CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Banks generally have credit of being an important resource of capital for development. This recognition accorded banks arises largely from the role most banking institutions in mobilizing feasible and viable ventures. As a result of the provision of loans and advances which gives strength and vitality to the business community, banks occupy a very important position in the economy, the size, type and level of such profitable outlets along with other complementary factors contributing to the improvement in the economic well being of the country where these banks are situated. As a result of the above, banking institutions have been seen as agents of economic growth and development.
It is vital to point out that deposits by customers serve as a loan able funds for banks. These loan able funds can be available if customers make considerable deposits to make loans and advances available to borrowers so as to generate interest. These return that comes in the form of interest gives banks the chance to run their day to day administrative costs, remain in business and
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