MEANING AND BACKGROUND OF BANKING IN NIGERIA

MEANING AND BACKGROUND OF BANKING IN NIGERIA

According to agricultural credit act 1928 of Great British a bank is defined as any firm incorporation, company or society carrying on banking business.
Also Dr. H.L Hart on eminent banking authority an England in his book law of banking defines a “bank as a company carrying on business of receiving money and draft upon them from time to time by a customer to the extend of the amount available on their current account.

According to Dr. Wale Adewunmi in his book banking and finance in Nigeria Graham Born London (1989) agreed that the quality and usefulness to an extend by the manner of efficient staff by his action and without saying one word to that effect invited you to come back next time and even to encourage good image of bank. According to Dr. Wale is build through advertisement, publicity a contract with a nudle is efficient staff of bank remove and best badly client that images.

According to Sayer’s (1961) in his book modern banking gave detail definition of bank thus: ordinary banking business consist of changing cash from bank deposit from person or incorporation come (one deposit) to another, give bank deposit in exchange for bill of exchange government bond, the secured or insecured promise to business to repay etc. from the legal view point section 41 of banking act 196 (formally, banking decree 1969) defined a bank as any person carrying on banking business and this include universal bank, and acceptance house, discount house and financial institution, and in his definition banking business means the business of receiving money from outside sources as deposit in respective of payment and granting of money loan and acceptance of credit or the purchase bill and cheque or the purchase of security for account of other or the incurring of the obligation of the acquire claims in respect of loan prior to their maturity or clearing and such other transaction.

Oleshore O. in his paper presented in banking management in Nigeria at the banking and financial lecturer of department economy university of Ibadan (1984) in a matter in one his speech is of the view that customer must not been made that the bank is doing him a favour. That no amount of service, Bally – Goo advertisement or glumick can substitute for good performance and service, which phase the customer, employees should be fully inform about subject important the bank such as policy, operations, services and objections.

However, it is a historical fact that deposit of establishment of indigenous bank universal in Nigeria is never the less dominated by the expatriated led to indigenizing the whole system.

G.O Nwanko on his book Nigeria Financial System Macmillan banking facilities in Nigeria are provided by expatriate bank led to the establishment of indigenous bank. On the other the satisfaction facility provided by the entire banking system as led to attempt to indigenalize the whole system.
According to Mr. Paul A. Ogwuna then the governor of the Central Bank of Nigeria in a lecture delivered at the National Institute of Banker (NIB) annual seminar said that in other to facilitate the growth the authorities need to stimulate the money market by introduction of routine rediscount facilities without to support medium and long term lending.

According to Dr. Orji H.O managing Director and chief executive bank in an article he feature in the Central Bank of Nigeria Bullion Vol. 13 April / June (1991) an appraisal of the Nigeria financial system said that the process of economic expansion might occur due to improvement in the financial system as potential in adequacy linked with the potential real investment and that as the financial constrain to development become acute in the 1980’s the banking sector traced up challenges by harnessing the available capital and saving in the system for potential investors.

The Nigeria banks lies their counterpart in Japan, Germany and India said by chief E.S.O Olisabu in a lecture delivered on 9th February (1993). Organized lecture, can now play a major role in financial industry directly, not just saving it as in the past. This has implication for growth and development.