• 0 Review(s)

Product Category: Projects

Product Code: 00001785

No of Pages: 71

No of Chapters: 5

File Format: Microsoft Word

Price :






Recapitalization is a major step in the country, taken by the central bank of Nigeria to make the financial institution (especially banks) to the strong. This has made Nigerian banks to prepare for the challenges ahead.  

It makes the financial institution to have a strong capital base which is far beyond what was in existence before the re-capitalization exercise.

However, the financial sector have to reposition itself in order to meet up to the challenges ahead. This work will be on the effect of recapitalization.


Aims and Objectives of Study

The objective of the study is to determined the effect of re-capitalization policy on the performance of financial institutions.


Literature Review

Related literatures review and hypothesis were formulated questionnaire. Structured and administered to shareholders in the banking industry. Researchers at the financial institutions training centre various banks headquarters, professional etc. 


Researcher Methodology

The hypothesis formulated was tested using chi-square model to test the relationship between the variables crammer’s statistics to test the strength of the relationship and likert scale to measure the degree of effectiveness.


Findings, Recommendation and Conclusion

Findings were made from the analysed data. Recommendations and conclusion suggesting that there is need for the regulatory authority to ensure that, there is adequate provision of necessary guidelines for the operators in the industry. They should also ensure strict compliance by effectively monitoring with the directive provided so that the aim of recapitalization policy be achieved fully as to the effective performance of the banking sector. Also that the financial institutions should embrace good corporate governance principles to enhance public confidence in their operations and the reports that emanate from their activities.



Title Page






Chapter One


Background of the Study

Objectives of the Study 

Scope and Limitation of the Study

Statement of Hypothesis

Organization of the Study

Definition of Terms


Chapter Two

Literature Review

Historical Background of the Banking Industry

The Re-Capitalization Policy

Reasons for Recapitalization Policy

Antagonist of the Re-Capitalization

Re Post Re-Capitalization Policy (Expectation)      


Chapter Three

Research Methodology


Research Design and Methodology

Research Techniques

Sources of Data

Method of Data Collection and Sampling Technique

Data Processing and Presentation

Data Coding and Construction of Data Analysis Sheet

Method of Investigation and Data Analysis


Chapter Four

Data Analysis and Discussion Of Result


Coding Of Questionnaire

Preparations of Tables


Chapter Five

Summary of Major Findings, Conclusion and Recommendation


Recommendations to the Regulatory Authority (Body)

Recommendations to the Operators in the Financial Institutions

Recommendations to the Banking Public












There is no doubt that as countries progress in their wealth creation and income generation drives, their financial institution invariably enhance their asset, institution and market there is no doubt that in any economy the financial system is the hub of productive activity as it performs the primary provider of payment services and the fulcrum of monetary policy implantation.


Even as the banking (financial institution) is very important to the nations economy, it has experience serious of threat of distress in the past 47 years of the country independence, which lead to the liquidation of many banks in the process. Experts often define banking distress as a state of financial difficulties experienced by a bank and which hinders it’s ability to discharge it’s obligation as at when needed.


The Nigerian banking sector was thrown into a serious confusion on 6th July, 2004, when the governor of the central bank of Nigeria Professor Charles Soludo make it known in a meeting held with the bankers committee at the Central Bank headquarters Abuja, that all bank operating in Nigeria should raise their minimum capital base to N25 billion as obtainable before now.


The essence of the reform is to ensure a diversified, strong and reliable banking sector which will ensure the safety or depositors money, play active developmental roles in Nigeria economy and be compel and competitive player in the African regional and global financial system.



Banking Sector reform like every development process is an ongoing endeavor aimed at assisting and focusing the evolutionary  direction of the industry so as to achieve the desired momentum and shape if the development of the economy.


Thus the subject banking sector reform a broad one incorporating various regulatory supervisory and legislative measure aimed at consistently improving the banking industry is pursuit of a better economy.

In view of the above, the Governor of the Central Bank of Nigeria, Professor Charles Soludo, unveiled a 13 point reform agenda to banks Chief which includes an upwards review of banks capital base from N2 billion to N 25 billion to meet up with it role of development and others such as

a.           Be a strong and reliable banking sector which will ensure the safety of depositors money.

b.           Play active development role in the Nigeria economy

c.            Become competent and competitive in the regional and global financial system    


The recapitalization policy with its attendant consequences was motivated by the globalization trend and the need to have a sound and solid banking system that would support their nation’s economy in term of real sector development.


