THE ROLE OF FINANCIAL INSTITUTIONS IN THE DEVELOPMENT OF AN ECONOMY (A CASE STUDY OF NIGERIAN AGRICULTURAL AND CO-OPERATIVE BANK, OGUI – ENUGU)
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THE ROLE OF FINANCIAL
INSTITUTIONS IN THE DEVELOPMENT OF AN ECONOMY (A CASE STUDY OF NIGERIAN
AGRICULTURAL AND CO-OPERATIVE BANK, OGUI – ENUGU)
ABSTRACT
The banking system and financial institutions is one of the
fastest growing and developing sectors of paramount importance in the Nigeria
economy. The role of the various banking
ad non-banking financial institutions in the provision of different types of
industrial and agricultural finance are fully appraised.
In examining
the role of financial institutions in economic developments, the following
theoretical concepts usually constitute the focus of attention, namely;
The domestic mobilization
of financial resources is essential for capital formation and accelerated
growth.
An efficient
allocation of available resources is of importance in the development process.
Financial
institutions offer an efficient institutional mechanism through which resources
can be mobilized and directed from less essential uses to more productive
investment.
The role of financial institutions in Nigeria is so crucial
in the economic emancipation, as such roles help the economy of developing
nation find its real position in the world economy and improves the standard of
living of such nation.
The researcher tried to examine the adequacy and relevance of
the institutions and the structure of the financial system of meet the needs of
the economy for rapid development and also to know whether they play the role
for which they were established.
In order to write the project, research was done on some of
these banks and financial institutions like central bank of Nigeria, commercial
banks, merchant banks and development banks.
Finally, the researcher also carried out thorough
investigations to show all the claims of some financial institutions and hence
recommendations were made.
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