ABSTRACT
This research work examined the impact of Banking reforms and their effects on Banks performance in Nigeria. It specifically determined the effect of policies of interest rates deregulations, exchange rate reforms and bank recapitalization on banks performance, and analysed how banks internal characteristics and industry structure affect the performance of Nigerian banks. The study utilized ways of eliminating unethical practices amongst banks reforms, ways for implementing appropriate lending policies and the extent to which banks depend on public sector deposits and foreign exchange trading. The researcher revealed the research methodology and how data for his work were collected from two main sources, namely the primary and secondary source.
The primary source include oral interview and questionnaire while the secondary sources include textbooks, internet article, journals and unpublished articles. Having collected the finding, the relevant data and getting them analyzed, the researcher summarized the interesting finding in the cause of research, the researcher hence concluded in the recommendation that adequate or minimum capital should not be the only criteria adopted by the central Bank of Nigeria (CBN) in granting banking license, special attention should be paid to the following areas as well as the caliber and ability of the management team of banks to which the banks inputs are entrusted.
TABLE OF CONTENTS
Cover page
Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of contents
CHAPTER ONE
1.0 Introduction
1.1 Background of the study
1.2 Statement of the problem
1.3 Objective of the study
1.4 Research question
1.5 Significance of the study
1.6 Scope of the study
1.7 Definition of terms
CHAPTER TWO
2.0 Literature Review
2.1 Introduction
2.2 Models and Theories Relevant to the Research
2.2.1 Review of Banking in Nigeria
2.2.2 Effects of Banking Reforms in Banking Performance
2.2.3 Merger and Acquisition of Banks
2.2.4 Introduction of Prudential Guidelines in 1990
2.2.5 Introduction of universal Banking
2.2.6 Establishment of more Discount Houses
2.3 Banking Reforms under Prof Soludo
and Mallam Sanusi Lamido Sanusi
2.3.1 Impact of Banking Reforms on the Nigeria Banking Industry
2.3.2 Some Problems that still exist in Nigeria Banks Inspite of the reforms
2.4 Summary of Literature Review
CHAPTER THREE
3.0 Research Methodology
3.1 Design of the study
3.2 Area of the study
3.3 Population of the study
3.4 Sample of the study
3.5 Instrument for Data collection
3.6 Validity and Reliability of the Industry
3.7 Distribution and Retrieval of the instrument
3.8 Method of Data Analysis
CHAPTER FOUR
4.0 Data Presentation and Analysis
4.1 Analysis of Data
CHAPTER FIVE
5.0 Summary, conclusion and Recommendation
5.1 Summary of the findings
5.2 Conclusion
5.3 Recommendations
5.4 Limitations of the study
5.5 Suggestions for further research
References
Appendix
CHAPTER ONE
- INTRODUCTION
- BACKGROUND OF THE STUDY
The banking system in Nigeria has under gone radical changes since independent. Banking developed from an industry which public sector ownership predominated in the 1970’s and in which Nigeria private has played an increasingly important role since the mid 1980’s. Government policies had major influences on developments in the banking industry extensive government intervention characterized financial sector policies, beginning in the 1960’s and intensifying in the 1970’s. The objective of which was to influence resource allocation and promote indigenization. Since 1987 financial sector reform have been implemented encompassing elements of liberalization and measures to enhance prudential regulation and tackle bank distress.
The project express the banking reforms and their effect on banks performance in Nigeria in the period since independence. The researcher examine how banks were affected by the reforms, the reasons behind the growth of private sector banks, the cause of the financial distress in the banking industry and the efficiency (ability to produce effectively) of the financial reforms undertaken since 1987. The researcher explores two related issues firstly, the government controls on financial sector reforms to enhance the efficiency of intermediation in banking markets, has been limited in part because the legacy of pre-reform intervention in banking markets which left large section of the banking industry in financial distress.
Its unavoidable that the banking system is the engine growth in any economy given its function of financial intermediation through this function banks facilitates capital formation lubricate the production and promote economic growth.
- STATEMENT OF THE PROBLEMS
However, despite these reforms in the banking sector, some unethical practices are still seen among banks leading to loss of confidence on the bank by the public.
Poor implementation of banking reforms policies by banks in Nigeria in appropriate implementation of lending policies laid down by the Central Bank of Nigeria (CBN).
There exists the problem of over dependence on public sector deposits and foreign exchange trading.
- OBJECTIVES OF THE STUDY
- To find out ways to eliminate unethical practice among banks which leads to the less of confidence in the banking industry.
- To find better strategies to improve the poor implementation of banking reforms policies by banks in Nigeria.
- To determine ways for appropriate implementation of lending policies laid down by the Central Bank of Nigeria (CBN).
- To ascertain the extent in which banks depends on public sector deposits and foreign exchange trading.
1.4 RESEARCH QUESTIONS
The primary source of the study is to examine the effects of banks reforms in Nigeria. The specific questions aims are as follows:
- Does banks reforms increase foundry for SMES?
- What is the level of compliance with guidelines for operating a consolidated banking system more especially banks here in Anambra?
- What are the capabilities of both the regulated and the regulatory institutions and the challenges posed by the consolidation?
- What are the various roles played by banking reforms in the development of the Nigeria financial system?
- Has reforms and banks consolidation have achieved its aim of strengthening the capital base of banks and providing a healthy competitive environment among banks?
- What are prospects and the performance of banks after these reforms are implemented?
- What is the relationship between banking reforms and their effect on banks performance in Nigeria?
1.5 SIGNIFICANCE OF THE STUDY
The research work will be beneficial to banks management to plan their marketing strategies in such a way as to better implement and define the various banking reforms and their performance on their products.
Regulatory authorities is to critically examine whether the various banking reforms actually enhance banks performance.
Another one is bank employees, t o enhance the relationship between them and the customers and even improve their effectiveness and efficiency in service delivery and also students / researchers they will find this topic important to their studies also future researchers, who will carry out a research on a similar topic.
1.6 SCOPE OF THE STUDY
This research work was carried out at Anambra State in the eastern part of Nigeria where some banks were selected to represent other banks. The study period is from the starting of banking reform till now.
1.7 DEFINITION OF TERMS
Acquisition: This is an act of acquiring control by one bank over assets and management of another bank without any combination of bank.
Consolidation: This is the combination of two or more banks that are legally dissolved and a new bank is created
Merger: This is amalgamation or combination of two or more banks combined to become one bank.
Reform: Solution or remedies adopted to change from worse condition to improve or better condition by eradicating faults. or an act of amendment for suitable bank operation.
Performance Service: Is the assessment or evaluation of banks based on the quality of work done in executing the obligation.
Re-capitalization: Is defined as the enhancement and restricting the financial resources of an organization with the view of enlarging the size of the long term funds available to the banks in quote.
Capital: This is the net worth of a bank derived from subtracting the total liabilities from the total assets.
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