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THE IMPACT OF CENTRAL BANK IN THE DEVELOPMENT OF THE NIGERIA ECONOMY

CHAPTER ONE

INTRODUCTION

 

Background of Study

The central bank of Nigeria CBN was establishing by the central bank of Nigeria act of 1958 and commences operations on the 1st of July 1959.

The principal objectives of the central bank of Nigeria was basically on the issuance of legal tender currency in Nigeria and the central bank of Nigeria is also saddle with the responsibility of maintaining the nations external reserve and value of the legal tender currency in other to safeguard the international value of the nation’s currency.

Some of the functions of the central bank of Nigeria also include promoting monetary stability and a sound financial system. They also serve as the banker and the financial adviser to the federal government on economy decisions. The CBN also serve as bankers to other banks within Nigeria and abroad.

The central bank of Nigeria play a major role in the development of Nigeria economy, the bank has been saddle with various responsibilities to ensure economy development.

The CBN has played a major role in the development of agriculture in the country through the Agricultural Credit Guaranty scheme Fund (ACGSF). The scheme was established by decree no. 20 of 1977, and started operation in April, 1978. Its original share capital and paid-up capital were one hundred million naira and eighty six million and six hundred thousand naira respectively. The federal government of Nigeria holds 60% and the central bank of Nigeria 40% of the shares. The capital based of the scheme was increase to three billion naira in March 2001. The funds guarantees credit fertilities to farmers. The fund is solely managed by the central bank of Nigeria which handles the day to day activities of the scheme.

The central bank of Nigeria has also play a vital role in the development of small and medium enterprises trough the establishment of the small and medium enterprise equity investment scheme. The scheme is a voluntary initiative of the bankers committee approved at its 26th meeting held on the 21st of December 1999. The initiative was in responsive of the federal government concerns and policy measures for the promotion of small and medium enterprises (SMEs) as vehicle for

rapid industrialization, sustainable economy development, poverty alleviation and employment generation.

The scheme require all bank in Nigeria to set aside ten (10) percent of their profit after tax for equity investment and promotion of small and medium scale enterprises. The ten (10) percent of the profit after tax to be set aside annually shall be invested in small and medium scale enterprises as the banking industry contribution to the government effort towards stimulating economy growth, developing local technology and generating employment. The central bank is saddle with the responsibility of ensuring absolute compliance of the banks towards the successful realization of the scheme.

The central bank of Nigeria established the infrastructure finance office on March 01 2010. The mandate of the office is to among others; evolve a sustainable financing frame work to stimulate long-term financing for infrastructural development in the country. The bank has undertaken some steps to improve the sectors as follows;

The bank provided three hundred billion fertility for investment in debentures to be issued by the bank of industry in accordance with section 31 of the CBN act 2007, for investment in power and aviation projects. As part of measures by the CBN to further encourage banks to lend to the real sector of the economy, particularly SMEs, infrastructural and agriculture, the board of directors of the bank has approved the amendment of the prudential guidelines on loan loss provisioning and rule and regulations on margin lending.

We can’t talk about the role the central bank of Nigeria has played on the Nigeria economy without mentioning the impact the CBN bank consolidation. The central bank recent reform (consolidation) that employed certain measure to strengthen the Nigeria banking system by drastically increasing the minimum capital requirement from two million naira to twenty-five billion naira. Through review of policy documents official report and economic information on the banking sector, it became evident the consolidation of banks led to a remarkable reduction of banks from 89 to 25 by merge, acquisition, initial public offer and other means. The bank consolidation has resulted in making banks more efficient and reliable and also, their intermediary potentials have also been revised.

Statement of Problem

The central bank of Nigeria must ensure its streamline the number of project in its entire department in other to ensure adequate funding of those projects. Funding of major project could serve as a limitation to the central bank in actualizing the implementations of it various projects that are expected to enhance the Nigeria economy.

Corruption as we all know is the order of the day in Nigeria, so, for the successful management of funds the central bank must makes sure it does not allow corrupt persons into its system of operations.

The activities of the central bank must not be politicized in any way in other to ensure equity in the disbursement of funds and in taking on special project across the six geo-political zones of the country.

Purpose of Study

The central bank on Nigeria must adhere to it policies in other to enhance economy growth in Nigeria and also in the banking and financial sector of the nation’s economy.

Hence, the fundamental purpose of this study is:

To access the impact of the central bank on the banking industry

To examine the impact of the central bank of the nation’s economy

To identify the benefit of the central bank so far.

To identify the effect of the central bank and other financial institution in sustaining the Nigeria economy

 

Research Questions

This study attempt to provide answers to the following research questions:

 How do you view the central bank in relation to economic development?

 Do you think the central bank policy on the Nigeria economy has had any impact on the economy?

 Has there been any improvement in the country economy ever since the central bank was created

 Are the Nigeria banks strong and trusted enough in spite of the CBN policy on consolidation?

 

 

 In your own view do you think the central bank has affected the nation’s economy positively or negatively?

 How would you rate the impact of the central bank on the manufacturing sector of the economy?

 How does the attitude of Nigerians affect the policies of the central bank?

 

Hypothesis

Looking at the main purpose of this research, it will be reasonable to propose that:

1) Ho: the state of the Nigeria economy has not improve since the establishment of the central bank

 

Hi: the state of the Nigeria economy has improve since the establishment of the central bank

11) Ho: the central bank is not strong and trusted enough to fully implement all its proposed economy policies.

Ho: the central bank is strong and trusted enough to fully implement all its proposed economy policies.

Significance of Study

 The significance of this study is to add to the general body of knowledge, enlighten the general public on the following:

 The impact of central bank on the Nigeria economy

 The impact of the central bank in reducing the poverty level of the nation’s economy

 To bring to light the activities of the central bank in general.

 To show to investors and the general public that the state of banks has undergone a lot of changes through the consolation policy of the central bank.

 

Limitation of study

This research works is basically on the impact of central bank in the development of Nigeria economy. The study will concentrate and will not go beyond the showing the impact of the central bank on the Nigeria economy.

TABLE OF CONTENT:

 

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

1.2     Statement of the Research Problem

1.3     Objectives of the Study

1.4     Significance of the Study

1.5     Research Questions

1.6     Research Hypothesis

1.7     Conceptual and Operational Definition

1.8     Assumptions

1.9     Limitations of the Study

 

CHAPTER TWO

LITERATURE REVIEW

2.1     Sources of Literature

2.2     The Review

2.3     Summary of Literature Review

 

CHAPTER THREE

RESEARCH METHODOLOGY

3.1     Research Method

3.2     Research Design

3.3     Research Sample

3.4     Measuring Instrument

3.5     Data Collection

3.6     Data Analysis

3.7     Expected Result

CHAPTER FOUR

DATA ANALYSIS AND RESULTS

4.1     Data Analysis

4.2     Results

4.3     Discussion

CHAPTER FIVE

SUMMARY AND RECOMMENDATIONS

5.1     Summary

5.2     Recommendations for Further Study

Bibliography

 

HOW TO GET THE FULL PROJECT WORK

 

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

 

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#3000) into our bank Account below, send the following information to

08139462710 or 08137701720

 

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

 

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

 

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

 

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

 

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

 

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

 

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

 

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

 

That you ordered this material shows you have agreed not to copy word-to-word.

