allocation and that intermediaries have no role to playis clearly at odds with what is observed in practice. Historically, banks as major financial intermediaries have played a central role in the growth and development of the real sectors. The role played by Deposit Money Banks as intermediaries both in the financial sector and real sector is found in the many and varied models in the areas known as intermediation theories.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to Roles of Deposit money bank in Nigeria growth and development
Sources of data collection
Data were collected from two main sources namely:
Primary source and Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
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