Current Definition of Central Bank

Current Definition of Central Bank

The Central Bank of Nigeria development finance initiatives involve the formulation and implementation of various policies, innovation of appropriate products and creation of enabling environment for financial institutions to deliver services in an effective, efficient and sustainable manner. The initiatives are mainly targeted at agricultural sector, rural development and micro, small and medium enterprises.

Functions of Central Bank

1. Central bank controls credit and money supply through its monetary policy which consists of two parts—currency and credit. Central bank has monopoly of issuing notes (except one-rupee notes, one-rupee coins and the small coins issued by the government) and thereby can control the volume of currency.
2. It is the custodian of their cash reserves. Banks of the country are required to keep a certain percentage of their deposits with the central bank; and in this way the central bank is the ultimate holder of the cash reserves of commercial banks.
3. Central bank is lender of last resort. Whenever banks are short of funds, they can take loans from the central bank and get their trade bills discounted. The central bank is a source of great strength to the banking system.
4. It acts as a bank of central clearance, settlements and transfers. Its moral persuasion is usually very effective so far as commercial banks are concerned.

Definition of Money Market

The money market is that part of a financial market which deals in the borrowing and lending of short term loans generally for a period of less than or equal to 365 days. It is a mechanism to clear short term monetary transactions in an economy. Money market is a market of short term investments.

Functions of Money Market

1. Money market provides non-inflationary sources of finance to government. It is possible by issuing treasury bills in order to raise short loans. However this does not leads to increases in the prices
2. It provides an easy mechanism to transfer of short term funds required for a short period between two parties One in need of funds and the second having surplus funds. They are called borrowers and holders of funds or cash assets (cash assets are money market instruments).
3. For the lenders it provides a good opportunity of lending their surplus funds on an agreed rate of interest with good returns in a short period.
4. For the Borrowers it is an easy way to get cash money relatively on less expensive rates to meet their short term liabilities.
5. Money market is subject to volatile rate of interest depending on supply and demand of money.

Definition of Nigerian Deposit Insurance Corporation

Various reforms had been instituted in the Nigerian banking industry to ensure efficiency and stability in the system. One of such reforms was the establishment of the Nigeria Deposit Insurance Corporation (NDIC), to manage and operate Deposit Insurance Scheme (DIS) in 1989.

Functions of (NDIC)

1. Pursuing any other measures necessary to achieve the functions of the Corporation provided such measures and actions are not repugnant to the objects of the Corporation.
2. Research on issues relating to deposit insurance, banking and the economy; and
3. Provide financial information and analysis of insured banks to the public to promote public understanding of banking policies

Current Definition of Central Bank

Definition of Debt Management Office

The main debt management objective is to minimize the financial cost of the public debt while maintaining the market and operational risks at an acceptable level, taking into account the general objectives of the fiscal and monetary policies.

Functions of Debt Management Office

(a) Advise the Federal Government on the re-structuring and re-financing of all debt obligations;

(b) Advise the Minister on the terms and conditions on which monies, whether in the currency of Nigeria or in any other currency, are to be borrowed;

(c) Submit to the Federal government, for consideration in the annual budget, a forecast of borrowing capacity in local and foreign currencies;

(d) Prepare a schedule of any other Federal Government obligations such as trade debts and other contingent liabilities, both explicit and implicit, and provide advice on policies and procedures for their management;

(e) Establish and maintain relationships with international and local financial institutions, creditors and institutional investors in Government debts;

(f) Collect, collate, disseminate information, data and forecasts on debt management with the approval of the Board

Current Definition of Central Bank

Definition National Insurance Commission

The National Insurance Commissionwas established in 1997 by the National Insurance Commission Act 1997 with responsibility for ensuring the effective administration, supervision, regulation and control of insurance business in Nigeria and protection of insurance policyholders, beneficiaries and third parties to insurance contracts. National Insurance Commission: Is a body that ensuring efficient administration, supervision, regulation and control of insurance business in Nigeria.

Functions National Insurance Commission

1. Insurers should therefore enhance after. Sale service, such as prompt payment / settlement of claims as well as effective intermediation model.
2. They also develop environmentally friendly products, based on market research and ensure an efficacious marketing that will speak to the customers in the grass root.
3. The contribution of insurance to economic growth is huge and unlimited.

Federal Mortgage Bank

Nigeria Federal Mortgage Bank of Nigeria mass housing Functions of the Federal Mortgage Bank of Nigeria The Federal Mortgage Bank provides long-term credit services to mortgage banks in Nigeria and other mortgage institutions at rates that will allow the mortgage banks and institution grant loans to individuals who want to acquire their own houses.

