Abstract
This project work was focused on the impact of
globalization on Nigeria
banking sector and various theoretical and literature issues were discussed. An
empirical force affects the Nigerian banking sector, using the ordinary least
square estimation (OLS) techniques called the exact AR Newton Raphson method. Data
collected were presented in tables and percentages for easy understanding. The findings
revealed that there is no significant relationship between bank capital base and
foreign private investment. Given the findings of this study, it was concluded
that the compact of globalization has note only benefited Nigerian banks but
has also created threat or challenge to Nigerian banks and policy makers. However,
it was recommended that globalization promoting the provision of adequate and
productive credit to users policy measures must be put into actions to gear up
stakeholders towards reducing the negative impact of globalization on Nigerian
banking sector.
TABLE
OF CONTENTS
Title
Page i
Certification
ii
Dedication iii
Acknowledgements
iv
Abstract
v
Table of
Contents vi
Chapter One: Introduction
1.1 Background to the Study 1
1.2 Statement of Problem 3
1.3 Objectives of the Study 4
1.4 Research Questions 4
1.5 Statement of Hypothesis(es) 5
1.6 Scope of the Study 6
1.7 Significance of the Study 6
1.8 Limitations of the Study 7
1.9 Definition of terms 8
Chapter
Two: Review of Related Literature
2.1 Introduction 10
2.2 Globalization and the Banking System 12
2.3 Pre-condition for Banking Sector 15
2.4 The impact of globalization on the banking system 18
2.5 Globalization and foreign bank presentation
in
Nigeria
23
2.6 Issues in banking sector globalization in Nigeria 26
2.7 How can Nigeria best globalize it’s banking
sector 28
2.8 Globalization and National Policy 29
Chapter
Three: Research Method and Design
3.1 Introduction 31
3.2 Research Design 31
3.3 Description of Population of the Study 31
3.4 Sample Size 32
3.5 Sampling Techniques 32
3.6 Sources of Data Collection 32
3.7 Methods of Data Presentation 32
3.8 Methods of Data Analysis 33
Chapter
Four: Data Presentation, Analysis and Interpretation
4.1
Introduction 34
4.2 Presentation of Data 34
4.3 Data Analysis 36
4.4 Hypothesis Testing 45
Chapter
Five: Summary of Findings, Conclusion and
Recommendations
5.1 Introduction 47
5.2 Summary of Findings 47
5.3 Conclusion 48
5.4 Recommendations 49
References 52
CHAPTER
ONE
INTRODUCTION
1.1
Background to the Study
The role of the banking system as an
engine of economic growth is appreciated by the functions, the constituency
performs. The banking sector provides liquidity that services the needs of the
economy, facilitates the mobilization of surplus funds from both domestic and
foreign sources and optimally allocates such mobilized resources to deficit
economic limits for product investment. The banking system also provides
infrastructure for monetary policy transmission among other thing. In recent
years the Nigerian banking sector has been hit by three major trends namely
deregulation and privatization the introduction of new technologies and new
products and the entry of new competitors. These trends were the outcome of
forces of globalization.
According to Fajigbesi and Ozughalu
(2003) globalization is face with some challenges which do affects the banking
sector especially the immensely baking system from this a consensus has emerged
in recent decades emphasizing the critical role of globalization in the process
of Nigerian banking sector development.
Globalization implies that there will be
massive presence of foreign banks in Nigeria
with the influx of foreign banks, there will be tremendous increase in the
degree of competition in the degree of competition in the Nigeria banking sector. Indeed, the
banking sector in Nigeria is bound to face global financial system, the
survival of banks in Nigeria will be to a large extents depend on hour well
they understand the intricacies of globalization and how well they are prepared
to operate with in the new system.
Until recently, Nigeria banking system
have not performed impressively when compare to other region for instance power
and energy has not grow to the expected level, technologically Nigeria is still
behind in operation, basically the imfrastral system of the country is yet to
be upgraded to a necessary standard. However, Nigeria
banking sector experience significant gains in the current re-capitalization of
Nigeria
banks. These changes took place within the context of globalization/ internationalization
policies and reflect part effort by Nigeria government to integrate
Nigerian banks into the global financial market.
The recent concern about growth of
Nigeria Banking Sector is the impact of globalization to the sector as revealed
by Obadan (2003). The Banking sector plays a critical role in liberating a
country’s wheels for beneficial participation in the dynamics of globalization.
