CHAPTER ONE
1.1    INTRODUCTION
A commercial bank be defined as a dealer in money and credit, holding it and receiving from the public, deposits respectable on demand by cheque or their withdrawal instrument.
The idea of a banking system was introduced Nigeria in 1892 with the establishment of Africa banking co- operation. Another one was introduced in 1894 which was named British West African Bank.
The British West Africa Bank was later changed to chase merchant bank to become standard bank of Nigeria. In 1899, Bank of 1917, it was taken to Nigeria and came into existence but later, it was taken over by the bank of British West Africa in 1912. In 1917 it was the establishment of Barclays Bank.
The first indigenous bank and that came into existence in 1929, with the name industrial and commercial Bank. Also, 1934 witnessed the establishment of Nigeria merchant Bank.
Although, it was later closed down due to lack of funds, Bad management coupled with large scale corruption.
Furthermore, the national bank of Nigeria was established on a sound footing but, due to greater post- war activities, the bank was close down. In addition, between 1945 and 1947, four indigenous banks were Africa continental bank (ACB) and Agbonmogbe Bank which was now called Wema Bank PLC.
It was a booming era between 1951 and 1952 because eight banks were established. But in 1951 seven banks closed down only Mercantile Bank survive. It was not that the way surviving bank out of the seven that close down in 1954 had is license withdraw by the state government funds.
All banks in Nigeria were either owned by the state government or the federal government. But this trend did not continue to the policy of revitalization and commercialization embarked upon during the Banbangida administration in 1989.
Commercial bank play very important role in the allocation of fund to individuals and business organization in the society.
One of the principal function of commercial bank is the creation of credit facilities which is the process of distributing and disbursing of fund to potential user at favorable terms and conditions and making sure that fund are effectively utilize to ensure the anticipation benefit to borrowers and lending bank.
Credit facilities are being enjoyed by the account holder i.e individual and business organization respectively. It can be listed that traditional function of bank is financial intermediate i.e their real role is concerned with the monetary aspect of the economy which involve the mobilization of fund from savers scattered in the society and their transfer as credit to investors.
There were many average business entrepreneurs who could not or were unable to raise enough funds from their trade for expansion purpose or from other sources like through friends and others.
Their last result therefore is to source for fund.
1.1    STATEMENT OF RESEARCH
The focus of this study by the researcher is to identify the problems and prospects of credit creation by Nigeria Commercial Banks. In course of the study, effort has been made to find solution to the following research problems.
•    What is the historic cal background of Credit creation by Nigeria Commercial Banks?
•    What are the reasons for credit creation in Nigeria?
•    What are the impacts of commercial banks on credit creation?
•    What is the effect of credit creation on Nigeria economy?
•    What is the impact of prospect on Nigeria Commercial Banks?
•    What are the steps involved in the successful commercial Bank?
•    What are the likely problems facing the development of credit creation by Nigeria commercial banks?