The Role of Deposit Money Banks in Financing Small and Medium Scale Enterprise in Kaduna North Local Government. (a Case Study of First City Monument Bank Ltd)

ABSTRACT The study is on the Role of Deposit Money Banks in Financing Small and Medium Scale Enterprise in Kaduna North Local Government. A study of First City Monument Bank Ltd. The objectives of the study are to evaluate the extent to which small scale enterprises have been able to obtain loans and advances from Nigeria deposit money banks, ascertain the problems facing deposit money banks in financing small scale enterprises and examine the role of deposit money banks in satisfying the financial needs of SMEs in Nigeria. The study used a descriptive research design with population of 65 and sample size of 54 using Yaro Yamani formula and simple random sampling technique was employed. Findings showed that there is significance relationship between deposit money banks and lending to small scale industries/enterprises and also in meeting the needs of small and medium scale enterprises. The study empirically brought to light the pivotal role of deposit money Banks credit to growth of small and medium scale enterprises, which in turn accelerate economic growth and development. The study further recommend that the government should be consistent in its industrial policies so as to enable manufacturing firms to factor tariff measures in to trade decisions and the banks should target potential borrowers for its core operations and form them into groups.