Undoubtedly, globalization has impacted
on most factors identified in the literature to be determinants of changes in
the banking sector. The nature of these relationship need to be ascertained the
study of these type, is therefore warranted since it’s major objective is to
examine empirically the impact of globalization the Nigeria banking sector.
1.2
Statement
of Problem
The crux of this study is to find out
the impact of globalization in Nigeria banking system, and how Nigeria banking
sector can benefit and manage the cost of globalization, with regards to the above
researcher one of the view to review existing literature and fill the gap that
exist by proffering possible solutions is to identify problem.
1.3 Research Questions
1. What
are the globalization factors that affect the Nigerian Banking Sector?
2. What
are the cost benefits of globalization to Nigerian Banking System?
3. What
are the preconditions for banking sector globalization?
4. To
what extent has foreign banks penetrated Nigerian banking system?
5. How
can the banking system be prepared for the challenges of globalization?
1.4 Objective
of the Study
The main principal objective of this
study is to empirically investigate the impact of globalization on Nigerian
banking system. Specifically the objectives of the study will also include.
1. To
identify the major globalization indicators that affect Nigerian banking
system.
2. To
identify the cost and benefit of banking sector globalization.
3. To
find out the pre-conditions for globalization in the Nigerian Banking Sector.
4. To
evaluate the penetrator of foreign bank on Nigerian Banking System.
5. To appraise policy
measure of government towards ensuring Nigeria banks benefits from
globalization.
1.5 Statement of Hypotheses
In order to achieve the objectives of
this study the following hypothesis are stated.
Hypothesis One
Ho: There is no significant
relationship between banks capital base and economic growth.
HI: There is significant relationship between
banks and capital base and economic growth.
Hypothesis Two
Ho: There is no significant
relationship between bank capital base and foreign private investment.
HI:
There is a significant
relationship between bank capital base and foreign private investment.
1.6 Scope
of the Study
These research works cover Nigeria. To
capture the Impact of globalization on Nigeria Banking System substantially and
make statements that is based on facts and figures (objectives) and to enhance
unbiasedness, a period of 36years encompassing serve as the time horizon for
the study. The constraints encountered in articulating this work include the
difficulties and financial constraints involved in getting date, the time spent
on solving and organizing the work combined with normal academic activities and
other logistics problem. A poor response from expert in the field was also a
factor .at limits this study.
1.7 Significance
of the Study
The importance of knowing how
globalization impact on Nigerian banking system can be over emphasized. This
study is very important as it would examine to what extent certain global
variables explained what happens to Nigeria banking sector.
In fact, this research work will add to
the ready-made shelf of well-structured publicly researcher projects which
would be a hard tool for bankers, and policy makers in making decisions on how
to influence banking sector development through benefiting from the outcome of
globalization. Student in Nigeria
and in other less developing countries interning to broaden their knowledge
about the nexus of globalization and banking sector development.
Research will also find this material
useful for subsequent research work on the issue. Government and financial
regulators would also find this research work handy especially in the areas of
policy formulation and stimulation.
1.8 Limitation of the Study
There have been lots of challenges
carrying out this research work, which has led to the limitation of the study,
busy schedules of managers and staff of the organization which we needed to
source for information which made my trips numerous, some information tagged “top
secret” were not disclosed.
1.9 Definition of Terms
Banking:
This is the provision of payments facilities, credit and capital to
individuals, firms and government universal banking combines these functions in
the same banks, as for example in European countries including Germany. Modern
banking is increasingly adding further functions including stock broking and
port folio management.
Banking
System: This is the network of institutions responsible for providing
banking services is actual banks providing services to the general public which
may be universal bank or specialist institutions dealing with particular types
of banking business.
Globalization: This is the process by which the whole world becomes
a single market i.e. goods and services capital and labour are treaded on a
world wide basis and information and results of research flow readily between
countries. The rise of the internet and the start which has been made on
liberalizing international trade in services will continue this movement in the
21st century.
Financial
Sector: This is the part of the economy concerned mainly
with lending and borrowing long or short term loan which includes banks,
non-bank financial intermediaries such as building societies.
Click “DOWNLOAD NOW” below to get the complete Projects
FOR QUICK HELP CHAT WITH US NOW!
+(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.
Login To Comment