Role Of Commercial Banks In Credit Creation Capabilities And Its Effects On Socio-Economic Status Of Its Customers

A Case Study Of Zenith Bank, Kstu Branch
ABSTRACT

This research work examined the role and effectiveness of the credit creation capabilities of Zenith Bank Ghana Limited, KsTU Branch and its effect on socio-economic condition of the beneficiaries, to determine the contribution of credit facilities of the bank to its customers, to critically evaluate the role commercial banks (Zenith bank) play in the development of the national economy and to identify the constraints faced by the bank in undertaking its responsibilities. The primary data used for the project were gathered from questionnaires, interviews and observations while secondary data comprises journals, periodicals, articles on the World Wide Web, newsletters, books and annual reports. The consulted sample of the population were fifty one (51) consisting of one (1) manager and fifty (50) customers of the bank. In conclusion, it was recommended that lending officers should be trained, customers should be educated and management should be flexible in the speculations of its credit creation policies in order to absorb the unpredictable posture of government monetary policy guidelines. Again to avoid delays, infestation arising from failure to secure bank facilities, customers should be given current bank credit policies guidelines. We advocate that intensive education should be specified to customers on the effective use of credit that has been granted to them. There should also be limited credit requirement for loan applicants to be able to get access to credit.

TABLE OF CONTENTS

TITLE PAGE
DECLARATION
CERTIFICATION
DEDICATION
ACKNOWLEDGEMENT
ABSTRACT

CHAPTER ONE:
INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Problem 3
1.3 Aims/Objectives of the Study 4
1.4 Research Questions 4
1.5 Significance of the Study 4
1.6 Scope of the Study 5
1.7 Limitations of the Study 5
1.8 Organization of the Study 5

CHAPTER TWO:
LITERATURE REVIEW
2.1 Introduction 6
2.2 Overview of Credit Management 6
2.2.1 Definition of credit 6
2.2.2 Forms and importance of Credit 7
2.2.3 Credit Management 8
2.3 Credit Facilities offered by Commercial banks 9
2.4 Some Credit functions of Commercial banks 10
2.5 Credit Analysis and Appraisal 11
2.6 Duration of loans 13
2.7 Limitations on Credit Creation by Commercial banks 14

CHAPTER THREE:
METHODOLOGY
3.1 Introduction 15
3.2 Research Design 15
3.3 Population and Sample Size 15
3.4 Sampling Methods 15
3.5 Data Collection Method 16
3.5.1 Questionnaires 16
3.5.2 Interview 17
3.6 Data Collection Procedure 17
3.6.1 Primary Data 17
3.6.2 Secondary Data 17
3.7 Data Analysis Procedure 18
3.8 Brief History of Zenith Bank 18
3.8.1 Company Profile 18
3.8.2 Vision and Mission Statement of the Bank 20
3.8.3 General Objectives 20
3.8.4 The Regulatory Framework of Commercial Banks in Ghana 21
3.8.5 Supervision of Commercial Banks 22
3.8.6 Services and Products of the Bank 23
3.8.7 Functional Structure and Operations 23

CHAPTER FOUR:
DATA PRESENTATION AND ANALYSIS
4.1 Introduction 24
4.2 Data Analysis 24
4.2.1 Interview for the Credit Manager, Bank Manager and Questionnaires for Customers. 24
4.2.2 Demographic Features 25
4.2.3 Gender Variables of respondents 25
4.3 Analysis of Data 26
4.3.1 Procedure for Granting Credits to Customers 26
4.3.2 Credit Applications received and those granted for the last 5years 26
4.3.3 Collection of overdue debt from customers 27
4.4 Customers attitude towards the Bank in taking Loans 27
4.4.1 Number of customers who had applied for loans 27
4.4.1 Collateral security demanded before credit is given 28
4.5 Customers Accessibility to Loans 28
4.5.1 Accessibility to required loans or credit facility 28
4.5.2 Status of Customers who had been granted loans by the Bank. 29

CHAPTER FIVE:
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction 30
5.2 Summary of the Findings 30
5.3 Conclusion 31
5.4 Recommendations 32
References 34
Appendix I 36
Appendix II 39

APA

Role Of Commercial Banks In Credit Creation Capabilities And Its Effects On Socio-Economic Status Of Its Customers. (n.d.). UniTopics. https://www.unitopics.com/project/material/role-of-commercial-banks-in-credit-creation-capabilities-and-its-effects-on-socio-economic-status-of-its-customers/

MLA

“Role Of Commercial Banks In Credit Creation Capabilities And Its Effects On Socio-Economic Status Of Its Customers.” UniTopics, https://www.unitopics.com/project/material/role-of-commercial-banks-in-credit-creation-capabilities-and-its-effects-on-socio-economic-status-of-its-customers/. Accessed 22 November 2024.

Chicago

“Role Of Commercial Banks In Credit Creation Capabilities And Its Effects On Socio-Economic Status Of Its Customers.” UniTopics, Accessed November 22, 2024. https://www.unitopics.com/project/material/role-of-commercial-banks-in-credit-creation-capabilities-and-its-effects-on-socio-economic-status-of-its-customers/

WORK DETAILS

Chapters:
5
Pages:
52
Words:
12720

Here’s a typical structure for Role Of Commercial Banks In Credit Creation Capabilities And Its Effects On Socio-Economic Status Of Its Customers research projects:

  • The title page of Role Of Commercial Banks In Credit Creation Capabilities And Its Effects On Socio-Economic Status Of Its Customers should include the project title, your name, institution, and date.
  • The abstract of Role Of Commercial Banks In Credit Creation Capabilities And Its Effects On Socio-Economic Status Of Its Customers should be a summary of around 150-250 words and should highlight the main objectives, methods, results, and conclusions.
  • The introduction of Role Of Commercial Banks In Credit Creation Capabilities And Its Effects On Socio-Economic Status Of Its Customers should provide the background information, outline the research problem, and state the objectives and significance of the study.
  • Review existing research related to Role Of Commercial Banks In Credit Creation Capabilities And Its Effects On Socio-Economic Status Of Its Customers, identifying gaps the study aims to fill.
  • The methodology section of Role Of Commercial Banks In Credit Creation Capabilities And Its Effects On Socio-Economic Status Of Its Customers should describe the research design, data collection methods, and analytical techniques used.
  • Present the findings of the Role Of Commercial Banks In Credit Creation Capabilities And Its Effects On Socio-Economic Status Of Its Customers research study using tables, charts, and graphs to illustrate key points.
  • Interpret Role Of Commercial Banks In Credit Creation Capabilities And Its Effects On Socio-Economic Status Of Its Customers results, discussing their implications, limitations, and potential areas for future research.
  • Summarize the main findings of the Role Of Commercial Banks In Credit Creation Capabilities And Its Effects On Socio-Economic Status Of Its Customers study and restate its significance.
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