ABSTRACT
The Study investigated
the effect of bank regulation in the stability of the Nigeria bank system. The
objective is to find out whether the effect of bank regulation is improving the
growth and stability of Nigeria bank system, to know what the
government doing to maintain or encourage the bank regulation in
the stability of the Nigeria Bank system. We tested two hypothesis using
chi-square methods. In hypothesis one, we tested the relationship between bank
regulation and stability Nigeria banking system development. After calculated
it was discovered that chi-square calculated is greater than chi-square
tabulated. So the null hypothesis was rejected and all the alternative is
accepted which said that, there is a relationship between stability of Nigeria
bank and stability Nigeria banking
system development. In hypothesis two, we tested the relationship between bank
regulation and implementation of government policies. After calculated, it was
discovered that chi-square calculated is greater than chi-square tabulated and
the alternative is accepted which said that there is relationship between
stability of Nigeria bank and
implementation of government policies.
TABLE OF CONTENTS
CHAPTER ONE
1.0
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
1.2
STATEMENT OF THE PROBLEM
1.3
OBJECTIVES OF THE STUDY
1.4
RESEARCH QUESTION
1.5
RESEARCH HYPOTHESIS
1.6
SIGNIFICANCE OF THE STUDY:
1.7
SCOPE OF THE STUDY
1.8
LIMITATIONS OF THE STUDY
1.9
DEFINITION OF TERMS:
CHAPTER TWO
2.0 REVIEW OF RELATED LITERATURE
2.1
TYPES OF DEPOSIT BANK
2.2 THE RELATIONSHIP
BETWEENstability of nigeria bank AND THE
BANK SYSTEM AS A WHOLE.
2.3
FLOW OF FUNDS IN AN OPEN BANK SYSTEM
2.4
EFFECTS OF BANK REGULATIONIN
FOR STABILITY OF THE NIGERIA BANK
SYSTEM
2.5
FUNCTION OF DEPOSIT BANK.
2.6
CONSTRAINS FACING stability of nigeria bank IN EFFECTIVELY PERFORMING THEIR STABILITY NIGERIA BANKING SYSTEM REVAMPING
EFFECTS IN NIGERIA BANK SYSTEM
2.7
DEFINITIONS AND EFFECT PLAYED BY DIFFERENT BANKING FINANCIAL
INSTRUCTION.
2.8
DEFINITION AND EFFECTS PLAYED BY DIFFERENT NON-BANK FINANCIAL
INSTITUTION.
CHAPTER
THREE
3.0 RESEARCH METHODOLOGY
3.1 INTRODUCTION
3.2
RESEARCH DESIGN
3.3
POPULATION OF STUDY
3.4
METHOD OF DATA COLLECTION
3.5
SOURCE OF DATA COLLECTION
CHAPTER FOUR
4.0 PRESENTATION AND ANALYSIS OF DATA
4.1 INTRODUCTION
4.2 Test
of hypothesis
CHAPTER FIVE
SUMMARY,
CONCLUSION AND RECOMMENDATION
5.1 SUMMARY OF FINDING
5.2 CONCLUSION
5.3 RECOMMENDATION
BIBLIOGRAPHY
APPENDIX: Questionnaires
CHAPTER ONE
1.0
INTRODUCTION
Even since the inception of the first three successful indigenous
banks in Nigeria, the National Bank of Nigeria established on February 11th
1933, the Agbommagbe Bank (now Wema Bank Nig Plc) in 1945, The African
continental Bank Plc in 1947 and others subsequently established in the
country during the period from 1952 when the first banking ordinance was
enacted to regulate and control the activities
of commercial banks in the country till present day, and have remained a
permanent feature in our banking industry.
During the free banking era (between 1892 and 1952) there was no
form of banking act or ordinance to regulate the stabilities shipment and
operation of commercial bank. There are as it is presently supervised. Many
bank were registered. Some of did not open their doors for business ever for a
day while some simply collected customers deposits and varnished. This had
resulted to the deprivation of our economy an as a whole the much needs fund
for development and depriving individual
the hard earned funds, this also brought about loss of faith trust on the
commercial banks by Nigeria and the subsequent under developed banking habit in
the country.
