ABSTRACT
The term commercial bank is the type of financial institution or intermediary and the bank that lends money, provide transaction and saving, accepts deposit on behalf of their customers. The study is being carried out to investigate impact of commercial banking on manufacturing sector in Nigeria taken Skye Bank of Nigeria Plc, as a case of study. it examines the credit facilities rendered by commercial bank to manufacturing industries, it also highlight the problem hindering commercial bank on manufacturing sector with suggested possible solution. Sample survey design has been used for the research work in order to gain insight into a situation that is not very clear and that has been seriously investigated. Therefore, questionnaire as a research instrument for primary data collection and review of related literature were been used to collect both primary and secondary data respectively. Finding in this work shows that commercial bank lending to manufacturing sector has not been encouraging over the years until 1987, when the CBN started to impose sanction on commercial banks. This study recommend that capital base of commercial bank should be increased which will lead to increase rate of performance placed on manufacturing industries and government should constitute law enforcement agent to monitor the activities of manufacturing industry to ensure that money obtained from commercial bank are been used judiciously. In conclusion, commercial bank is playing a vital role on manufacturing sector in Nigeria and economy as a whole.
CHAPTER ONE: INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The growth of economy and development of banking have often appeared inseparable until l7 century, there had existed on modern banking institution anywhere, and there had on modern developed economy. Before 1892, Nigeria was evidently underdeveloped economically, even in 1975, however, despite the growth in the number of banks Nigeria is still developing it is true that the number of bank should not be the only or even the major aspect of banking development have been taken account, it would still not be correct to imply mono casual relationship between the development of commercial bank and the growth of a modern economy.
So many factors determine the level and the rate of development of an economy .the natural resources endowment, labour supply and capital Are economy blessed with precious minerals, valuable agricultural crops and a suitable land water mix, is in a better position to develop than another economy with out these, other things being equal. In the same manner a country that does not have adequate supply of requisite manpower is at advantages. this is why most countries put a premium on manpower development, the justification for this phases has been succinctly put by Harbinsan, in-deed if a country is unable to develop its human resources, it cant build anything also, where there is modern political system, a sense of national unity or a prosperous modern economy we need not to add anything also.
Capital is another critical factor required in the process of development .the term of capital however requires some elucidation. At times, the term capital is used to refer to man made physical facilities that aid further production of good and services, machineries and equipment are such facilities, otherwise called real capital they are produced to serve he needs of further production and not serve the needs of immediate consumption such good imply the existence of some surplus over and above the requirements for consumption purpose.
Financial capital commutes also an ideal of surplus the saving that that result from society income that have not been spent on procuring good for consumption go make up the financial capital . Financial capital is required to procure the real capital it is the concern for the provision of financial capital market the development of a capital market a desideration in an economy commercial banks happen to be a subset of these institution that makes up the capital market
1.2 STATEMENT OF THE PROBLEM
The problems in line with the impact of commercial bank on manufacturing sector are as follows point
1 The need to increase supply capital which was based on the level of guarantee.
2 The bulk of the product of subsistence level and therefore usually generate small surplus out of which little saving for investment could be made
3 The inability of small and medium scale industries in obtaining loan as a result of requirement
4 The scale of expansion and the adoption of innovation to increase capital requirement.
1.3 PURPOSE OF THE STUDY
The overall objective is to know the role of commercial bank in manufacturing sector in Nigeria. However, the specific purposes are as follows
- To know the effects of modern banking credit facilities on manufacturing industries.
- To assess the roles of government fiscal policy in manufacturing bank over the period 1980-1995.
- To highlight the problems hindering commercial bank of manufacturing and suggest possible solution.
- Commercial bank seeks to develop an empirical model of regulators failure decision process of manufacturing sector
1.4 STATEMENT OF RESEARCH HYPOTHESIS
The research question will identify the area where the phenomenon to be studied.
1. Does commercial bank has any role to play on manufacturing industries?
2. Is manufacturing sector has ability to raise loam from bank?
Hypothesis 1
HO: There is no significant relationship between commercial banking and manufacturing sector.
HI: There is significant relationship between commercial banking and manufacturing sector.
Hypothesis II
.