CHAPTER ONE

1.1      BACKGROUND OF THE STUDY

To survive in the banking business effective public relations is inevitable. Gone are the days when some banks thrived because the customer had no choice. The situation today is that the bank must convince the customer, to attract his patronage. In other words, customer satisfaction has become a basis for attraction. Also in the banking sector, public relations are most needed to boost customer relations, financial relations and shareholder relations which in turn will help to build a sustainable corporate image.

However, at the close of last millennium two major contradictory phenomena occurred in Nigeria banking sector. The older banks in the sector were not really performing their financial intermediation roles to expectation . some of these older banks that were deemed to have grown solid in every confidence and credibility . this was largely kue to liquidity problems or what has been referred to as financial distress in the industry or better put banking in business for ages and are still strong to survive whatever vicissitude this millennium might bring to the industry .

The issue of public relations was regulated to the background by some banks prior to (during) the distress era of the banking industry. What informed these banks attitudes is largely due to lack of proper

understanding of  what public relations  stands  for  and  its principles.

Another glaring factor that has been ascribed to this ill attitude is that

PR is  being  misconstrued to  mean  the  same  thing  as  advertising  ,

publicity

or

marketing. And

because

f this

misconception,

public

relations activities are not giving adequate attention where they

exit in

such organization. It is unfortunate thing that

some

claim

that

they

do

not use public relations, some even

pride

themselves

on the

fact

they

do not need public relations though

in

such banks

its

easy

to

spot

public relations in their daily operations.

Consequtly  a  number  of  banks  dubbed  ‘New

Generation

Bank

(NGBs)” sprang up within the same

period

when

the majority

of

the

old generation banks were distressed

o meet

the

banking needs

of the

masses  and  have  remained  on  the

scene

till date. The

contradiction

here stems  from  the fact that while the distressed

banks

could

not

survive the stiff central bank guidelines and the ever

rising

inflation in

the  amid

acutely

low customer

patronage, the NGBs

have managed to

remain afloat

even

in the face of

more stiff operational

climate.

                               

The  advent  of  new  generation  banks  and  finance  houses  and  the

consequent cut-

throat competition call for effective

public

relations as

an augmentation