However, with the introduction of the first banking ordinance in
1952 and the central bank of Nigeria (CBN) ordinance in 1958 to regulate and
control the activities of commercial banking in the country fraud in commercial
banks have rather increased in size, and method used by fraudster acquires
greater sophistication day by day. Presently with the introduction or modern
banking procedures ie improved communication system, automatic electronic
gadgets and computers networks into our banking system coupled with various
precautionary measures taken by banks. To prevent fraud in the banks fraud have
rather taken unclear dimension and the six and form involved increase in a
geometric progression. Other Amptiam in his articles obstacle o growth of
baking industry saw that it was discovered during investigation that bank now
take extra precaution before clearing a cheque because of rampant incident of
fraud and forgeries the form of fraud has placed banks loss on the average of #
1m per each working day of the year in Nigeria Asimi kola in his own article
“The cash economy phenomenon” also observed that fraud has become sophisticated
as to make forget cheque book good the owner to confirm it as his own signature
recently in the bid curb the grand fraud, CBN issued a directive to bank to
increase it capital base to # 25 billion. Previously section a of the decree
1990 state that, the minimum paid up capital for bank is #50 million for
commercial bank. This directive come up after several bank has been discovered
to have defrauded it is customers mostly foreign investors. In this required.
Bankers in a bid to reduce the size and rapid occurrence of fraud
in their bank now take adequate precautionary measure before clearing cheques
drawn their customers accounts. These precautionary measures bring into focus
another problem facing commercial banks,. The problem of time wastage in the
banking hall. Ashimi Kola in his article also said that customer waits a
minimum of about two hours in banking hall of Nigeria banks to cash their
money. This is one of the most legitimate criticisms of the quality of bank services. The checking process is long
and by the time a cheque is released to cashier for payment, the customer is
frustrated and perhaps Rast asleep among feering crowd. This calls for an
overhaul of the checking and control system. E above being the general
situation of things in commercial banking fraud is therefore number one enemy
to all concerned with growth and development of banks., the intention of this
research work therefore aimed at identification of the fraud on Nigerian
economy in general and on Afribank Nigeria plc Enugu in particular and
recommend more functional measure that will help in the prevention and to
reduction of fraud in commercial bank in Nigeria.
1.1 BACKGROUND OF THE STUDY
The historical
background of these stability of Nigeria bank
is mode of operation which is an important aspect of this study. By
their historical background. We can now know the aims purpose, objectives of these
stability of Nigeria bank in our bank
system. In 1st July 1959,
the first central bank of Nigeria (C.B.N) which was the ampere bank that
control other stability of Nigeria bank in
the country was established. Bank regulation is the oldest of all banking
institutional in Nigeria, it dates back to 1892 when. It was known as the bank
of British West Africa (Now First bank of Nigeria) was established. This was
followed in 1917 by the Barchys bank
(Dominidu, colonia and overseas) (DCO) (Now union bank in 1933. the
first successful Indigenous bank regulation was named National bank of Nigeria
was established in 1948. African continental bank (ACB) was established by 1960
at independent, these were (12) twelve banks operating in the country with a
total number of 160 offices and branches scattered in different locations of
the country.
Many specialized credit institution have in the past two and half
decades developed. These includes the Nigeria Merchant banks, Nigeria
industrial stability bank (NIDB) Nigeria bank for commerce and industry (NACB)
established 1973 and restructured in the 1978 to include the finance of
co-operative bank established in the federal mortgage bank of Nigeria
constitution in July, 1977, merchant banks then are relatively new business
which were trance to 1960 when Selected bank regulation in Nigeria was
established. The Non-bank stability of Nigeria bank includes finance companies, the oldest
finance Ltd was established in 1959.
Then insurance companies, then first insurance companies were 1921
and was named Royal exchange Assurance company, investment companies unit
trust, co-operative societies which have its from the establishment of
co-operative stores in 1844 in Britain, its origin in foundation Nigeria banks
to the eighteen (18th) century Bureax De change which was establish
in 1989 though the decree that the same your and person provident fund.
It is the desire
of all these bank regulation to create an impact on the Nigeria bank system.
Also the citizen’s expectant from all these stability of Nigeria bank is to
see the effects played by these stability of Nigeria bank in our present stability Nigeria banking system situations.