 

 

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

 

YOU CAN ALSO CALL:

08068231953, 08168759420

 

 

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

 

 

 

 

 

 

 

Tags:

8 days ago 0 Comments Short URL

THE IMPACT OF CENTRAL BANK IN THE DEVELOPMENT OF THE NIGERIA ECONOMY

CHAPTER ONE

INTRODUCTION

 

Background of Study

The central bank of Nigeria CBN was establishing by the central bank of Nigeria act of 1958 and commences operations on the 1st of July 1959.

The principal objectives of the central bank of Nigeria was basically on the issuance of legal tender currency in Nigeria and the central bank of Nigeria is also saddle with the responsibility of maintaining the nations external reserve and value of the legal tender currency in other to safeguard the international value of the nation’s currency.

Some of the functions of the central bank of Nigeria also include promoting monetary stability and a sound financial system. They also serve as the banker and the financial adviser to the federal government on economy decisions. The CBN also serve as bankers to other banks within Nigeria and abroad.

The central bank of Nigeria play a major role in the development of Nigeria economy, the bank has been saddle with various responsibilities to ensure economy development.

The CBN has played a major role in the development of agriculture in the country through the Agricultural Credit Guaranty scheme Fund (ACGSF). The scheme was established by decree no. 20 of 1977, and started operation in April, 1978. Its original share capital and paid-up capital were one hundred million naira and eighty six million and six hundred thousand naira respectively. The federal government of Nigeria holds 60% and the central bank of Nigeria 40% of the shares. The capital based of the scheme was increase to three billion naira in March 2001. The funds guarantees credit fertilities to farmers. The fund is solely managed by the central bank of Nigeria which handles the day to day activities of the scheme.

The central bank of Nigeria has also play a vital role in the development of small and medium enterprises trough the establishment of the small and medium enterprise equity investment scheme. The scheme is a voluntary initiative of the bankers committee approved at its 26th meeting held on the 21st of December 1999. The initiative was in responsive of the federal government concerns and policy measures for the promotion of small and medium enterprises (SMEs) as vehicle for

rapid industrialization, sustainable economy development, poverty alleviation and employment generation.

The scheme require all bank in Nigeria to set aside ten (10) percent of their profit after tax for equity investment and promotion of small and medium scale enterprises. The ten (10) percent of the profit after tax to be set aside annually shall be invested in small and medium scale enterprises as the banking industry contribution to the government effort towards stimulating economy growth, developing local technology and generating employment. The central bank is saddle with the responsibility of ensuring absolute compliance of the banks towards the successful realization of the scheme.

The central bank of Nigeria established the infrastructure finance office on March 01 2010. The mandate of the office is to among others; evolve a sustainable financing frame work to stimulate long-term financing for infrastructural development in the country. The bank has undertaken some steps to improve the sectors as follows;

The bank provided three hundred billion fertility for investment in debentures to be issued by the bank of industry in accordance with section 31 of the CBN act 2007, for investment in power and aviation projects. As part of measures by the CBN to further encourage banks to lend to the real sector of the economy, particularly SMEs, infrastructural and agriculture, the board of directors of the bank has approved the amendment of the prudential guidelines on loan loss provisioning and rule and regulations on margin lending.

We can’t talk about the role the central bank of Nigeria has played on the Nigeria economy without mentioning the impact the CBN bank consolidation. The central bank recent reform (consolidation) that employed certain measure to strengthen the Nigeria banking system by drastically increasing the minimum capital requirement from two million naira to twenty-five billion naira. Through review of policy documents official report and economic information on the banking sector, it became evident the consolidation of banks led to a remarkable reduction of banks from 89 to 25 by merge, acquisition, initial public offer and other means. The bank consolidation has resulted in making banks more efficient and reliable and also, their intermediary potentials have also been revised.

Statement of Problem

The central bank of Nigeria must ensure its streamline the number of project in its entire department in other to ensure adequate funding of those projects. Funding of major project could serve as a limitation to the central bank in actualizing the implementations of it various projects that are expected to enhance the Nigeria economy.

Corruption as we all know is the order of the day in Nigeria, so, for the successful management of funds the central bank must makes sure it does not allow corrupt persons into its system of operations.

The activities of the central bank must not be politicized in any way in other to ensure equity in the disbursement of funds and in taking on special project across the six geo-political zones of the country.

Purpose of Study

The central bank on Nigeria must adhere to it policies in other to enhance economy growth in Nigeria and also in the banking and financial sector of the nation’s economy.

Hence, the fundamental purpose of this study is:

To access the impact of the central bank on the banking industry

To examine the impact of the central bank of the nation’s economy

To identify the benefit of the central bank so far.

To identify the effect of the central bank and other financial institution in sustaining the Nigeria economy

 

Research Questions

This study attempt to provide answers to the following research questions:

 How do you view the central bank in relation to economic development?

 Do you think the central bank policy on the Nigeria economy has had any impact on the economy?

 Has there been any improvement in the country economy ever since the central bank was created

 Are the Nigeria banks strong and trusted enough in spite of the CBN policy on consolidation?

 

 

 In your own view do you think the central bank has affected the nation’s economy positively or negatively?

 How would you rate the impact of the central bank on the manufacturing sector of the economy?

 How does the attitude of Nigerians affect the policies of the central bank?

 

Hypothesis

Looking at the main purpose of this research, it will be reasonable to propose that:

1) Ho: the state of the Nigeria economy has not improve since the establishment of the central bank

 

Hi: the state of the Nigeria economy has improve since the establishment of the central bank

11) Ho: the central bank is not strong and trusted enough to fully implement all its proposed economy policies.

Ho: the central bank is strong and trusted enough to fully implement all its proposed economy policies.

Significance of Study

 The significance of this study is to add to the general body of knowledge, enlighten the general public on the following:

 The impact of central bank on the Nigeria economy

 The impact of the central bank in reducing the poverty level of the nation’s economy

 To bring to light the activities of the central bank in general.

 To show to investors and the general public that the state of banks has undergone a lot of changes through the consolation policy of the central bank.

 

Limitation of study

This research works is basically on the impact of central bank in the development of Nigeria economy. The study will concentrate and will not go beyond the showing the impact of the central bank on the Nigeria economy.

