SAVINGS AND SAVING BEHAVIOUR AMONG BANKS CUSTOMERS

CHAPTER ONE
1.0    INTRODUCTION
1.1    BACKGROUND OF THE STUDY
    Saving can be defined as that part of disposable income, which is not spent on consumption. It could also mean either reframing from spending or as not spending income on consumption. It could be public or private, the former being related to budget surpluses. Thus savings is residually derived from the excess of income over consumption expenditure, savings is thus not opposite of spending but merely the alternative to the spending of income on consumption. Therefore, if consumption is added to savings it will account for the whole of the individual’s disposable income. In the case of national expenditures and capital formation plus savings, in the case of national income. This may be restated more compactly with aid of the following conventional symbols.
GDP = C + G + I + (X-M)
G N E = C+ g + S
GDP = GNI

Hence,
I + (X-M)=S, where
G N I     = Gross national income
G N E = Gross national expenditure
C     = Consumption expenditure
G    = Government expenditure
S    = Aggregate savings
X    = Exports
M    = Imports
I     = National income  
An individual, whose income accrues as a wages or salary or as dividends on interest, may save part of it, but will hardly be likely to put the saving part of it into the form of industrial machinery or stocks. Instead he will accumulate cash or lend his savings to someone else by buying bonds or may acquire interest in some company by buying shares.

1.2    STATEMENT OF PROBLEM
    Low level of capital formation in Nigeria has been said to be responsible for the low growth rate in the economy, but inspite of this awareness, the rate of saving has not grown rapidly enough. This also is caused by low level of income earners. However, it is true that one of the reasons for low savings rate is the persistent increase in the price level which has increased transaction demand for money and hence reducing the level of savings.

1.3    OBJECTIVES OF STUDY
    The researcher is aimed at examining the savings response of customer’s attitude towards savings. Bank customer’s response to savings with particular reference to savings with commercial bank (United Bank for Africa) Warri.
    The study will take a look into the saving behaviour and control with a view of trying to encourage people to save, that is improving the saving administration. The study is also intended to achieve the following:
i.    To know why people engage in savings
ii.    The level of saving in the country
iii.    The importance of savings
iv.    The limitation of savings
v.    Other requirements needed by commercial banks

1.4    SIGNIFICANCE OF THE STUDY
    This research work will be useful to both bankers and potential banks. And to academicians, researchers, family’s private sector and the public in general who may be interest in the same or related topic.
    It will also give an insight into potential saving behaviour when studied efficiently could bring greater efficiency of the services being rendered to customers and bankers profitability.

1.5    RESEARCH QUESTIONS
    In the coursed of carrying out the research work, certain questions are needed to be asked. The research questions are as follows:
i.    How can we improve the level of savings in this country
ii.    Why do people engage in savings?  
iii.    What can be done to increase savings in this country?
iv.    What is the importance of saving s to family’s, individual, private sector, government and the public in general?    
v.    What are the requirements needed by the commercial banks?

THE HISTORY OF UNITED BANK FOR AFRICA
    Today’s United Bank for Africa (U.B.A) is the product of the merger of Nigeria third (3rd) and fifth (5th) largest banks, namely the old UBA and the erstwhile Standard Trust Bank plc (STB) respectively, and a subsequent acquisition of the erstwhile Continental Trust Bank (C.T.B). The Union emerged as the first corporate combination in the history of Nigeria Banking. Our history dates back to the founding of the old UBA in 1946, and the erstwhile S.T.B. and C.T.B.
    The United Bank for Africa Limited was Incorporated to take over the assets and liabilities of the British and French Bank Limited (BFBL), and officially opened for business on October 3rd 1961, the BFBL commenced operations in Nigeria in May 1949 at 117, broad street, Lagos and opened for business in December 1949.
    January 19, 2005, UBA and STB formally announced their intention to merge at a press conference in Lagos jointly addressed by UBA’s chairman, Kayode Sofola, and MD/CEO of STB, Tony Elumelu. January 26, 2005 the proposed merger between UBA and STB received the pre-major consent of Nigeria monetary regulatory authority, the Central Bank of Nigeria (CBN), conveyed via a letter signed by the CBN Director of Banking supervision, on January 11, 2005 UBA’s offer of 2 billion ordinary shares of #1.00 each at #.00 per share opens for public subscription and offer closed in February 2005 and was fully subscribed among the reason UBA went to the market is to raise capital needed to undertake strategic acquisitions. August 1, 2005, the merger entity operating under the name United Bank for Africa Plc, came on stream as the first successful merger to be prosecuted under the CBN banking consolidation/reform programme. August 16, 2005, share of the consolidate UBA were listed on the NSE. August 22, 2005, UBA commenced the issue of share certificate to shareholders.
    There after, a new board of directors and management team were appointed at inception of merger, U B A had a capital base of 822 billion naira, in the balance sheet, and their savings deposit has increase to 484 billion.