PROBLEMS OF NEW BANK IN NIGERIA
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
PROBLEMS OF NEW BANK IN NIGERIA
CHAPTER ONE: NEW Bank PROBLEMS IN NIGERIA
The role of the banking industry in economic growth cannot be overstated. The government established bank money for development reasons. The government owns various banks,
such as First Bank of Nigeria and others. Both institutions. Banks, on the other hand, are founded in Nigeria and other parts of the world to perform the following functions:
1 Loans from the government to customers
2 Customer money and important goods, such as certificates, are protected.
3 Managing customer investments and providing insurance advice.
4 Providing facilities for international trade financing, such as documentary credit.
5 Money creation by the country’s central bank.
Sixth, mobilisation of savings and other deposits.
7 Providing consulting services.
8 Providing traders with foreign exchange services.
Customers have access to nine night safes.
Customers who authorised their banks to pay and collect cheques on their behalf received ten agency services.
However, the above functions and tasks of banks are only a few examples.
Few because the banking industry is dynamic. It is affected by public trust, and because of the impact on the nation’s economic life, it requires high quality management and organisational structure to achieve optimum operating efficiency and profitability.
Since the announcement of the structural adjustment plan [SAP] and its deregulation initiatives, the Nigerian banking system has experienced a series of policy shocks, with new banks bearing the brunt of it.
The central bank of Nigeria’s guidance on reserve requirements and a limited capital base for the creation of new banks are examples of such policies or guidelines.
Another trend is the removal of government banks. Interest on current account cancellation of foreign denominated loans. The implementation of the contentious national deposit insurance organisation and the liberalisation of the foreign exchange market.
1.1 STATEMENT OF THE PROBLEM
The biggest issues confronting new banks in Nigeria stem from central bank [CBN] guidelines or directives. There are two kinds of directives: –
A] Directive on the formation of new banks.
B] Measures taken to reduce the economy’s liquidity.
The government’s approach in this regard is to withdraw deposits from financial intermediaries held by parastatals and other government bodies.
Other options include the closure of foreign exchange markets.
These measures are implemented at the same time and at a time when the liquidity ratio is already high. Because of their climate capital base, these had a significant impact on the new guidelines.
Second, the economic restructuring programme caused the naira to depreciate as it sought the genuine worth of the naira in the foreign market. As a result of such devaluation, the cost of materials and fixed assets has skyrocketed, threatening the growth of new institutions.
1.2 OBJECTIVES OF THE STUDY
This paper intends to investigate the challenges of new banks in Nigeria in order to determine how the new banks have fared in terms of these problems and to offer appropriate treatments that would minimise the problems.
This study is also an attempt to offer solutions to avoid similar difficulties in the future, keeping in mind the proverb “prevention is better than cure.”
1.3 SIGNIFICANCE OF THE STUDY
This research will be extremely useful to the government, which frequently implements policies that influence banks and the overall economy. It will help us assess the impact of such policies on the Nigerian economy, whether they are favourable or harmful, and will also serve as a guideline for policymakers on how to best advertise such policies and encounter policies.
This work will also be of enormous use to the banks, as it will demonstrate how far they have progressed in addition to offering potential solutions to the difficulties they face.
It will be advantageous to individuals who seek to enter the banking sector in knowing that they will not earn from a gold platter. They confront the same issues as any other industry.
Finally, this research will add to the current literature in the areas of banking, finance, and policy programmes to improve the country’s and the world’s economic development, as well as serve as inspiration for future scholars in the subject.
1.4 HYPOTHESIS STATEMENT
The following hypotheses were examined in order to adopt a scientific approach to the realisation of the objectives of this research study.
Ho: the central bank’s policies favour new banks.
Ho, the policies of the central banks are unfavourable to startup banks.
1.5 SCOPE OF THE STUDY
This study focuses on the issues confronting Nigeria’s new banks. It will also contribute to the current literature in the areas of banking, finance, and policies aimed at enhancing the country’s and the world’s economic development.
1.6 LIMITATIONS OF THE STUDY
This researcher was entered during the execution phase, which constrained the scope of the study effort. The abstract contains the following information:
a. INADEQUATE DATA COLLECTION:
The difficulty in obtaining suitable data due to censorship and bureaucracy in the country’s information flow.
b. FAILURE TO COOPERATE:
The researcher was further constrained by the unwillingness of certain supervisors and officers to divulge critical project information.
d. FINANCIAL STRESS:
The failure to obtain sufficient funding when writing the proposal has constrained the scope of the research activity.
d. TIME RESTRICTION:
Due to time constraints, only libraries and organisations in Enugu such as IMT Library, ESUT Library, National Library, and National Achieves Enugu are available.
1.6 DEFINITION OF TERM:
1 CBN: Nigeria’s central bank is the apex of the country’s banking system. They are the government’s representatives in the banking industry, primarily acting as bankers to the government. They also advise the government on monetary policy and carry out the policy on its behalf.
2NDK stands for National Deposit Insurance Corporation. The federal government of Nigeria established this cooperative, which requires all banks to insure each deposit account up to fifty thousand naira. It was created to protect depositors’ funds from bank failures.
2 MONETARY POLICY: Policies dealing with monetary authorities’ discretion and control in order to attain declared economic aims.
CORPORATE STRATEGY: The whole character of a company’s connection with its surroundings, particularly its customers and competitors.
A company’s corporate strategy can be described in terms of the products it offers the market, as well as how its resources are distributed to its numerous activities.
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