TABLE OF CONTENT:

 

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

1.2     Statement of the Research Problem

1.3     Objectives of the Study

1.4     Significance of the Study

1.5     Research Questions

1.6     Research Hypothesis

1.7     Conceptual and Operational Definition

1.8     Assumptions

1.9     Limitations of the Study

 

CHAPTER TWO

LITERATURE REVIEW

2.1     Sources of Literature

2.2     The Review

2.3     Summary of Literature Review

 

CHAPTER THREE

RESEARCH METHODOLOGY

3.1     Research Method

3.2     Research Design

3.3     Research Sample

3.4     Measuring Instrument

3.5     Data Collection

3.6     Data Analysis

3.7     Expected Result

CHAPTER FOUR

DATA ANALYSIS AND RESULTS

4.1     Data Analysis

4.2     Results

4.3     Discussion

CHAPTER FIVE

SUMMARY AND RECOMMENDATIONS

5.1     Summary

5.2     Recommendations for Further Study

Bibliography

 

HOW TO GET THE FULL PROJECT WORK

 

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

 

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#10000) into our bank Account below, send the following information to

08139462710 or 08137701720

 

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

 

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

 

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

 

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

 

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

 

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

 

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

 

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

 

That you ordered this material shows you have agreed not to copy word-to-word.

 

 

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

 

YOU CAN ALSO CALL:

08068231953, 08168759420

 

 

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

 

 

 

 

 

 

 

Tags:

8 days ago 0 Comments Short URL

THE IMPACT OF CENTRAL BANK IN THE DEVELOPMENT OF THE NIGERIA ECONOMY

CHAPTER ONE

INTRODUCTION

 

Background of Study

The central bank of Nigeria CBN was establishing by the central bank of Nigeria act of 1958 and commences operations on the 1st of July 1959.

The principal objectives of the central bank of Nigeria was basically on the issuance of legal tender currency in Nigeria and the central bank of Nigeria is also saddle with the responsibility of maintaining the nations external reserve and value of the legal tender currency in other to safeguard the international value of the nation’s currency.

Some of the functions of the central bank of Nigeria also include promoting monetary stability and a sound financial system. They also serve as the banker and the financial adviser to the federal government on economy decisions. The CBN also serve as bankers to other banks within Nigeria and abroad.

The central bank of Nigeria play a major role in the development of Nigeria economy, the bank has been saddle with various responsibilities to ensure economy development.

The CBN has played a major role in the development of agriculture in the country through the Agricultural Credit Guaranty scheme Fund (ACGSF). The scheme was established by decree no. 20 of 1977, and started operation in April, 1978. Its original share capital and paid-up capital were one hundred million naira and eighty six million and six hundred thousand naira respectively. The federal government of Nigeria holds 60% and the central bank of Nigeria 40% of the shares. The capital based of the scheme was increase to three billion naira in March 2001. The funds guarantees credit fertilities to farmers. The fund is solely managed by the central bank of Nigeria which handles the day to day activities of the scheme.

The central bank of Nigeria has also play a vital role in the development of small and medium enterprises trough the establishment of the small and medium enterprise equity investment scheme. The scheme is a voluntary initiative of the bankers committee approved at its 26th meeting held on the 21st of December 1999. The initiative was in responsive of the federal government concerns and policy measures for the promotion of small and medium enterprises (SMEs) as vehicle for

rapid industrialization, sustainable economy development, poverty alleviation and employment generation.

The scheme require all bank in Nigeria to set aside ten (10) percent of their profit after tax for equity investment and promotion of small and medium scale enterprises. The ten (10) percent of the profit after tax to be set aside annually shall be invested in small and medium scale enterprises as the banking industry contribution to the government effort towards stimulating economy growth, developing local technology and generating employment. The central bank is saddle with the responsibility of ensuring absolute compliance of the banks towards the successful realization of the scheme.

The central bank of Nigeria established the infrastructure finance office on March 01 2010. The mandate of the office is to among others; evolve a sustainable financing frame work to stimulate long-term financing for infrastructural development in the country. The bank has undertaken some steps to improve the sectors as follows;

The bank provided three hundred billion fertility for investment in debentures to be issued by the bank of industry in accordance with section 31 of the CBN act 2007, for investment in power and aviation projects. As part of measures by the CBN to further encourage banks to lend to the real sector of the economy, particularly SMEs, infrastructural and agriculture, the board of directors of the bank has approved the amendment of the prudential guidelines on loan loss provisioning and rule and regulations on margin lending.

We can’t talk about the role the central bank of Nigeria has played on the Nigeria economy without mentioning the impact the CBN bank consolidation. The central bank recent reform (consolidation) that employed certain measure to strengthen the Nigeria banking system by drastically increasing the minimum capital requirement from two million naira to twenty-five billion naira. Through review of policy documents official report and economic information on the banking sector, it became evident the consolidation of banks led to a remarkable reduction of banks from 89 to 25 by merge, acquisition, initial public offer and other means. The bank consolidation has resulted in making banks more efficient and reliable and also, their intermediary potentials have also been revised.

Statement of Problem

The central bank of Nigeria must ensure its streamline the number of project in its entire department in other to ensure adequate funding of those projects. Funding of major project could serve as a limitation to the central bank in actualizing the implementations of it various projects that are expected to enhance the Nigeria economy.

Corruption as we all know is the order of the day in Nigeria, so, for the successful management of funds the central bank must makes sure it does not allow corrupt persons into its system of operations.

The activities of the central bank must not be politicized in any way in other to ensure equity in the disbursement of funds and in taking on special project across the six geo-political zones of the country.

Purpose of Study

The central bank on Nigeria must adhere to it policies in other to enhance economy growth in Nigeria and also in the banking and financial sector of the nation’s economy.

Hence, the fundamental purpose of this study is:

To access the impact of the central bank on the banking industry

To examine the impact of the central bank of the nation’s economy

To identify the benefit of the central bank so far.

To identify the effect of the central bank and other financial institution in sustaining the Nigeria economy

 

Research Questions

This study attempt to provide answers to the following research questions:

 How do you view the central bank in relation to economic development?

 Do you think the central bank policy on the Nigeria economy has had any impact on the economy?

 Has there been any improvement in the country economy ever since the central bank was created

 Are the Nigeria banks strong and trusted enough in spite of the CBN policy on consolidation?

 

 

 In your own view do you think the central bank has affected the nation’s economy positively or negatively?

 How would you rate the impact of the central bank on the manufacturing sector of the economy?

 How does the attitude of Nigerians affect the policies of the central bank?

 

Hypothesis

Looking at the main purpose of this research, it will be reasonable to propose that:

1) Ho: the state of the Nigeria economy has not improve since the establishment of the central bank

 

Hi: the state of the Nigeria economy has improve since the establishment of the central bank

11) Ho: the central bank is not strong and trusted enough to fully implement all its proposed economy policies.

Ho: the central bank is strong and trusted enough to fully implement all its proposed economy policies.

