ABSTRACT

The research work brings to attention the role of deposit money banks in financing small scale industries in Nigeria and how the performance and effectiveness of small scale enterprises as an instrument of economic growth and development in Nigeria has  long been under scrutiny. The intense scrutiny has been against the backdrop of the low performance and inefficacy that characterized small scale enterprise, particularly in accessing its role with deposit money banks. And to highlight the extent to which the deposit money banks have helped in financing small scale industries in Nigeria and problems hindering such. Primary data was used to test the data collected, questionnaires, were administered to deposit money banks in U. B. A. Bank road owerri in imo state, chi- square and simple percentage method were used to analyze the results gotten. The outcome reveals that deposit money banks have helped in financing small scale industries in Nigeria. findings from the study shows that deposit money banks grant loans to small scale industries in Nigeria. The study concluded that deposit money banks play the mayor role in the financing of small scale industries in Nigeria.The study recommends that small scale industries should improve to a better performance so as to attract the deposit money banks to their financing. 
            

TABLE OF CONTENT
Cover page ……………………………………………………………………………………..i
Certification…………………………………………………………………………………….ii
Dedication……………………………………………………………………………………...iii
Acknowledgement………………………………………………………………………….iv
Abstract ………………………………………………………………………………………...v
Table of content………………………………………………………………….……vi-vii
CHAPTER ONE
1.0  Introduction……………………………………………………………………………1
1.1  Background of The Study………………………………………………….1-4
1.2  Statement of The Problem…………………………………………………4-6
1.3  Objectives of The Study……………………………………………………6
1.4  Statement of Hypothesis…………………………………………………..6-7
1.5  Significant of The Study …………………………………………………..7
1.6  Research Question………………………………………………………….7-8
1.7  Scope of Study……………………………………………………………….…8
1.8 Definition of Terms………………………………………………………..8-10

CHAPTER TWO
2.0  History of United Bank For Africa………………………………….11-12
2.1 Theoretical literature ……………………………………………………12-17
2.2  Empirical Literature …………………………………………………..18-36
2.2.1 The Need For Industrialization………………………………..37-38
2.2.2 The Role of Deposit Money Banks In Industrial Development And Growth In Nigeria. Emphasis On United Bank For Africa (U.B.A)………38-39
CHAPTER THREE
3.0  Research Methodology……………………………………………………..40
3.1  Research Design………………………………………………………………..40
3.2  Area of Study ……………………………………………………………………41
3.3  Population of The Study…………………………………………………41-42
3.4  Sources of Data Collected ………………………………………………42
3.4.1 Primary Source of Data……………………………………………………43
3.4.2 Secondary Source of Data ………………………………………………43
3.5  Research Instruments……………………………………………………..43
3.5.1 Direct Interview ……………………………………………………………43-44
3.5.2 Questionnaires………………………………………………………………….44
3.6  Sample/Sample Techniques…………………………………………44-45
3.7 Method of Data Collection……………………………………….…45-46
3.8  Method of Data Analysis………………………………………………..46

CHAPTER FOUR
4.0  Result Presentation, Analysis And Discussion……………..……47
4.1  Socio-Economic Characteristics of Respondents………..47-48
4.2  Test of Questionnaire…………………………………………………48-54
4.3 Test of Research Hypothesis ………………………………………54-58
Chapter Five
5.0 Summary of Findings, Conclusion And Recommendation..59  
5.1 Summary of Findings………………………………………………………..59      
5.2 Conclusion ………………………………………………………………………..60
5.3 Recommendation………………………………………………………………60-62
References

CHAPTER ONE
1.0  INTRODUCTION
1.1  BACKGROUND OF THE STUDY
The practice of banking and financing in Nigeria is culturally rooted and dated back several centuries ago. In the 1940s, the traditional financial institutions provide access to credit for rural and urban low-income earners. They are mainly of the informal self help Groups (SHGS or Rotating Savings and credit Association (ROSCAS) types. The informal financial institutions generally have limited outreach due primarily to paucity of loanable funds. In order to enhance the flow of financial services to Nigerians, government has in the past initiated a series of publicly financed micro credit programmes and policies targeted at productivity enhancement.
Notable among such programmes were the rural banking programme, sectored allocation of credits, the Agricultural Credit Guarantee Scheme (ACGS) etc other institutional arrangement were the establishment of the Nigerian agricultural and co-operative bank limited (NBCB), the National Directorate of Employment (NDE), the people Bank of Nigeria (PBN), the community banks (CBS) and the family Economic Advancement Prorgramme (FEAP) all aimed at improving the economic growth of the nation year 2005 was remarkable in the history of Nigerian Banking Industry. The consolidation exercise initiated by theCentral Bank of Nigeria (CBN)on jury 2004 came to head on December 31, 2003 with 14 banks unable to meet the N25 billion recapitalization requirement. The apex bank revoked the licensesof the 14 banks mean while, the 25 banks successfully met the N25 billion minimum capital requirements represent 93.5% of the total deposits of the 89 banks that existed in the country reconsolidation. In the process, about N406 billion was raised from the capital market while an inflow of 652 million was generated from outside the economy.
In other to lower industry, cost of funds, the Cash Reserve Ratio (CRR) was reduced by 6% points from 11% to 5% with banks in special central bank of Nigeria (CBN) instrument with a tenure of 91 days at 3% coupon rate. Furthermore, a 1 year with a view to restructuring the deposit profile of the federal government. Similarly, verse inflationary trend and encourage long tenured investment the 182 days non. Discountable bill was introduced.
Deposit money banks are involved in the process of increasing the wealth of the economy, particularly the capital goods needed for raising productivity. In developing countries like Nigeria, income is very low and that as such low level investment can be made, if possible without requiring a long period effort at savings. Financial intermediaries have a vital role to play here, in raising both the savings and investment to the level necessary to achieve to self sustained growth.
In manpower development, banks contribute highly in training staff and development through both local and foreign facilitation. In order to strengthen our work force and take advantage of emerging market opportunities, banks also recruit various professionals with broad industry knowledge and hands on experience.
In financing the economy, the bank has aligned its financial intervention in the economy with a clear understandingof high impart character of government’s privatization and deregulation program. The search made for the most efficient and effective domestic vending portfolio has meant that deposit money banks have led the financing of private investment in industrial development in the economy.
The financial institutions are therefore capable of influencing the major savings factors namely, ability, willingness or saving propensities and opportunities. The need to achieve sustained industrial growth within any economy can be possible amidst strong financial institution and precisely within the existence such that are tailored to work in accordance with government policies and program in a bud to attaining the desired macro-economic objectives of a nation banks as components of financial sector consist of the apex i.e. Central Bank, merchant banks and specialized banks.

