THE ROLE OF COMMERCIAL BANK IN FINANCING AGRICULTURAL PROJECT
Financing agricultural project is the gradual nurturing embellishing to a large, matured and organized state of the human aspect of labour in any organization in order to make him be acquainted with his duties and this make him perform effectively in his duties towards playing a role in this subject. Banks have gone a great extent in training his staff through different means of off the job. On the job, sending to seminars and conferences.etc.
Financing agricultural programmes for instance the financing of MBA programmes in banking and finance of the university of Ibadan, have made evaluation of this programmes through scrutinizing the balance sheets of their customers and finding the attributes of financing agricultural in the increased profit and have finally been advising on the subject by explaining to their business and industrial organization customers the needs and benefits of training and motivating their staff.
1.1 STATEMENT OF PROBLEM AND PURPOSE OF THE STUDY
The major concern of this study is to now from the leader (first bank as the commercial bank and the recipient (farmers and agriculturist) how effectively agricultural project are financed in Anambra state as a result of the domineering and indispensable role of commercial banks. Since the establishment of first bank in 1894 it had been carrying out financial assistance to agriculturist.
Purpose of study
v To investigate how commercial bank back – up the agricultural project in Anambra state.
v To state the role of commercial bank in financing agricultural project in Anambra state.
v To identified the areas in which the commercial bank finances agricultural project in Anambra state.
v To identified the objective of commercial banks to agricultural project in Anambra state.
v Finally, to investigate the relationship which existing between commercial banks and agricultural project in Anambra state.
1.2 RATIONALE OF THE STUDY
The rationale behind in introducing this study is to determined how commercial bank are financing agricultural project in Anambra state. They are as following.
v To know how the commercial bank are taking their decision when financing agricultural project in Anambra state
v To identified the process in which the commercial bank can able to finance agricultural project in Anambra state.
v To acknowledgement the step the commercial bank are taking in financing agricultural project in Anambra state.
v To acknowledgment the things that are involved when the commercial bank are financing agricultural project in Anambra state
v To identified the areas in which the commercial bank are to finance agricultural project in Anambra state
1.3 SIGNIFICANCE OF THE STUDY
This study will benefit a lot of people due to the astronomical population growth presently without a correspondent growth in agricultural production to feed for the growth in population, especially in the developing countries, the people who will benefit more from this study are the national and state government, especially Anambra state, commercial banks, the farmers and also the readers.
The government, the federal government stands to gain form this study by understanding the impact of the various monetary polices on the effective running of commercial bank in relation to loans granted to the farmers. The state government especially Anambra. In the same vein stand the extent and effect on commercial bank lending policies in relation to farmers in the state and the various ways they can help in ameliorating the plight of farmers in relation to securing loans and consequent increase in producing in the state.
1.4 DEFINITION OF TERMS
Loans: this is a bulk of money a bank given to its customers or other that met the requirement for such money
Bank rate: this which is also called discount rate is the rate of interest the central bank charges commercial bank and other financial institution for discounting their bills.
Banker drafts: they are issued by commercial banks used in settling debts and are as authentic as physical cash.
Special deposit: this is an instruction from the central bank asking the commercial banks to keep with it special deposit over and above their statutory requirement.
Current account: this is the type of bank account that is commonly used by the businessmen and other groups of individuals and organization that frequently make use of money.
Cheques: a cheques is a written order made upon a bank to pay a specified sum of money to a named person or bearer at a certain date.
Drawer: this is the owner of the account who writes the cheques to his creditor
Drawee: this is the bank where the cheques will be presented and cashed
Payee: this is the person who present the cheques in the bank for payment and whom the cheques is made payable.