CREDIT POLICY OF FINANCIAL INSTITUTION AND ITS RELEVANCE TO ECONOMIC DEVELOPMENT (A CASE STUDY OF FIRST BANK OF NIGERIA, PLC)

The credit policy are those monetary policy Instrument use by the monetary authorities particularly the central bank to influence the supply, allocation and cost of credit with view to attaining specific macro-economic objectives in the country. It is deliberate measures aimed at controlling the qualitative supply of money. Some of the goals are directed towards steering and maintaining the economy at its full potential output to attain full employment to achieve a balance of payment equilibrium and to moderate inflammatory pressures. The objectives of this study includes the examination of credit policy, to identify factors militating against the realization of the policies, to evaluate the central banks method of compliance to identify areas of frictions (if any) between the CBN and government and to make recommendation for the effective improvement of the policy guidelines.