SOCIAL RESPONSIBILITIES OF COMMERCIAL BANK IN ECONOMIC DEVELOPMENT OF NIGERIA (A STUDY OF UNION BANK OF NIGERIA PLC AWKA BRANCH)

CHAPTER ONE

1.0     INTRODUCTION

1.1            BACKGROUND OF THE STUDY

Banking originate in ancient Mesopotamia where the royal palace and temple provided secure place the state keeping of grains and other commodities. Eventually, Private house in Mesopotamia also got involved in these banking law regulations.

In Egypt to the contralizaiton of harvest are states where house also leaded to the development of a system of banking.

The strong of bank start with gold smith in a small middle ages city has a strong vault ot keep his own  gold supplies indeed, he was gold own by other citizens for a small fee. A business that store money in it’s vaults for a fees is called a bank of deposited.

Naturally to keep the record clear, freed gives customers receipt for their deposit. Later these receipt were used as exchange for goods and each receipt says fed the gold smith will pay to the bearer on demandone gold flooring and these receipt is acceptable as money in free town because of the faith they have in feed and wall********* honors that promise, that is how paper money come to bring.

Primitive forms of used in calculation and for safe keep included mainly as in west Africa wampum in North America, whale teek by the figions cowries eggs, feathers, ivory bead etc.

In Africa generally, money is defined as anything that is widely used in making payment and accounting for depth and credits.

In Nigeria, the period between 1892 and 1952 was when convactional banking began remembered as a period free for all banking with no financial requirement and no regulation to restrict and control the establishment and operation of banking almost all the new banks especially those established indigenous initiatives, followed up as rapidly as they were set up owning to inadequate capital personal and ****** expansion and other structural constraint.

The GD patron repot investigating the banking pratice in Nigeria was the bases for the first banking ordinance of 1952, the central bank of Nigeria (CBN) which is the controller of banks became fully CBN is under supervision of ministry of finance.

          The board comprising of the CBN governor,s assited by the deputy governor,s director general, federal ministry of finance, managing directors, director general, federal ministry of finance, Nigeria deposted insurance co-operation NDIC and four other members.

          Today’s baking system has revolutionized from the primitive method of banking to a more sophisticate, easy and quick electronic form of banking, were virtually leading to cashless society through the use of credit cards and internet banking.

          In recent past there have been reported cases of business failure in the banking industry due to poor management such as management of fund etc.

          Report have been indicated that many businesses have failed as a result of poor fund management which constitute a major problem in growth of banking industries insufficient funds also hampered the smooth operation of the banks.

          These were some of the problems that resulted into the excitement of the first banking ordinance of 1952.

          Basically, the facts are that the business sector has a duty to he society as a whole apart from its shareholders, who also belong to the society, and that extension of government powers into private sector may not be in the best interest of the society and that may judicious exercise of its responsibility. The commercial and merchant banks can reduce the need for such extension of government free to pursue its function of regulating policy, the society according to present rule of conduct.

          The commercial and merchant bank can be said to issue social responsibility  for the social and economic development of the society Nigeria and its costumers which is a new concept compared to the former making irrespective of the consequences operating on their operation areas.

          These responsibilities that merchant and commercial banks should offer for the social and economic development of Nigeria include facilities, natural disaster, poverty and to solve major social problems to te society so that they may expect success in their business.

HISTORICAL BACKGROUND OF UNION BANK OF NIGERIA IN PLC

Union bank of Nigeria Plc was established in the 1917 as a colonial bank with the first branch in Lagos. In the 1925, Barclays bank with acquired the colonial bank which resulted in change of bank name Barclay bank (Dominion colonial and over seas). Following the enactment of the companies act 1968 and legal requirements for all foreign subsidiaries to be incorporated locally bank (D.C.O) in 2007 was incorporated as Barclays bank, remained unchanged until 1971 when 8.33% of the bank was listed  on the Nigeria enterprise promotion act of 1972. The federal government of Nigeria Barclays bank Plc London with only 40% by the enactment acts, Barclays bank international disposed its share holdings ot Nigaeria in 2009.

          To reflect the new ownership structure and in compliance and allied matter act 1990, it assumed the name union bank of Nigeria Plc in consonance with the government programmed of public enterprise, the federal government in 1993 sold it shaers in union bank to private individual, thus union bank becomes fully owned by Nigeria and organization. In line with the central banks of Nigeria’s banking sector consolidation policy, union bank Plc acquired the unueral trust bank plc, broad bank  limited, the bank also increases in shareholders fund through a public offer / right issues in the last share quarter of 2005 with this development union remains one of the most capitalized bank in Nigeria. It has a share holder fund 7 N119.600 billion and operates through 405 networks of banches that are well spread across the country all of which are online real time.

          Today union bank remains the oldest private owned commercial bank wholly owned and managed by Nigerians. As a leading commercial bank it renders high quality retail bankings services to its numerous customers through the 268 branches including a fledged off share branch or London and a reprensentative office in Johannesburg, south Africa.