1.2  STATEMENT OF THE PROBLEM
Evidently, an important avenue for banks to boost the growth of the industrial sector of the economy is through efficient and effective saving investment and productive activities. For the past three decides the Nigeria economy has not shown any favourable sign growth for example, the real GNP growth rate figures was 2.8% in 1995 with negative figures in year like 1982 with 0.3% etc (As depicted in the CBN periodic bulletin 1986).
From this background we are therefore poised to answer the burning questions like:-

1. In what extent does deposit money banks as a financial intermediate contribute towards funds mobilization for the growth of small scale industries and development of the country.
2. Is there any relationship between deposits money and small scale industrial development and growth in Nigeria.
3. What are the problems of deposits money bank encounter in their performance towards mobilization of fund for small scale industries growth.

1.3 OBJECTIVES OF THE STUDY
The objective of this research work are stated as follows:

1. To determine the role of deposits money banks towards a positive industrial growth and development.
2. To identify and analyze the constraint and short coming facing deposit money banks in Nigeria towards fund mobilization for industrial growth and development.
3. To examine ways in which the deposits money banks in Nigeria can be made to play better roles towards fund mobilization for industrial growth and development.
4. To determine and test the effect of some relevance economic variables and factors in the real gross domestic product (GDP) in Nigeria.

1.4  STATEMENT OF HYPOTHESIS
The following hypothesis are tested on this study:
H0:         Deposits money banks have not played a significant role in the industrial growth and development.
Hi:          deposits money banks have played a significant role in the industrial growth in Nigeria.
1.5  SIGNIFICANT OF THE STUDY
The usefulness of this study is that it will highlight to the nation as a whole on how best to manipulate deposits money banks loans for financing in order to improve the state of small scale industrial product in the country.
It will also give the government a over view of constraint of industrial financing and how best to manage deposit money banks loan in order to yield output.
It will show deposit money banks how to increase industrial financial for growth in the economy.
1.6  RESEARCH QUESTION

1. Does deposit money banks contribute positively toward industrial growth and development?
2. Does deposit money banks experience or faced short comings towards fund mobilization for industrial growth and development.
3. Does deposit money banks play better roles towards fund mobilization for industrial growth and development?
4. Does deposit money banks have effect on economic variable and some factors in real gross domestic product.

1.7 SCOPE OF STUDY
This study is designed to find out the role of deposit money banks towards financing industrial activities in Nigeria emphasis on united bank for Africa (U.B.A). The study will cover the period 1980-2002).
1.8 DEFINITION OF TERMS

1. Banking:- Banking is defined as a business of receiving monies from outside source of any deposit, irrespective of payment of interest, granting of loans and acceptance of credits.
2. Financial Institution:- Financial institutions are establishments that issue financial obligations (such as demand deposits) in order to acquire funds from the public.
3. Investor: Investor is a person who invests money in business, customer of bank who deposit money or brought share from bank.
4. Capital Market: Capital market is a market through which medium to long term securities issued by government and private concern are traded. In other words the capital market provides funds for business and government for long term uses.
5. Nigerian Banking Industry: This countries of the banking institutions in the country which include the deposit money banks merchant banks development banks etc with the central bank as the apex.
6. Union Bank of Nigeria Plc:This is one of the leading  banks in the country both by deposit and assets wish 283 branches touching.
7. Banker: A banker could be said to be one whoworks in an institution licensed to carry on the business of banking.
8. Depositors: These are customers who keep money or value with the bank on contractual terms.
9. Distress: A bank may be classified distress when it is unable to meet the bank examination rating system.
10. BOFID: Banks and other financial institutions decree

Rural Banking: This involves the establishment of banks in rural areas to cultivate banking habit among the rural dwellers.

 

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