ABSTRACT

This research work focused on the role of commercial banks in financing

small scale industries in Nigeria, case study of Oceanic Bank plc over the

period of (1996-2005).Commercial banks are those banks that perform all

kinds of banking functions such as accepting deposits, advancing loans,

credit creation and agency functions. They usually advance short —term

loans to customers. The main objective of this study is to determine whether

there is a relationship between commercial bank loans, total employment

and lending rates of small scale scale industries in Nigeria as well as to

proffer possible solution to the firm.

Chapter one is made up of the background of the study, statement of

problems, objective of the study, research questions, research hypothesis

amongst others. Chapter three discusses the steps taken by the researcher in

which they were carried out highlighting the basic research design, sources

of data ,specification of model, technique of data analysis.

In chapter four, simple regression analysis was used as a tool. The

hypothesis were tested using correlation coefficient, coefficient of

determination, standard error test and T-test. In chapter five, it consists of

summary of findings recommendation and conclusion. Based on the

findings, the first hypothesis tested revealed that there is a strong negative

relationship exist between commercial bank loans and total employment in

industries and business in which the null hypothesis was accepted. hi the

second hypothesis ,it was revealed that there is a strong positive relationship

exist between the commercial bank loans to small scale industries and

lending rates of deposit money banks. The researcher hereby recommends

that banks should be advised to reverse their based notion about small

business in terms of loans grants and advances .they should also ensure that

adequate credit facilities are extended to small scale industries.