1.6
STATEMENT OF THE PROBLEM
In view of the stability of the Nigeria Bank system, there are
bedeviled practices which disturbs bank regulation in carrying out their effects
for the growth of the bank system. Those practices are as fellows below:
(1)
Lack of
ability to supply funds (Loan) to the small scales industries (Business)
(2)
The
inability to offer interest yielding financial instruments.
(3)
The
inability to effectively manger the financial aspect of the bank system.
1.7
OBJECTIVES OF THE STUDY
The objective of this research work are tacitly states as follows
I.
To determine
the contribution of bank regulation toward a positive stability Nigeria banking system growth and
wealth creation.
II.
To examine
ways in which the bank regulation in Nigeria can be made to play better effects
towards fund mobilization for stability
Nigeria banking system growth and development.
III.
To analysis the construction and short coming
facing bank regulation toward fund mobilization for stability Nigeria banking system growth .
IV.
To determine
and test the effect of some relevant
stability Nigeria banking system variable and factors on the real gross
domestic product (GDP) of Nigeria .
1.8
RESEARCH QUESTION
(i)
Does stability of Nigeria
bank (Banks) engage themselves in
activities that help to develop the bank system?
(ii)
Does the banks regulation have
any effect on the effects of stability of Nigeria bank as they play in the bank system?
(iii)
Does long-term borrowing affect
the effect of stability of Nigeria bank in
the Nigeria Bank system?
(iv)
Is the contribution of financial
funds to banks enough to be felt at well as stimulating the bank system?
1.9
RESEARCH HYPOTHESIS
For the purpose of this study, the hypothesis shall be analyzed in
order to prove their level of rejections and acceptance. These are hypothesis
which were used.
Ho: There is no significant relationship between deposit money
bank and stability Nigeria banking
system development.
Hi: There is significant relationship between deposit money bank
and stability Nigeria banking system
development.
1.6
SIGNIFICANCE OF THE STUDY:
The research project is more important to the bank regulation and
department of the central bank of Nigeria,
various deposit banks in Nigeria and it will also serve as readable
material for further research.
It is necessary for lectures (Teachers) and workers in relation to
this study. It is important to student taking courses in accountant, banking
and finance and economics to have modern approach to the teaching and
understanding the bank regulation in which they will find interest in.
1.10 SCOPE OF THE
STUDY
The research project is designed to cover the effects of bank
regulation in the stability of the bank system. It shall cover both the present
and past period of bank regulation in Nigeria. For easier collection of data
some banks particularly deposit banks will be examined for the research.
1.11 LIMITATIONS
OF THE STUDY
I wish to express my difficulties which I encountered when
collecting information through the questionnaires
The present fuel price increase was a major limited as it made
transportation to these banks and libraries quite difficult.
Besides times and financial constraints, some other factors that
militated against this research projects includes:
1. Lack of books: The scope of
its work was selectively affected because of scarcity of books in the relevant
areas.
2. Attitude constraints: In
the case of the questionnaire, some blatantly refused to collect it to gill
while those that collected tool a lot of time to fill the required answers.
Some fill them haphazardly.
3 Bureautic constraints: Under this limitation concrete attempt made to interview or reach
top official failed because of redtaptism in running official engagements and
procedures in releasing the official or secret of the company.
1.12 DEFINITION
OF TERMS:
i. Financial Institution: it
may be defined as unit or sectors which mobilized sailing and allocate them
into investment projects for this study, I shall take them as those
institutions which gather together financial resources from surpluses sector to
pump into the deficit sectors for stability
Nigeria banking system development.
ii. Modus operand: This means the mode of
operation in the financial institution.
iii.
Financial intermediation: these
are bank regulation which match the deposit requirement of savers with the
investment requirements of the borrowers.
iv.
Savings: it
constitutes that part of income not spent on consumption or expenditure on
goods or services. But for in purpose of this project, saving will be taken as
that part of total income not spent on immediate consumption but is set towards
accentuation of capital for further transactions.
v.
Non-Banks: In this
project, non banks on bank regulation includes insurance companies, investment
companies unit trust, co-operative societies, Bureax De change, primary
mortgage institutions and pension and provident fund all these are non-banks, bank
regulation which help in stability
Nigeria banking system growth of the stability of the Nigeria Bank system.
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