effects of wrong use of public relations in the performance of Bank: A study of Guarantee Trust bank

CHAPTER ONE

INTRODUCTON

1.1 Background of the study

A bank is a financial institution that accepts deposits from the public and creates credit. Banks are profit-making orgasnizations performing as intermediaries connecting borrowers and lenders in bringing temporarily available resources from business and individual customers as well as providing loans for those in need of financial support. Banks are germane to economic development through the financial services they provide. Their intermediation role can be said to be a catalyst for economic growth. The efficient and effective performance of the banking industry over time is an index of financial stability in any nation. In line with the above Kargi (2011) noted that the role of banks remain central in financing economic activity and its effectiveness could  exert  positive  impact  on  overall  economy  as  a  sound  and  profitable  banking sector is better able to withstand negative shocks and contribute to the stability of the financial  system of a nation

In banking sector, especially in commercial banks, there is always a competition. According to Azubuike (2015), the banking sector in recent years has become very competitive that without the use of good promotional tools, such as public relations, success in business may become uncertain and elusive, if not impossible. Since the major aim of every business is to make profit and continue to stay afloat by having its products and services patronized, consumed and appreciated by its target market, it has become important therefore that the organization must also communicate with its present and potential consumers.