AN APPRAISAL OF THE EFFECTS OF THE DEVELOPMENT OF NEW CONSUMER CREDIT IN NIGERIAN COMMERCIAL BANKS. [A CASE STUDY OF DIAMOND BANK LTD ENUGU]

                                                      ABSTRACT

Due to the rapid changes in the business of banking and rapid changes in the business environment in which such business are being conducted, the issue of consumer credit service or product cannot be over emphasized.

Banks are established to make profit. Are these profits made at the expense of the customers or is it as a result of the service produced by these banks? Nowadays banks have seen the urgent need for the provision of right type of quality services at any particular point in time and therefore have taken positive steps towards the development of consumer credit service and product that will meet the needs of customers.

In spite of the fact that banks develop this consumer credit services or product in order to cope with cut throat competition existing in the banking scene, banks should know the customers needs should be the number one factor to consider as satisfying their needs is the ultimate objective of the new consumer credit services.

This piece of work aim to find out how customers to react to this new consumer credit service or product and to find out if banks developed this credit service to meet the needs of customers. This research work contains the following in its chapters.

A general discussion of consumer credit product as seen by different people, objective of the study, its scope, limitations and definition of terms.

It also contains the method used in collecting relevant data and the way the questionnaire were distributed and compared and the treatment of data. The data gotten from the research survey were analyzed and interpreted.

Finally, the summary of finding, conclusion on the research and recommendation will also be made so to help achieve a better tomorrow.

                                                            TABLE  OF  CONTENT

COVER PAGE-------------------------------------------------------------------- -------------------  i

TITLE PAGE---------------------------------------------------------------------------------------    ii

CERTIFICATION----------------------------------------------------------------- -----------------   iii

DEDICATION--------------------------------------------------------------------- -----------------   iv

ACKNOWLEDGEMENT--------------------------------------------------------- -----------------   v

ABSTRACT-------------------------------------------------------------------------- ---------------  vi

TABLE OF CONTENT---------------------------------------------------------------------------    vii

CHAPTER  ONE                                                              

1.0    INTRODUCTION-------------------------------------------------------------------------- 1

1.1   BACKGROUND OF THE STUDY----------------------------------------------------------1

1.2   STATEMENT OF THE PROBLEM-------------------------------------------------------- -2

1.3   OBJECTIVE OF THE STUDY------------------------------------------------------------ ---2

1.4   RESEARCH QUESTION-------------------------------------------------------------------  3

1.5   HYPOTHESES-------------------------------------------------------------------------------3

1.6   SCOPE OF THE STUDY--------------------------------------------------------------------4

1.7   SIGNIFICANCE OF THE STUDY----------------------------------------------------------4

1.8  LIMITATIONS OF THE STUDY------------------------------------------------------------5

1.9   DEFINITIONS OF TERMS-----------------------------------------------------------------5

         REFERENCES-------------------------------------------------------------------------------7

 2.0 LITERATURE REVIEW----------------------------------------------------------------------8

 2.1  THEORETICAL REVIEW-------------------------------------------------------------------8

 2.1.1   COMMERCIAL BANKS CONSUMER CREDIT PRODUCT--------------------------8

 2.1.2  DIAMOND BANK AND THEIR NEW CREDIT ----------------------------------------12

2.1.3    FACTORS AFFECTING CONSUMER CREDIT DEVELOPMENT-------------------13

2.1.4    PROBLEM OF CREDIT DEVELOPMENT---------------------------------------------15

2.1.5    BENEFIT OF NEW CONSUMER CREDIT DEVELOMENT--------------------------15

2.2      EMPIRICAL REVIEW--------------------------------------------------------------------16

            REFERENCES-----------------------------------------------------------------------------21

 3.0   RESEARCH METHODOLOGY-----------------------------------------------------------22

 3.1   RESEARCH DESIGN----------------------------------------------------------------------22

 3.2   AREAS OF STUDY------------------------------------------------------------------------22

 3.3   POPULATION OF THE STUDY----------------------------------------------------------22

3.4   SOURCES OF DATA-----------------------------------------------------------------------22

3.5   SAMPLING METHOD---------------------------------------------------------------------22

 3.6  RESEARCH INSTRUMENTATION--------------------------------------------------------23

 3.7   VALIDITY AND RELIABILITY OF RESEARCH INSTRUMENT-------------------------23

 3.8   METHOD OF DATA  ANALYSIS---------------------------------------------------------23

 4.1  PRESENTATION AND ANALYSIS OF RESULTS---------------------------------------30

 4.2   TESTING OF HYPOTHESIS NUMBER ONE--------------------------------------------30

 4.3   TESTING OF HYPOTHESIS NUMBER TWO -----------------------------------------33

 4.4  TESTING OF HYPOTHESIS NUMBER THREE.----------------------------------------37

 5.1   FINDINGS--------------------------------------------------------------------------------40

5.2   CONCLUSION----------------------------------------------------------------------------40

5.3   RECOMMENDATIONS------------------------------------------------------------------41

         BIBLIOGRAPHY--------------------------------------------------------------------------42