Significance of Study

 The significance of this study is to add to the general body of knowledge, enlighten the general public on the following:

 The impact of central bank on the Nigeria economy

 The impact of the central bank in reducing the poverty level of the nation’s economy

 To bring to light the activities of the central bank in general.

 To show to investors and the general public that the state of banks has undergone a lot of changes through the consolation policy of the central bank.

 

Limitation of study

This research works is basically on the impact of central bank in the development of Nigeria economy. The study will concentrate and will not go beyond the showing the impact of the central bank on the Nigeria economy.

TABLE OF CONTENT:

 

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

1.2     Statement of the Research Problem

1.3     Objectives of the Study

1.4     Significance of the Study

1.5     Research Questions

1.6     Research Hypothesis

1.7     Conceptual and Operational Definition

1.8     Assumptions

1.9     Limitations of the Study

 

CHAPTER TWO

LITERATURE REVIEW

2.1     Sources of Literature

2.2     The Review

2.3     Summary of Literature Review

 

CHAPTER THREE

RESEARCH METHODOLOGY

3.1     Research Method

3.2     Research Design

3.3     Research Sample

3.4     Measuring Instrument

3.5     Data Collection

3.6     Data Analysis

3.7     Expected Result

CHAPTER FOUR

DATA ANALYSIS AND RESULTS

4.1     Data Analysis

4.2     Results

4.3     Discussion

CHAPTER FIVE

SUMMARY AND RECOMMENDATIONS

5.1     Summary

5.2     Recommendations for Further Study

Bibliography

 

HOW TO GET THE FULL PROJECT WORK

 

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

 

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08139462710 or 08137701720

 

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

 

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

 

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

 

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

 

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

 

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

 

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

 

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

 

That you ordered this material shows you have agreed not to copy word-to-word.

 

 

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

 

YOU CAN ALSO CALL:

08068231953, 08168759420

 

 

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

 

 

 

 

 

 

 

Tags:

8 days ago 0 Comments Short URL

THE EFFECT OF PRUDENTIAL GUIDELINES ON THE PROFITABILITY OF COMMERCIAL BANKS.


ABSTRACT

          The prudential guidelines for licensed banks which are based on global banking standards, imposed far-reaching requirements in the classification of risk assets and provision for bad and doubtful debts. Since its introduction in November 1990 the implementation of the guidelines has had a profound impact on the operations of banks.

In this project, the researcher has succeeded in identifying the features of the prudential guidelines as well as its impact on published financial statements of commercial banks in Nigeria.

Published financial statement of the banks for the period of 1990 that is, the inception of prudential guidelines were examined and with that of the period 1994-1998 the prudential guidelines period.

Both primary and secondary sources of data were used in the course of the research.

Two hypothesis  were tested using chi-square test.

 

The research work revealed that:-

(1)            The net profit position of commercial banks in Nigeria have been significantly altered since the implementation of the prudential guidelines.

 

(2)            The provision for bad and doubtful debts of commercial banks in Nigeria have significantly increased since the implementation of the prudential guidelines.

The exercise was concluded with suggestion for further study which include:-

(1)            further research be conducted to ascertain the impact of the prudential guidelines on the overall activities of all licensed banks in Nigeria.

(2)            Further research be carried out on the central bank of Nigeria monitoring implementation measures concerning banks and non-banks financial institutions in Nigeria.

 

 

 

TABLE OF CONTENTS

Title page                                                                                         ii

Dedication                                                                                       iii

Acknowledgement                                                                                   iv

Abstract                                                                                           vi

Table of contents                                                                                      viii

CHAPTER ONE

Introduction                                                                                              1

1.1    Statement of problem and objective of

the study                                                                               1

1.2    Rationale of the study                                                           1

1.3    Significance of the study                                                               2

1.4    Definitions of terms                                                              4

CHAPTER TWO                

Review of Related Literature                                                                   6

2.1    Theoretical review                                                                          6

2.2           Empirical review                                                                             17

CHAPTER THREE  

Research design and methodology                                                         21

3.1           Hypothesis                                                                                      21

3.2           Methodology of study                                                                   22

3.3           Limitation of study                                                               24

3.4           Sources of data                                                                      25

CHAPTER FOUR    

4.1    Presentation of data                                                              27

4.2    Analysis of data                                                                     32

4.3    Discussion of the result of analysis                                               42

CHAPTER FIVE      

5.1    Summary of the study                                                                    44

5.2    Conclusion                                                                                      45

5.3    Recommendation                                                                            47

Bibliography                                                                         48

Appendix questionnaire                                                                 52

 

 

 

CHAPTER ONE

 

          INTRODUCTION

1.1 STATEMENT OF THE PROBLEM

Before the introduction of the prudential guidelines, according to CBN circular (1990) some banks were used to declaring huge but unrealized profit, otherwise referred to as “paper profit”.

The following problems will be investigated in this study:

(a)       Did profit figures of the selected commercial banks decrease significantly post prudential guidelines?

(b)      Did provision for bad and doubtful debts increase significantly under prudential guidelines?

 

1.2  RATIONAL OF THE STUDY

According to Olufun (1991) prudential guidelines seeks to infuse sanity into the chaotic banking industry.

Before the introduction of the guidelines most banks were used to declaring what is known as “paper profit “ and off – balance sheet, engagement ceased to form part of the majority commercial banks balance sheet totals. The guide line will assist banks in improving the assessment of their credit performance as well as providing banks supervisors and auditors with enhanced assessment criteria for adequate capital provision for the protection of the banks. Strict observation of prudential rules by banks contribute towards the efficiency of monetary policy.

 

1.3 SIGNIFICANCE OF THE STUDY

Obviously some literature exists on the effects of the CBN 1990 prudential guide lines on the financial statement.

However, the need to up-data such information exists and cannot be over emphasized. Therefore this research was undertaken in other to contribute to the existing literature by up-data it as much as possible.

The major significance of this study is aimed at educating the readers on the impact of the CBN guidelines on the financial statement. It was intended to ensure prudence in credit portfolio classification, provisioning for no-performing facilities. It was necessary to have such prudence to ensure reliability in published accounting information and operating results by financial institutions plus some measures of uniformity in credit portfolio disclosures and interest accruals. According to Eghodaghe (1993) it will help the monetary authorities to know how far the guidelines have achieved it’s primary objective reduction in the declaration of paper profits by banks.

This study will assist the commercial bank in coming up with strategies that will enhance their credit portfolio and reduce loan losses and subsequent provision for bad and doubtful debts. Finally it will provide a good reading material for students of banking and finance, management, practicing bankers including other related professionals and will expose other possible areas of research.

 

 

 

 

1.4 DEFINITION OF TERMS

F B N: First Bank Of Nigeria PLC

U B N: Union Bank of Nigeria PLC

C B N: Central Bank of Nigeria.

PORTFOLIO: According to Odoh (1998) is a list of securities held by and investor. A good portfolio will show a wide spread of investment in order to reduce the risk of loss.

