TABLE OF CONTENT
Title
Page
Certification
Dedication
Acknowledgment
Table
of content
CHAPTER ONE
Introduction
1.1 background of the study
1.2 statement of the problem
1.3 research question
1.4 purpose of the study
1.5 scope of the study
1.6 limitation of the study
1.7 significance of terms
CHAPTER TWO
Literature Review
2.1 Deregulation and the banking industries
2.2 Historical background of banking industries in
Nigeria
2.3 The Nigeria banking industries
2.4 Types of banking
2.5 Some aspect of Nigeria regulation framework
2.6 Credit control under deregulation
CHAPTER THREE
Research Methodology
3.1 Research
design
3.2 Area of study
3.3 Population
5.4
Sample and sampling procedures
5.6 Method of data analysis
3.7
Method of data collection
CHAPTER FOUR
Data
Analysis and Interpretation
4.0 Data analysis
4.1
Introduction
4.2 Interpretation and analysis of data
4.3 Test of hypothesis
4.4 Summary of finding
CHAPTER FIVE
Summary,
Conclusion and Recommendation
5.1 Summary
5.2 Conclusion
5.3 Recommendation
References
Appendix
CHAPTER ONE
1.0 INTRODUCTION
In
July 2004, the new governor of the central bank of Nigeria (CBN), professor
Charles Soludo announced that the new minimum capitalization for bank in
Nigeria is N25 billion (approximately)
all bank are expected to comply by this direction by December 2005.
This
announcement struck the banking section like a storm on a dark night. And its
has left in its wake a heated debate on its appropriateness in relation to
Nigeria banks and the current state of the economy. It is undeniable that this
announcement brought with it a number of consequences.
As
a result of the central bank of Nigeria (CBN) policy, banks across the nation
have to strive for survival. Along the way, some banks liquidated, while some
were acquired and others got merged.
Banking
as a discipline and a profession has assumed a multi-skilled dimension due to
its perceived dynamism in the word economic and social development.
In
Nigeria, first bank ordinance was enacted in 1952 this to part an end to the
mass features of banks witnessed between 1892 when African banking corporation
(now first bank Nigeria) debated as the first established banking industry has
become the most regulated sector despite
the much – vaunted deregulation now prevalent in many countries of the word and
Nigeria inclusion.
The
intercontinental bank plc is our focus under this study.
1.1 BACKGROUND
OF THE STUDY:
Given
the magnitude of banks problems which confronted Nigeria banking industries
especially since the early 1990s, stagnant banks growth inadequate cash to meet
their current obligation, giving loan to uncertified persons, militating the
right of their customers (interest) and not fiduciary in managing the affairs
of their customers, the importance of banking industries reform become
paramount.
Therefore,
there was need to remove policy distortion which had stalled banks progress. In
particular, policy makers began to recognition more visibly the adverse effect
of exclusive reliance in the set of policy instrument being enforced through cumbersome
administrative control and regulation. It was rightly considered that failure
to initiate reforms which would stress deregulation. If existing policy
instrument would seriously jeopardize the long term growth and development
prospects of Nigeria banks
Bank
deregulation which involves appropriate realignment in capital structure,
management, factors determine granting of the
public and interest rate on loan policies (Base lending rate) was viewed
as a tool for reducing undue Nigeria intervention in banking activities and
providing relevant structure of incentives that would put the banking
industries on the path of recovery and growth.
1.2 STATEMENT
OF THE PROBLEM
The
problem of this study is that despite deregulation in banking sector, banking
in Nigeria are still to ascertain some objective of the deregulation, like
levity handling of affairs of their customer, giving loan to uncertified person
automated teller machine fraudulent act (ATM) and how there will be talked with
aim of develop Nigeria economy. Hence, the watch word of this study is to
pinpoint the factors that initiating the hall mark of the deregulation in
banking industries not yet to be achieve.
1.3
RESEARCH QUESTION
For
the purpose of this study five (5) hypothesis are stated and tested.
1. Is
it the aims of deregulation in banking industry is to develop Nigeria economy?
2. Does
deregulation really contributed to the development of Nigeria economy
3. What
is the problem militating against deregulation in banking industries?
4. Has
deregulation in Banking Industries concern loan granted to individuals and
corporate body?
