THE IMPACT OF NEW MONEY MARKET PRODUCTS ON PROFIT PERFORMANCE OF COMMERCIAL BANK IN NIGERIA

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THE IMPACT OF NEW MONEY MARKET PRODUCTS ON PROFIT PERFORMANCE OF COMMERCIAL BANK IN NIGERIA

TABLE OF CONTENTS

 

          Title Page                                                           I

          Approval Page

          Dedication

          Acknowledgement

          Proposal

          Table of contents

           CHAPTER ONE

          INTRODUCATION

1.1       Statement of the problem/Objective of Study

1.2       Rational of Study

1.3       Significant of Study

1.4       Definition Terms

CHAPTER TWO
REVIEW OF RELATEDLITERATURE

2.0       Introduction

2.1    The Concept of Quality in products as a major

factor determining the a particular product in making

an impact on the profit performance of a bank.

2.2    Product planning, development and control in Bank

          as a means of achieving an impact on their profit performance

2.3    The concept of price and its  effects on demand for product:

          The influence on profit performance of banks.

2.4    The relationship between price and quality in product market

          in bank and it’s effect on profit performance of banks under

          a competitive condition.

2.5       Gaps in product quality

CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY

3.1       Source of  Data

3.2       Location of Data

3.3       Method of Data Analysis

CHAPTER FOUR

4.1       Summary of findings

 

CHAPTER FIVE

5.1       Conclusions

5.2       Recommendations

Bibliography

 

 

 

 

 

 

 

CHAPTER ONE
INTRODUCTION

1.1    STATEMENT OF PROBLEM / OBJECTIVE OF STUDY

                   The commercial banks provides their numerous customer

across the county with the full range of commercial money market banking products (service) but not related to currents savings and deposit accounts. Loans and overdrafts provision of international money market banking services, export credits and financial  advisory services, farmer loan scheme, time deposit current account, statement savings scheme, house saving an loan scheme, first cash, UBA card, current account management services, money gram or international money transfer system, scholarship schemes.

          All this products were aimed at generating profit to the banks concerned but due to change in market demand for these products and infavourable economic environment, there is a decline in sales of these product and subsequent decline in their profit performance (ANIBUEZE 1998) (BANKING PRATICE)

          As a result the banks introduced new money market products such as Network, money gram, Western union money Transfer, save for school scheme, JAMB form sales, cash evacuation scheme, online real time scheme banking services, which were all aimed at improving the profit performance of these banks (NWANKWO 1990: Marketing Bank Products and Services). Therefore, the problem here is how profitable would these products be so as to make any impact on the profit performance to these banks.

          The objective of embarking on this research finding is to determine whether the impact on the profit performance of these banks is as result of the new products introduced. 

1.2    RATIONAL FOR STUDY

The banking sector of Nigeria economy is facing many changes brought about by the contain policy changes  brought about by the constant policy changes by government, operation income depletion and most recently the SAP of 1986 which aims at deregulating the financial  system (OKAFOR 1988) (BANKING SYSTEM IN NIG.)

These changes have given rise to a number of difficulties that the banks are graphing with, most especially the commercial bank. These difficulties include low profit performance, which have affected their operation activities adversely, leaving to the distress problem facing most of these banks today for which about 26 of them have unfortunately been liquidated as announced in the last annual budget of the Federal Military Government.

This low profit performance, necessitated the introduction of new products which is primarily aimed at improving the profit positions of these banks (Nwankwo 1992).

Therefore, the rational for this study is to determine the possibility of these products introduces salvaging the banks from their low profit situation as a means of solving the banking distress problem and eventual liquidation which have a negative impact in the economy in general.

1.3    SIGNIFICANCE OF STUDY        

It is believed that this project work will serve the need for many interest groups operating in the economy.

The research work will enhance the efficiency of banks management of new products towards profit target. Other banks which has not discovered the impact of new money market products on their profit performance will find the need to introducer new products in their range of products (services) scale (Brown 1997).

The research work will go a long way to appraising the governments introduction of structural adjustment programme.

1.4    DEFINITION OF TRAMS

PRODUCT/SERVICE: Used interchangeable, product / services as used here is an intangible commodity or an act performed by a bank in order to attract customers or deposit place (NWANKWO 1992).

PROFIT: This is a return on investment after expenses have been deducted to determine net income.


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