 

BAD AND DOUBTFUL DEBTS:- It is referred to all non performing credit facilities to reflect such specification in the central bank prudential guidelines.

 

Monetary Policy:- A policy which deals with discretionary controls of money supply by monetary authorities (Orji 1998).

 

PRUDENTIAL GUIDELINES: According to Nwankwo (1991).

Prudential guidelines is a body of specific rules or agreed behaviour either imposed by some government or external agency that controls the activities and business of operation of the institutions.

PERFORMING ASSETS: These are those credit on which payment of both principal and interest are up to data in accordance with the agreed repayment terms. (Nigeria Accounting standard Board 1990).

NON-PERFORMING ASSETS:- Credits on which payment of both principal and interest are up to date in accordance with the agreed repayment term.

FINANCIAL STATEMANT:- According to Nigeria Accounting standard Board (1984) is a report which consist of Balance sheet, profit and loss account or income statement, the notes of the account, source and application of funds statement, value added statement and historical financial summary.

PAPER PROFIT :- False profit declaration.

 

 

 

HOW TO GET THE FULL PROJECT WORK

 

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

 

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#3000) into our bank Account below, send the following information to

08139462710 or 08137701720

 

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

 

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

 

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

 

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

 

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

 

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

 

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

 

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

 

That you ordered this material shows you have agreed not to copy word-to-word.

 

 

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

 

YOU CAN ALSO CALL:

08068231953, 08168759420

 

 

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

 

 

 

Tags:

8 days ago 0 Comments Short URL

THE EFFECT OF PRUDENTIAL GUIDELINES ON THE PROFITABILITY OF COMMERCIAL BANKS.


ABSTRACT

          The prudential guidelines for licensed banks which are based on global banking standards, imposed far-reaching requirements in the classification of risk assets and provision for bad and doubtful debts. Since its introduction in November 1990 the implementation of the guidelines has had a profound impact on the operations of banks.

In this project, the researcher has succeeded in identifying the features of the prudential guidelines as well as its impact on published financial statements of commercial banks in Nigeria.

Published financial statement of the banks for the period of 1990 that is, the inception of prudential guidelines were examined and with that of the period 1994-1998 the prudential guidelines period.

Both primary and secondary sources of data were used in the course of the research.

Two hypothesis  were tested using chi-square test.

 

The research work revealed that:-

(1)            The net profit position of commercial banks in Nigeria have been significantly altered since the implementation of the prudential guidelines.

 

(2)            The provision for bad and doubtful debts of commercial banks in Nigeria have significantly increased since the implementation of the prudential guidelines.

The exercise was concluded with suggestion for further study which include:-

(1)            further research be conducted to ascertain the impact of the prudential guidelines on the overall activities of all licensed banks in Nigeria.

(2)            Further research be carried out on the central bank of Nigeria monitoring implementation measures concerning banks and non-banks financial institutions in Nigeria.

 

 

 

TABLE OF CONTENTS

Title page                                                                                         ii

Dedication                                                                                       iii

Acknowledgement                                                                                   iv

Abstract                                                                                           vi

Table of contents                                                                                      viii

CHAPTER ONE

Introduction                                                                                              1

1.1    Statement of problem and objective of

the study                                                                               1

1.2    Rationale of the study                                                           1

1.3    Significance of the study                                                               2

1.4    Definitions of terms                                                              4

CHAPTER TWO                

Review of Related Literature                                                                   6

2.1    Theoretical review                                                                          6

2.2           Empirical review                                                                             17

CHAPTER THREE  

Research design and methodology                                                         21

3.1           Hypothesis                                                                                      21

3.2           Methodology of study                                                                   22

3.3           Limitation of study                                                               24

3.4           Sources of data                                                                      25

CHAPTER FOUR    

4.1    Presentation of data                                                              27

4.2    Analysis of data                                                                     32

4.3    Discussion of the result of analysis                                               42

CHAPTER FIVE      

5.1    Summary of the study                                                                    44

5.2    Conclusion                                                                                      45

5.3    Recommendation                                                                            47

Bibliography                                                                         48

Appendix questionnaire                                                                 52

 

 

 

CHAPTER ONE

 

          INTRODUCTION

1.1 STATEMENT OF THE PROBLEM

Before the introduction of the prudential guidelines, according to CBN circular (1990) some banks were used to declaring huge but unrealized profit, otherwise referred to as “paper profit”.

The following problems will be investigated in this study:

(a)       Did profit figures of the selected commercial banks decrease significantly post prudential guidelines?

(b)      Did provision for bad and doubtful debts increase significantly under prudential guidelines?

 

1.2  RATIONAL OF THE STUDY

According to Olufun (1991) prudential guidelines seeks to infuse sanity into the chaotic banking industry.

Before the introduction of the guidelines most banks were used to declaring what is known as “paper profit “ and off – balance sheet, engagement ceased to form part of the majority commercial banks balance sheet totals. The guide line will assist banks in improving the assessment of their credit performance as well as providing banks supervisors and auditors with enhanced assessment criteria for adequate capital provision for the protection of the banks. Strict observation of prudential rules by banks contribute towards the efficiency of monetary policy.

 

1.3 SIGNIFICANCE OF THE STUDY

Obviously some literature exists on the effects of the CBN 1990 prudential guide lines on the financial statement.

However, the need to up-data such information exists and cannot be over emphasized. Therefore this research was undertaken in other to contribute to the existing literature by up-data it as much as possible.

The major significance of this study is aimed at educating the readers on the impact of the CBN guidelines on the financial statement. It was intended to ensure prudence in credit portfolio classification, provisioning for no-performing facilities. It was necessary to have such prudence to ensure reliability in published accounting information and operating results by financial institutions plus some measures of uniformity in credit portfolio disclosures and interest accruals. According to Eghodaghe (1993) it will help the monetary authorities to know how far the guidelines have achieved it’s primary objective reduction in the declaration of paper profits by banks.

This study will assist the commercial bank in coming up with strategies that will enhance their credit portfolio and reduce loan losses and subsequent provision for bad and doubtful debts. Finally it will provide a good reading material for students of banking and finance, management, practicing bankers including other related professionals and will expose other possible areas of research.

 

 

 

 

1.4 DEFINITION OF TERMS

F B N: First Bank Of Nigeria PLC

U B N: Union Bank of Nigeria PLC

C B N: Central Bank of Nigeria.

PORTFOLIO: According to Odoh (1998) is a list of securities held by and investor. A good portfolio will show a wide spread of investment in order to reduce the risk of loss.

 

BAD AND DOUBTFUL DEBTS:- It is referred to all non performing credit facilities to reflect such specification in the central bank prudential guidelines.

 

Monetary Policy:- A policy which deals with discretionary controls of money supply by monetary authorities (Orji 1998).