The issue of recapitalization is not new to the banking industry, it has happened between 1990 and 1992 then there were 119 banks in the industry. Some of the collapsed while others survived until 2000 when the issue of banking reform comes up out of the 89 banks that was remaining today after merger and acquisition is 25 banks which includes:

1.           Access Bank Plc

2.           Afri Bank Plc

3.           Diamond Bank Plc

4.           Eco Bank Plc

5.           ETB Plc

6.           FCMB Plc

7.           Fidelity Bank Plc

8.           First Bank Plc

9.           First Inland Bank Plc (Fin bank Plc)

10.       Guarantee trust Bank Plc

11.       IBTC Chartered Bank Plc

12.       Skye Bank Plc

13.       Stanbic Bank Plc

14.       Spring Bank Plc

15.       Standard Chartered bank

16.       UBA Plc 

17.       Union Bank Plc

18.       Sterling Bank Plc

19.       Unity bank

20.       Wema bank

21.       Zenith bank



The study seeks to investigate the effect of the re-capitalization policy on the performance of financial institution. A case study of United bank for African Plc (UBA) this will be dealth with by looking at the following problem.

a.           Problem of insufficient capital of banks

b.           Problem of inefficient nature of services by banks

c.            problem of numerous and high number of banks in the banking industry

d.           Problem of persistent illiquidity, poor assets quality and unprofitable operation

e.            Problem of unsoundness of the banking industry

f.             Problem of individual ownership and control of most bank         

g.            Problem of weak corporate government in banks

h.           Problem of raising capital to meet up with the capitalization

i.             Problem of job losses as a result of the  re-capitalization policy



This study intend to examine the performance of the banks (financial institution) as a result of re-capitalization policy by the CBN in examining these issues the study will.  

a.           Assess the sufficiency of the capital base of the banks

b.           Find out if the banks are rendering efficient services

c.            Determine the liquidity assets quality and profitability of the banks

d.           Find out the soundness and control on banks

e.            Assess the ownership and control of banks 

f.             Assess the feasibility of raising additional capital to share up capital base of the banks

g.            Find out the consolidation, merger and acquisition process of the banks

h.           Assess the extent of job losses which may arise as a result of the re-capitalization policy

i.             Assess banks and know how many banks ca play active development roles.



The study is very important because it tend to investigate and reveal the effect and performance of the financial institution as a result of re-capitalization policy is also very necessary because it assist student who went to update, improve and increase their knowledge about financial institution (banking industry) which also include

a.           To know the capital base requirement of banks

b.           Reveal the nature of services rendered by banks

c.            Determine the number of bank suitable for the industry

d.           Highlight the ownership and corporate governance of the bank

e.            Ascertain the soundness of banks in the industry

f.             To know the liquidity assets quality and profitability of the banks     

g.            Reveal the capital raising process of banks 

h.           To know the numbers of jobs that may be lost due to the re-capitalization policy.



For the purpose of relevant fact this study will be limited to the united bank for African Plc (UBA) and re-capitalization policy

Apart from Qualitative factor such as time constraint, limited financial resources, proximity and accessibility to obtain relevant data. The findings were base on the bits and pieces of information obtained from the national dallies, internet materials and personal interviews.        



For the purpose of this research work the hypothesis will be base on Null and Alternative Hypothesis the recapitalization policy of CBN has effect on the performance of the financial institutions (banking sector).


Null Hypothesis H0: B = O. The recapitalization policy has no effect on the performance of the financial institution.

Alternative Hypothesis HA: A = 0. The recapilitalisation policy has effects on the performance of financial institutions (banking sector).



The rest of this study is organisation into four part as follows:

A    Chapter Two        -     literature review 

B    Chapter Three      -     Research methodology

C    Chapter Four       -     Data analysis, evaluation and Interpretation.

D    Chapter Five        -     Summary of major findings, recommendation and conclusions.



The following are the definition of terms on the effect of re-capitalization policy on the performance of financial institutions.

1.           Financial Institutions: These are the institutions that provide financial services to its clients. They also facilitates the flow of money through the economy and also, they are responsible for transferring funds from investors to companies in need of those funds.

2.           Open Market Operation: These are monetary instruments periodically issued by CBN to mobilize excess fund in the economy. They double as indirect credits to government to finance its current budget banks are required to maintain at least 10 per cent of the 30 per cent liquidity ratio in treasury bill.

3.           The Central Bank of Nigeria (CBN): This is a monetary authority established by the government of a country to oversee the overall financial institutions of the country. It is the apex regulatory body of the banking industry of that country.

4.           Direct Control: This entails the issue of credit guidelines to every bank, stating the details of monetary policy and the lending activities expected to banks.

5.           Moral Suasion: This refers to a gentleman appeal to commercial banks to reduce their lending activities. CBN usually organised seminars, workshops where they make the appeal.

