1.1 BACKGROUND OF STUDY
The financial institution (banking) in Nigeria is made up of the central bank, commercial bank, merchant bank and development bank. It was later joint by community bank and people bank created by decree of the federal military government banking
However there focus no general accepted definition bank until 1969 when the act safeguarding the bank defined it as.
The act of receiving monies from outside sources as deposited irrespective of payment of interest and guarding of loans and acceptance of credit or the purchase and sales of securities for account of others. The incurring in respect of loans prior to their maturity a the assumption of guarantees and other warrant for others or the effective of transaction as the minister may, on the recommendation of the central bank, by order published in the federal gazette designate as banking business.
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