 

PRUDENTIAL GUIDELINES: According to Nwankwo (1991).

Prudential guidelines is a body of specific rules or agreed behaviour either imposed by some government or external agency that controls the activities and business of operation of the institutions.

PERFORMING ASSETS: These are those credit on which payment of both principal and interest are up to data in accordance with the agreed repayment terms. (Nigeria Accounting standard Board 1990).

NON-PERFORMING ASSETS:- Credits on which payment of both principal and interest are up to date in accordance with the agreed repayment term.

FINANCIAL STATEMANT:- According to Nigeria Accounting standard Board (1984) is a report which consist of Balance sheet, profit and loss account or income statement, the notes of the account, source and application of funds statement, value added statement and historical financial summary.

PAPER PROFIT :- False profit declaration.

 

 

 

HOW TO GET THE FULL PROJECT WORK

 

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

 

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#10000) into our bank Account below, send the following information to

08139462710 or 08137701720

 

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

 

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

 

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

 

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

 

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

 

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

 

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

 

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

 

That you ordered this material shows you have agreed not to copy word-to-word.

 

 

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

 

YOU CAN ALSO CALL:

08068231953, 08168759420

 

 

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

 

 

 

Tags:

8 days ago 0 Comments Short URL

THE EFFECT OF PRUDENTIAL GUIDELINES ON THE PROFITABILITY OF COMMERCIAL BANKS.


ABSTRACT

          The prudential guidelines for licensed banks which are based on global banking standards, imposed far-reaching requirements in the classification of risk assets and provision for bad and doubtful debts. Since its introduction in November 1990 the implementation of the guidelines has had a profound impact on the operations of banks.

In this project, the researcher has succeeded in identifying the features of the prudential guidelines as well as its impact on published financial statements of commercial banks in Nigeria.

Published financial statement of the banks for the period of 1990 that is, the inception of prudential guidelines were examined and with that of the period 1994-1998 the prudential guidelines period.

Both primary and secondary sources of data were used in the course of the research.

Two hypothesis  were tested using chi-square test.

 

The research work revealed that:-

(1)            The net profit position of commercial banks in Nigeria have been significantly altered since the implementation of the prudential guidelines.

 

(2)            The provision for bad and doubtful debts of commercial banks in Nigeria have significantly increased since the implementation of the prudential guidelines.

The exercise was concluded with suggestion for further study which include:-

(1)            further research be conducted to ascertain the impact of the prudential guidelines on the overall activities of all licensed banks in Nigeria.

(2)            Further research be carried out on the central bank of Nigeria monitoring implementation measures concerning banks and non-banks financial institutions in Nigeria.

 

 

 

TABLE OF CONTENTS

Title page                                                                                         ii

Dedication                                                                                       iii

Acknowledgement                                                                                   iv

Abstract                                                                                           vi

Table of contents                                                                                      viii

CHAPTER ONE

Introduction                                                                                              1

1.1    Statement of problem and objective of

the study                                                                               1

1.2    Rationale of the study                                                           1

1.3    Significance of the study                                                               2

1.4    Definitions of terms                                                              4

CHAPTER TWO                

Review of Related Literature                                                                   6

2.1    Theoretical review                                                                          6

2.2           Empirical review                                                                             17

CHAPTER THREE  

Research design and methodology                                                         21

3.1           Hypothesis                                                                                      21

3.2           Methodology of study                                                                   22

3.3           Limitation of study                                                               24

3.4           Sources of data                                                                      25

CHAPTER FOUR    

4.1    Presentation of data                                                              27

4.2    Analysis of data                                                                     32

4.3    Discussion of the result of analysis                                               42

CHAPTER FIVE      

5.1    Summary of the study                                                                    44

5.2    Conclusion                                                                                      45

5.3    Recommendation                                                                            47

Bibliography                                                                         48

Appendix questionnaire                                                                 52

 

 

 

CHAPTER ONE

 

          INTRODUCTION

1.1 STATEMENT OF THE PROBLEM

Before the introduction of the prudential guidelines, according to CBN circular (1990) some banks were used to declaring huge but unrealized profit, otherwise referred to as “paper profit”.

The following problems will be investigated in this study:

(a)       Did profit figures of the selected commercial banks decrease significantly post prudential guidelines?

(b)      Did provision for bad and doubtful debts increase significantly under prudential guidelines?

 

1.2  RATIONAL OF THE STUDY

According to Olufun (1991) prudential guidelines seeks to infuse sanity into the chaotic banking industry.

Before the introduction of the guidelines most banks were used to declaring what is known as “paper profit “ and off – balance sheet, engagement ceased to form part of the majority commercial banks balance sheet totals. The guide line will assist banks in improving the assessment of their credit performance as well as providing banks supervisors and auditors with enhanced assessment criteria for adequate capital provision for the protection of the banks. Strict observation of prudential rules by banks contribute towards the efficiency of monetary policy.

 

1.3 SIGNIFICANCE OF THE STUDY

Obviously some literature exists on the effects of the CBN 1990 prudential guide lines on the financial statement.

However, the need to up-data such information exists and cannot be over emphasized. Therefore this research was undertaken in other to contribute to the existing literature by up-data it as much as possible.

The major significance of this study is aimed at educating the readers on the impact of the CBN guidelines on the financial statement. It was intended to ensure prudence in credit portfolio classification, provisioning for no-performing facilities. It was necessary to have such prudence to ensure reliability in published accounting information and operating results by financial institutions plus some measures of uniformity in credit portfolio disclosures and interest accruals. According to Eghodaghe (1993) it will help the monetary authorities to know how far the guidelines have achieved it’s primary objective reduction in the declaration of paper profits by banks.

This study will assist the commercial bank in coming up with strategies that will enhance their credit portfolio and reduce loan losses and subsequent provision for bad and doubtful debts. Finally it will provide a good reading material for students of banking and finance, management, practicing bankers including other related professionals and will expose other possible areas of research.

 

 

 

 

1.4 DEFINITION OF TERMS

F B N: First Bank Of Nigeria PLC

U B N: Union Bank of Nigeria PLC

C B N: Central Bank of Nigeria.

PORTFOLIO: According to Odoh (1998) is a list of securities held by and investor. A good portfolio will show a wide spread of investment in order to reduce the risk of loss.

 

BAD AND DOUBTFUL DEBTS:- It is referred to all non performing credit facilities to reflect such specification in the central bank prudential guidelines.

 

Monetary Policy:- A policy which deals with discretionary controls of money supply by monetary authorities (Orji 1998).

 

PRUDENTIAL GUIDELINES: According to Nwankwo (1991).

Prudential guidelines is a body of specific rules or agreed behaviour either imposed by some government or external agency that controls the activities and business of operation of the institutions.

PERFORMING ASSETS: These are those credit on which payment of both principal and interest are up to data in accordance with the agreed repayment terms. (Nigeria Accounting standard Board 1990).