6.           Bank Rate/Rediscount Rate: This is the minimum rate at the central bank is prepared to lend through the discounting of short term securities to the commercial banks or through lending by cash directly.

7.           Commercial Bank: A commercial bank can be defined as a monetary institution that is fully owned by either the government (federal or state) or private businessmen or jointly owned by government and private individuals for purpose of making profit.

8.           Merchant Bank: This is refers to as a whole sales banks, acceptance house and issuing houses. They operate with few branches and most of it are concentrated in urban industrial and commercial centres.  

9.           Loans: Constitute the major assets held by banks and they are the major source of income to banks.

10.       Bank: This means any person who carried on banking business and includes a commercial bank, a merchant bank and a profit and loss sharing bank.

11.       Development Banks: These are speciallise financial institutions meant to provide medium and long term fund to accelerate the pace of development in the country.

12.       Other Non Bank Financial Institutions: A Non Bank Financial Institution (NBFI) is an institution that is licensed to transaction business but not to accept deposit from the public.

13.       Cheque Clearing: This is the process of collecting the proceeds of the other banks cheque deposited by customers.

14.       Foreign Exchange Rate: Foreign exchange rate is the ratio at which the domestic currency will exchange for a foreign currency. 

15.       Nigerian Stock Exchange (NSE): The Nigerian Stock Exchange is a private, non profit making organisation, limited by guarantee

16.       Stock Exchange Commission (SEC): This

17.       Good Will: This is the reputation at which a company acquires as a result of it’s effectiveness and efficient operation.

18.       WACB: The WACB is a monetary system common to Nigeria, Gambia, Ghana and Sierra-Leone.

19.       Debenture: These are securities issued by companies to borrow on long term basis from investors in the capital market.

20.       Loan: Money advanced to a borrower usually to be repaid with interest and evidence by notes, bonds etc.

21.       Bond: An interest bearing certificate of debt, usually issued in series by which the issuer obligate itself and repay a principal amount and interest at a specified time, usually 5 years or more after date of issue.

22.       Investment: The use of money for the purpose of making money to gain income or increase capital or both safely of principal is an important consideration.

23.       Re-capitalization: Is to ensure a diversified strong and reliable banking sector, which will ensure the safety of depositor money and also become competent and competitive in the regional and global financial system and to promote the soundness, stability and enhanced efficiency of the system.

24.       Debenture Stocks: These are securities issued by companies to borrow on long-term basis from investors in the capital market.

25.       Interest Rate Regulation: These are directly controlled by the central Bank in Nigeria. The CBNM pegs interest rate within a particular range and this has effect on the commercial banks vis-à-vis the rate of inflation in the economy.     

26.       Liquidation: This can be defined as the availability of ready money or the ease with which an asset can be converted to cash in order to meet the depositors on demand.

27.       Stabilization Securities: Are issued to mop up excess liquidity from the economy and to influence money supply and demand. Bankers rather regard it as the penalty paid for exceeding the required minimum liquidity ratio.

28.       Shares: A share is defined as the interest of members in a company which is measured in monetary term for the purpose of the holder entitlements and indebtedness (entitlement in form of dividend and indebtedness in form of liabilities)      

29.       Debenture: This is a certificate of indebtedness which is usually issued by public limited liability company to one class of it’s creditors known as debenture holders.

30.       Share Premium: These are reserve normally arise in accounting book in compliance with company Act (or Decree) requirement.

31.       Capital Adequacy: Capital adequacy measures the relationship between banks capital and it’s 2 weighted assets.

32.       Direct Debt: This is a method of payment in which the creditors apply to the bank for payment, which is debited to the customer account. This method is used by many companies like insurance companies for collection of premium savings and loans etc. 

Click “DOWNLOAD NOW” below to get the complete Projects


+(234) 0814 780 1594

Buyers has the right to create dispute within seven (7) days of purchase for 100% refund request when you experience issue with the file received. 

Dispute can only be created when you receive a corrupt file, a wrong file or irregularities in the table of contents and content of the file you received. 

ProjectShelve.com shall either provide the appropriate file within 48hrs or send refund excluding your bank transaction charges. Term and Conditions are applied.

Buyers are expected to confirm that the material you are paying for is available on our website ProjectShelve.com and you have selected the right material, you have also gone through the preliminary pages and it interests you before payment. DO NOT MAKE BANK PAYMENT IF YOUR TOPIC IS NOT ON THE WEBSITE.

In case of payment for a material not available on ProjectShelve.com, the management of ProjectShelve.com has the right to keep your money until you send a topic that is available on our website within 48 hours.

You cannot change topic after receiving material of the topic you ordered and paid for.

Ratings & Reviews


No Review Found.

To Review

To Comment