5. Do
benefit from this deregulation?
RESEARCH
HYPOTHESIS
The above questions are required to test the
following hypothesis.
Ho: there
is no significant relationship between and development of Nigeria Economy and
deregulation in banking industries.
Hi: there
is no significant relationship between the development of Nigeria economy and
deregulation in banking industries.
1.4 THE PURPOSE OF THE STUDY
The study is
carried out to reveal the effect of deregulation in banking industries in
Nigeria economy. It’s also made it possible to know the effect that banking
institute is having no economy whether it is development effect or its economy
still stagnant. It bring rise in national income of Nigerians between 1930 and
1948, there was crying for more banks on part of Nigeria to complete with the expatriates
in banking operation business.
Another reason
for the massive banking development was purely economic.
The banking boom
of 1947 to 1952 concealed with the period of activity of nationalists movement
in Nigeria. They made the call that the major reason for under development of
the country was her economy that was subjected to the British economic. It had
the businessman to think of business in banking so as to replace the monopoly
of the expatriates in the banking industries.
1.5 THE SCOPE OF THE STUDY
The research
work of this study includes the primary information from bank (intercontinental
bank plc, Oshogbo, Igbona branch), the senior and junior workers of
intercontinental bank plc Oshogbo, Igbona branch, coupled with the discussion
on the underlying factors of the system of account, liquidity, profitability
and visibility factors that can help economy of Nigeria to be developed, but most
of the required data were restricted to certain point. The study will also
describe the function and achievement of Nigeria banks after the deregulation
of the banking industries.
1.6 LIMITATION OF THE STUDY
In the course of
the study, we were faced with a lot of problems, which takes long time together
the information required.
It took a lot of
time before we can get co-operation of the staff in the banks.
It
also takes a lot of time and stress to convey them that the information required;
it’s not to spy out secret of the business.
They
felt reluctant to respond and ignored certain question in the process.
The
financial and time factor are also impeded the process.
1.7 SIGNIFICANCE OF THE STUDY
In the aim of
this study, the research work attempt to highlight the effect of deregulation
in Banking Industries and how far it has been affecting their operations.
1.8 DEFINITION OF TERMS
a. Monetary Policy: - is a major economic stabilization weapon
which involves measure designed to regulate and control the volume, cost and
availability and direction of money.
b. Economy: - this
is the financial unit or state of a country.
c. Banking Ordinance: - was the first law banking system. It
defined banking business also provide license for the bank they can start
business operation.
d. Bureau de change: - is
non- financial institution but it has been classified to deregulation foreign
exchange also it’s to provide money or currency to small users.
e. Indigenous Banking: - are bank owned by the
Nigerian citizen. It was started with the National bank in 1933 and the bank
was characterized by unhealthy competition.
f. Bank Liquidity: - this refers to the cost reserves or
balance held by banks to make-up with their customer requirement.
g. Liquidation means
the term used to signify the process of winding up a company and thereby
bringing to an end.
h. Profitability: - this is money gained on a business or
advantages gained for some action lastly it are the different between cost of
purpose or production and selling prize.
i. Convenience: - Bank services should be provide to
customer without much regour or difficulties in other words, customers should
enjoy banking services with ease.
j. Dealing Member: - This comprise those individual firms or
corporate bodies licensed by the council of the exchange to stock, shares and
others securities.
k. Promissory Note Is
an unconditional promise in writing made by one person to another signed by the
makers, engaging to pay on demand or after fixed or determinable future time a
sum certain in money, to or to the order of a specified person or to bearer.
l. Role: - It
is the importance or usefulness of something
m. Financial Institution: - This is the institution
that use its fund chiefly to purchase financial asset deposit, loans, bonds and
debentures as opposed to tangible assets.
n. Investment:- this is the purchase of security that offers
safety of principal and satisfactory equal to risk.
o. Securities: - This is an income validity documentary
by which the claim of holder is specialized property is secured.
p. Financial Intermediaries: - These are the people
that act in the business transaction between the financial institution and the
customers.
q. Capital: - This
is the amount of money that is used to commence a business.
r. Industries Financing: - this is the raising of
capital for farm through bank issues of loans and advance for the purpose of
working capital expansion.
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