NON-PERFORMING ASSETS:- Credits on which payment of both principal and interest are up to date in accordance with the agreed repayment term.

FINANCIAL STATEMANT:- According to Nigeria Accounting standard Board (1984) is a report which consist of Balance sheet, profit and loss account or income statement, the notes of the account, source and application of funds statement, value added statement and historical financial summary.

PAPER PROFIT :- False profit declaration.

 

 

 

HOW TO GET THE FULL PROJECT WORK

 

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

 

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08139462710 or 08137701720

 

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

 

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

 

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

 

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

 

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

 

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

 

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

 

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

 

That you ordered this material shows you have agreed not to copy word-to-word.

 

 

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

 

YOU CAN ALSO CALL:

08068231953, 08168759420

 

 

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

 

 

 

Tags:

8 days ago 0 Comments Short URL

THE EFFECT DISTRESS RESOLUTION OPTIONS ON THE PROFITABILITY OF COMMERCIAL BANKS IN NIGERIA (A CASE STUDY OF SELECTED COMMERCIAL BANKS)

 

ABSTRACT

This work “The effect of distress resolution options on the profitability of commercial banks has the objective of showing the effect of distress resolution options on the profit growth of commercial banks. The causes of bank distress in Nigeria and the possible prevention strategies or  resolution options of bank distress. The review of related literature was done to give an in depth knowledge of the topic to the researchers. Both primary and secondary sources of data were used by the researchers.

Simple statistical tools like T-test, least square (B) and tables were used to analyse the data collected. The following findings were made; Banks made lower profit during distress period and higher profit during distress period and higher profit after distress period. Meanwhile, banks generally made lower profit during distress period. We recommended that the supervisory arsenals to ensure minimum distress with little or no effect when it occurs.

TABLE OF CONTENT

Title page                                                                                          ii

Approval page                                                                                  iii

Dedication                                                                                         iv

Acknowledgement                                                                                      v

Abstract                                                                                            vi

Table of Content                                                                               vii

CHAPTER ONE

1.0     Introduction                                                                                      1

1.1            Background of the study                                                                   1

1.2            Statement of the problem                                                                  5

1.3            Purpose/Objectives of the study                                                       5

1.4            Research Questions                                                                 6

1.5            Research Hypothesis                                                               6

1.6            Significance of the Study                                                                  7

1.7            Scope, Limitations and Delimitations                                               7

1.8            Definitions of Terms                                                               8

 

CHAPTER TWO                  

2.0     Review of Related Literature                                                   10

2.1            Definition of Distress in Banking Industry                              10

2.2            Symptoms of Distressed Banks in Nigeria                              14

2.3            Causes of Banking Distress                                                     16

2.3.1    Capital Inadequacy                                                                 18

2.3.2    Inept Management                                                                            19

2.3.3    Ownership Structure/Political

Interference in Management of Banks                                               20

2.4            Distress Management and Failure Resolution Option             21

2.5            The Role of Banks in an Economic System                                      30

Reference                                                                                 33

CHAPTER THREE

3.0     Research Design and Methodology                                         35

3.1            Research Design                                                                      35

3.2            Area of Study                                                                          36

3.3            Population                                                                               36

3.4            Sample and Sampling Techniques                                           37

3.5            Instruments of Data Collection                                                         37

3.6            Methods of Data Presentation                                                 38

3.7            Methods of Data Analysis                                                       38

Reference                                                                                 40

CHAPTER FOUR

4.0     Data Presentation and Analysis                                                        41

4.1            Graphical Illustration of Banks Profit                                              43

CHAPTER FIVE                  

5.0     Findings, Recommendation and Conclusion                                     54

5.1            Findings                                                                                  54

5.2            Recommendation                                                                     56

5.3            Conclusion                                                                              58

Bibliography                                                                           59

Appendix                                                                                61

 

 

 

 

PROPOSAL

The topic “The effect of distress resolution options on the profitability of commercial banks in Nigeria.(A case study of selected Commercial banks)

The Topic “The topic The effect of distress resolution options on the profitability of commercial banks in Nigeria” is posed to appraise the effect of distress on the profit growth of commercial banks. It measures the way in which distress affects the profit of commercial banks negatively or otherwise. It also offers resolution options

For effective execution of this work a ten year profit trend of some selected banks will be evaluated. This ten year profit will cover the period of distress and after distress for a proper appraisal of the work.

Meanwhile the profit of these banks will be collected using a primary data source (Annual Report) and secondary sources of information and there primary data will be analysed using the most appropriate statistical tools for an accurate result.

However, there will also be a formulation of hypothesis which is based on the known negative implication of distress. Though, this hypothesis and also there will be a formulation of research questions which will be sample in relative to the objective of the work for the best result.

After all, an inference will be drawn based on the outcome of our statistical test. Based on the results obtained in our tests there will be a recommendation thereof.

The distress in a bank made the banks to have lower profit during distress period and higher profit after distress permit, meanwhile, generally, banks made lower profit during distress period, due to the insufficient cover of losses from the profit generate internally was unable to generate internally positive capital.

The bank or some banks also experience illiquidity or insolvency, this is resulting in a situation whereby the banks could no longer met its liabilities and all there brings about illiquid. These is also insolvent in the bank when the value of its realizable assets is less than the total value of its liabilities.

Furthermore, the inability of a financial institutions to bridge its primary obligation of creating credit and loss of liquidity or the liability of the bank to turn assets into cash to meet any abnormal demand for cash by their customers.

 

 

 

 

 

 

CHAPTER ONE

 

INTRODUCTION

BACKGROUND OF THE STUDY

In any modern economy, the efficient production and exchange of goods and services requires money and bank is the instrument for affecting it. The last few years have been both traumatic and revolutionary for the banking industry. The industry produced the largest number of technically insolvent and under capitalized banks. The magnitude of distress in the nation’s banking industry reached on unprecedented level making it an issue of concern to the government, the regulatory authority, the bankers and the general public.

The Nigeria banking scene was characterized by changes designed to promote banking in the country. The changes may be categorized into phases, but due to the nature of our work we will consider two phases: namely, the era of laissez-fair banking (1894-1952), the era of limited banking regulator (1952-1958). During the first phase, banking industry was monopolized by foreign banks, principally the African banking corporation which was the precursor of the (BBWA) British Bank for West African the present First Bank of Nigeria the Barclays bank DCO (Dominion Colonial and Overseas) the present day Union banks, and the British an French Bank, the for-runner of the present United Bank for Africa. Although discrimination against Nigerians by these banks led to the establishment of some indigenous banks which unfortunately offers litter or no competition to the foreign banks essentially because of their weak capital base or poor managerial capacity. Consequently, all but three of the indigenous banks failed. The survived includes the National Bank of Nigeria established in 1933, the Agbomagbe Bank (now Wema Bank) established 1945 and the Africa Continental Bank 1947.

