The Role of Financial Institutions in the Development of an Economy (a Case Study of Nigerian Agricultural and Co-operative Bank, Ogui – Enugu)

The Role of Financial Institutions in the Development of an Economy (a Case Study of Nigerian Agricultural and Co-operative Bank, Ogui – Enugu)

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Abstract on The Role of Financial Institutions in the Development of an Economy (a Case Study of Nigerian Agricultural and Co-operative Bank, Ogui – Enugu)

 The banking system and financial institutions is one of the fastest growing and developing sectors of paramount importance in the Nigeria economy.  The role of the various banking ad non-banking financial institutions in the provision of different types of industrial and agricultural finance are fully appraised.

In examining the role of financial institutions in economic developments, the following theoretical concepts usually constitute the focus of attention, namely;

1. The domestic mobilization of financial resources is essential for capital formation and accelerated growth.
2. An efficient allocation of available resources is of importance in the development process.
3. Financial institutions offer an efficient institutional mechanism through which resources can be mobilized and directed from less essential uses to more productive investment.

The role of financial institutions in Nigeria is so crucial in the economic emancipation, as such roles help the economy of developing nation find its real position in the world economy and improves the standard of living of such nation.

The researcher tried to examine the adequacy and relevance of the institutions and the structure of the financial system of meet the needs of the economy for rapid development and also to know whether they play the role for which they were established.

In order to write the project, research was done on some of these banks and financial institutions like central bank of Nigeria, commercial banks, merchant banks and development banks.

Finally, the researcher also carried out thorough investigations to show all the claims of some financial institutions and hence recommendations were made.

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