Current Definition of Central Bank

Functions

1. To provide loans for the purpose of erecting, purchasing or renovating houses
2. You can get a mortgage finance facility for buying a property, or for building your dream home from scratch, or even simply remodeling or renovating an existing home to suit your needs.
3. Catalyze house financing among low and medium income bracket of the population, including the non-salaried and usually informal sector

Definition of Financial Service Co-coordinating

Financial Services Co-coordinating Committee (FSCC) The Committee was established in 1998 and charged with the primary responsibility to promote safe, sound and efficient financial sector in the country. It’s membership is drawn from the key regulatory and supervisory institutions in the nation’s financial system, namely, Central bank of Nigeria (CBN), Security and Exchange Commission (SEC), National Insurance Commission (NAICOM), Corporate Affairs Commission (CAC) and the Federal Ministry of Finance. This committee chaired by the Ministry of Finance co-ordinates the activities of all regulatory institutions in the financial system.

Current Definition of Central Bank

Functions of Financial Service Co-coordinating

1. Review economic and financial conditions in the economy
2. Determine appropriate stance of policy in the short to medium term
3. Review regularly, the CBN monetary policy framework and adopt changes when necessary.
4. Also communicate monetary/financial policy decisions effectively to the public and ensure the credibility of the model of transmission mechanism of monetary policy

Definition Securities and Exchange Commission

The Securities and Exchange Commission (SEC) is the apex regulatory body for Nigeria’s capital market. It, however, operates under the supervision of the Federal Ministry of Finance. The Securities and Exchange Commission, Nigeria, like other exchange commission’s elsewhere, regulates the operation of capital market transactions, ensuring that the relevant rules are complied with

Functions Securities and Exchange Commission

1. SEC oversees the involvement and operations of organizations and individual investors. The Commission monitors securities companies, self-regulatory organizations, and the stock markets.
2. The Commission aims to develop better accounting and regulatory standards.
3. SEC has reported improvements in several important areas, including better risk-based evaluations of financial companies.

Definition of National Board for Community Banks

Development and continuous development in a goal which every nation espies to achieve and when it is achieved every one shares in the glory. Most nation development tends to concentrate in the urban arrears but a nation is related highly when its development extends to the rural areas. In Nigeria, life in rural areas is synonymous people are predominantly peasant farmers who produced the highest percentage of nations food, fire and yet there is no significant development of the rural areas. There are no good roads, electricity, and good water supply among things. The banking industries help in no small measure in brining development in any country therefore in a bid to an extend this development to the rural areas.

Functions of National Board for Community Banks

1. The improve efficiency in the use of scarce land and water resources to enhance more efficiency use of capital resources.
2. Equitable distribution of income all of which gear up to raise the standard of living of the rural population.
3. to facilitate the economics development of rural areas, which is the need for this study
4. Provide soft loans through equity participation. NIDB caters for the medium and large-scale industries enterprises and some small-scale units with total investment and working capital up to N570, 000 under its scope of financing

Nigeria Agricultural Insurance Corporation

Agricultural insurance therefore offers production to farmers (Insured) from the effect of these natural disaster and ensure payment of appropriate compensation sufficient to keep the formers in the business after suffering a loss. It minimizes and eliminates the need for emergency assistance provided by government during the period of agricultural disaster

Functions Nigeria Agricultural Insurance Corporation

1. Promote agricultural production since it would enhance greater confidence in adopting new and improved farming practices and at the same time bring about greater investments in the agricultural sector of the Nigerian economy, thereby increasing the total agricultural production.
2. Provide financial support to farmers in the event of losses arising from natural disasters; Increase the flow of agricultural credit from lending institutions to the farmers.
3. Minimize or eliminate the need for emergency assistance provided by Government during period of agricultural disasters.

Current Definition of Central Bank

 The People Bank of Nigeria

According to a 6 January 1992 Agence France Presse (AFP) report, the People’s Bank of Nigeria (PBN) was “established in October 1989 by the government of President Ibrahim Babangida to cater for poor professional people and traders who, because of the stringent requirements of orthodox commercial banks, might not have access to loans.” In 1991, the PBN Chairman and Managing Director were Mr. Tai Solarin and Mrs. Maria Sokenu, respectively (Europa 1991 1991, 2021).

Functions of the People Bank of Nigeria

1. The Bank attained its legal status by the promulgation of Decree.
2. The Bank is to meet the credit needs of small borrowers who cannot satisfy the stringent collateral requirements normally demanded by conventional commercial banks.
3. The bank is expected to facilitate access to credit for economic operators at the grass root and thereby increase their self -reliance.
4. It granted loans in the range of N50 to N5,000.