SAVINGS MOBILIZATION FOR ECONOMIC DEVELOPMENT IN NIGERIA BANKING INDUSTRY (1990 – 2004)
(A CASE STUDY OF UNION BANK OF NIGERIA PLC)
ABSTRACT
The research was based on the topic “mobilizing Domestics savings for economic growth and development in the banking industry. (A case study of Union Bank of Nig PLC 1999 – 2000. In carrying out this research, I examined thoroughly. The various factors, which militates severely against the effective and efficient mobilization of domestic savings these factors were identified to range from the level of income earned of the saver. The interest rate that the bank pays on depots of customers, to the effect of bank distress syndrome in the banking industry.  Efforts were geared towards recommending various measures the bank can use to improve greater mobilization of domestic resources in our bank. The various ways through which an increase in domestic savings mobilization can also effect on increase in economic growth and development were also identified. These include granting of loans and overdraft of to deficit customer, assisting in the provision of amenities to the host community generating employment and affirming of scholarship and promotional programmes. The research was accomplished through the use of questionnaires and secondary data. The testing and analysis of relevant data obtained were done through the use of chi – square statistical test techniques.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION                                                            
1.1        Background of  study                                   
1.2        Statement of Problem                                  
1.3        Purpose / Objective of Study                         
1.4        Research Questions                                             
1.5        Significance of the Study                              
1.6        Scope , Limitations and Delimitation               
1.7        Definitions of Terms                                                                                                                             
CHAPTER TWO
Review of related literature                                           
2.1        Domestic Financial Resource Mobilization
Efforts of the Nigeria Financial System                    
2.2    Principal Sources of Savings                                  
2.3    Constraints to Effective Mobilization of
Savings for Economic Growth and Development       
2.4        Effect of Bank Distress in Mobilization of Savings.     
2.5        Effects Of Income Earned To Savings Mobilization
2.6        Effect Of Interest Rate In Mobilization
Of Domestic Savings                                            
2.7        Strategies for Improving Mobilization Or
Savings in Union Bank of Nigeria Plc                       
CHAPTER THREE
Research Design and Methodology                         
3.1    Research design                                          
3.2    Area of Study                                                     
3.3    Population                                                  
3.4    Sample and Sampling Techniques                  
3.5    Instruments of data collection                       
3.6    Methods of Data Analysis                              
CHAPTER FOUR
Data Presentation and analysis                              
4.1    Data Presentation                                                
CHAPTER FIVE
Findings Recommendations and conclusion              
5.1    Summary of Findings                                           
5.2    Conclusion                                                  
5.3    Recommendation                                        
Bibliography                                                               
Appendix                                                                    
CHAPTER ONE
INTRODUCTION
1.1    BACKGROUND OF THE STUDY
          It has been acknowledged that the banking play a catalytic role in t he process of economic growth and development.  This acknowledgement is reinforced by contemporary conceptualism to the effect that banks are a veritable vehicle for mobilizing resources from surplus units and tempting same to deficit unit. Banks constitute perhaps the most important segment of the financial market and played  a dominate role in not mobilizing savings, but also allocating them for investment purposes.
        In Nigeria, domestic savings rate is relatively low compared to most other developing countries with the same for capital income level. In the past, investment rates were high and hence there was no problem for raising funds.
        In this present economic dispensation,  the drive for savings deposit has been stepped up by banks and non- bank financial institutions. It is However not sufficient because the range and type of financial assets available are equally important. There is a wide range of saving instruments offered banks and non – bank financial institutions in Nigeria today.
        Most of the voluntary and non – contractual financial savings consist of savings and time deposit.
        Another area some banks are foreseeing to mobilize funds today is the montage saving: because large number of Nigerians need accommodation of their own but fund it difficult with their menage income. Interest payment a demand deposits accounts has also some positive impact on the propensity to save. Bank have also been allowed by the government to open domaliary  account for Nigerian exporters in which proceed of experts can be paid or saved until when they are needed.  Transaction costs related to operating a new accounts and making deposits and withdrawals are now be coming relatively easier particularly for small savers. There is also the pension scheme which seeks to induce depositors to invest small sums of money over a specified period of time in the hope of receiving a stream of benefits upon reacting the age of retirement.
        The crisis of confidence in our banks is a great set back for the banking system.  In the past the majority of those who patronized the banks did so in order to find safer place for their money. But because of the lack of confidence in banks today  sizeable amount of Nigerians keep their currency or cash at home.
        This winders the financial intermediaries function of intermediation. Most of our industries depend on commercial bank assistance in form of overdraft short term and long loans for effective operation. According to Adewume W. (1996) mobilizing domestic resources for economic development.
1.2       STATEMENT OF PROBLEM
Income is the greatest constraint to savings mobilization. The low level of income among the people in Nigeria constituting a limiting factor to savings mobilization. The inadequate banking facilities in the economy in general and the rural areas in particular also constitute an obstacle to wide savings mobilization.
        Another factor that may affect savings mobilization is the absence of affective a realistic interest rate policy that rewards savers with adequate return on their savings.  In as mush as the rate of interested adjusted for inflation runs negative, savings are likely to remain low
1.3       OBJECTIVES OF ITS STUDY
The aim of the study is to examine available ways of achieving greater mobilization of savings and its efficient and effective channeling for economic growth the research aims at .
1.           Recommending measures for improving greater mobilization of domestic resources in our bank.
2.           Identifying the means throughout which the mobilized funds can effectively be  channeled to the growth and development of economy.
3.           Identifying the effect of interest rate mobilization of domestic savings.                                                
4.           Identifying the effect of bank distress in deposit acquisition.
5.           Determining the effects of income earned to
savings mobilization.
1.4       RESEARCH QUESTION
(1)        Has there been an improvement measure towards achieving greater dogmatic resources in our bank?
(2)       Does the mobilization of domestic savings contribute in the economic growth of the economy?      
(3)       Does the interest rate charges on the mobilization of domestic savings positive?  
(4)       Does the bank distress syndrome have any significant effect to the deposit acquisition?
(5)       Does the propensity to save income earned have effect on the mobilized savings of the bank?
1.5       SIGNIFICANCE OF THE STUDY  
This study intends to elicit body of knowledge and understanding of the problem of mobilizing domestic savings by banks. It is expected. That of the recommendations of this research are implemented it will help to change the banking habits of people. It will also help the managers and staff of banking industry in Nigeria to improve on their fund mobilization strategy.    
        Researchers / students, lectures and the generated public will also fund the findings and recommendations of their research of value various interest areas, especially those who may wish to carry out further study on the topic in any other relate filed.   
1.6       DEFINITION OF TERMS
Savings:    This is that part of income that is not consumed
immediately but deferred for investment or future consumption.
Domestic Savings:  This consist savings from the citizens
of the country and not from foreigners.
CBN:          Central Bank of Nigeria the apex financial
institution in the country.
Nigerian Banking Industry: These countries of the
banking institutions in the country which include the commercial banks, Merchant banks, development banks etc. with the control Apex Bank CBN.  
Union Bank of Nigeria PLC: This is of the leading
banks in the country both by deposit and assets wish 283 branches.
Banker:  A banker could be send to be one who works in
on institution licensed to carry on the business of banking.
Distress: A bank may  be classified distress when it is
unable  to meet the bank examination rating system.
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 areas.