CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

Government policies are used to pursue development objective of government that bothers on meeting the welfare of the citizens they could be socially, politically, economically, religious wise, environmentally population and so on. These policies are used to credit control and discount rate. The banks are one of the financial institutes that formulate the policy objectives and achievement of these goals. This research involves the case study of First Bank Nigerian Plc.

First Bank Nigerian Plc was incorporated as a limited liability company on March 31, 1894 with the head office in Liverpool by Sir Alfred Jones a shipping magnate. It started in the office of Elder Dempster and company in Lagos under thee cooperate name of Bank of British West African (BBWA) with a rapid up capital of 12,000 pounds sterling. After absorbing it predecessor the African banking cooperation, which was established earlier in 1892. In the early year of operation the bank has an impressive growth. The changing of the banks name occurs in 1979 abd 1991 to First Bank Nigerian Plc. It commenced business operation on October 1988 and was converted to a public limited liability company in June 1992.

2005 the bank went into a merger arrangement with former Atlantic Bank Plc,   IMB international Bank Plc. The sharing of the new banks are quoted on Nigeria stock exchange consolidated.

1.2       Statement of problems

The under-developed nature of the Nigeria financial market. There is very much presented in Nigeria where by expected revenue fall below expenditure. This occurrence leads to direct injection to aggregate demand and increase pressure price level. The issue of non bank financial institution (NBF) which are ruing in numbers and operations. They adopt deposit but up till now, they are under the central banks of Nigeria (CBN). There is delay in the conduct of monetary policy in Nigeria. There is delay in releasing the reserve government annual budget which causes economic units to suspend their activities.

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