A commission of inquiry headed by G.D. patron set up in 1948 to investigate the business of banking in Nigeria. Their report led to the enactment of the first banking legislation in Nigeria, the banking ordinance of 1952. The 1952 ordinance laid down the standard and procedure for the conduct of banking business by prescribing the mandatory minimum capital requirement for banks both expatiates and indigenous banks at the tune of ∑100,000 and ∑12,500 respectively and it also introduced regulations to check bank failure. However, all the indigenous bank established in the country during this period also all failed. The bank failures of this era were attributed largely to the monopolistic structure of the banking industry, which allowed the foreign banks to enjoy exclusive patronage from British firms. The indigenous banks that survived was able to make it because of the support they got from their state government.

The distress phenomenon in Nigeria banking industry is of recent origin. The manifestation became discernable with some policy shocks starting in 1988 with the Central Bank of Nigeria (CBN) directive to banks that naira backing for foreign exchange application be lodged with CBN. Thus was followed in 1989 by another directive requiring public sector deposits to be transferred to CBN. These two directives exposed the precious liquidity position of some banks and the distress they have subterraneous harbored. What was thought to be a temporary liquidity problem for few banks soon caught up with  a lot more banks.

It is important to stress in this work that banking system was already in distress by the time NDIC was established. By them, about 7 (seven) banks were known to be technically insolvent. The government at that time, did not embark upon a clearing exercise that would have removed from the system that distressed institutions because it was feared that such an action would lead to loss of public confidence and flight of foreign capital more so there was no deposit insurance institution to expeditiously manage such bank closures. The NDIC was nevertheless required to insure all banks. That means that the corporation has been involved in managing distressed banks even before it could settle down and minister enough resources for this important task.

The intermediating role of banks and their relevance both in the transmission of monetary policies and in the payment system underscore their importance as well as the problem that bank distress at the prevailing dimension in our economy could precipitate. Arising from their intermediation banks generate financial resources ad put these at the disposal of deficit economic growth in the form of increased employment of otherwise idle resources and this in  turn leads to increase output. Therefore, an industry wide insolvency of banks, such as the one experienced in Nigeria, should be expected to retard the economy’s rate of capital formation, reduce its level of employment and output, and ultimately the pace of economic growth.

1.2     STATEMENT OF THE PROBLEM

A serious problem posed by widespred distress among banks is the threat to banking habit and the development of an efficient payment mechanism. The loss of confidence, the after math of the distress that hit the banking sector forced several business to take ferver risks by taking back their fund to well established safe havens dominated by older generation banks.

This research wok is therefore concerned with “Evaluating the impact of bank distress on the profit growth existing of commercial banks. Using ( A vase study of selected Commercial banks).

 

1.3     PURPOSE/OBJECTIVE OF THE STUDY

The main purpose/objective of this study is to have an overview of the effect of bank distress on the profit growth of commercial banks. Investigate into the reasons for bank failure in Nigeria.

Other objectives include:

  1. To evaluate the causes of bank distress in Nigeria. To find out the impact.
  2. To find out the possible prevention strategies or failure resolution options of bank distress.

 

1.4     RESEARCH QUESTIONS

(1)             What are the causes of bank distress?

(2)             What is the impact of bank distress?

(3)             What is the profit growth rate of existing commercial bank during distress.

(4)             What are the effects of bank distress?

(5)             What are the possible solution options to this phenomenon in the banking scene?

 

1.5     RESEARCH HYPOTHESIS

H1:    Distress has no effect on the average profit of commercial

bank

Ho:    Distress has effect on the average profit of commercial

banks.

 

1.6     SIGNIFICANCE OF THE STUDY

This research project will be of importance of the following persons –

  1. New generation banks, which may wish to know the implication of banks distress in the banking industry and how to restore the confidence of the customers and uphold efficient payment mechanism.
  2. Nigeria deposit insurance corporation: The work could be of immense help to NDIC in the area of distress management and prevention strategies. And also in the area of failure resolution option in banking industry.
  3. Students who may wish to know the extent of distress in the banking industry and the trend of distress as it affect the modern banking will also benefit from this work.

 

1.8     SCOPE, LIMITATIONS AND DELIMITATIONS:

While the banking impact distress in Nigeria will theoretically serve as the population of study. The project is designed to appraise the impact of bank distress on the profit growth of Union Bank of Nigeria Plc, First Bank of Nigeria, United Bank for Africa and Guarantee Trust Bank. It will also analyse the trend of these banks profit within a period of 10 years (1992-2001).

 

1.8     DEFINITION OF TERMS

What is Distress? It can be defined as an extreme suffering caused by lack of money or a state of danger, calamity and misfortunate acute poverty.

What is an Evaluation? This can also be defined as form of idea or judgment of something and also to work out something in numerical value.

What is Impact? This can be define as a strong effect or impression to bank. It is also a situation whereby something will be to be press closely or firmly together.

 

 

 

 

HOW TO GET THE FULL PROJECT WORK

 

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

 

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#3000) into our bank Account below, send the following information to

08139462710 or 08137701720

 

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

 

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

 

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

 

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

 

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

 

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

 

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

 

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

 

That you ordered this material shows you have agreed not to copy word-to-word.

 

 

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

 

YOU CAN ALSO CALL:

08068231953, 08168759420

 

 

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

 

 

 

Tags:

8 days ago 0 Comments Short URL

THE EFFECT DISTRESS RESOLUTION OPTIONS ON THE PROFITABILITY OF COMMERCIAL BANKS IN NIGERIA(A CASE STUDY OF SELECTED COMMERCIAL BANKS)

 

ABSTRACT

This work “The effect of distress resolution options on the profitability of commercial banks has the objective of showing the effect of distress resolution options on the profit growth of commercial banks. The causes of bank distress in Nigeria and the possible prevention strategies or  resolution options of bank distress. The review of related literature was done to give an in depth knowledge of the topic to the researchers. Both primary and secondary sources of data were used by the researchers.

Simple statistical tools like T-test, least square (B) and tables were used to analyse the data collected. The following findings were made; Banks made lower profit during distress period and higher profit during distress period and higher profit after distress period. Meanwhile, banks generally made lower profit during distress period. We recommended that the supervisory arsenals to ensure minimum distress with little or no effect when it occurs.

TABLE OF CONTENT

Title page                                                                                          ii

Approval page                                                                                  iii

Dedication                                                                                         iv

Acknowledgement                                                                                      v

Abstract                                                                                            vi

Table of Content                                                                               vii

CHAPTER ONE

1.0     Introduction                                                                                      1

1.1            Background of the study                                                                   1

1.2            Statement of the problem                                                                  5

1.3            Purpose/Objectives of the study                                                       5

1.4            Research Questions                                                                 6

1.5            Research Hypothesis                                                               6

1.6            Significance of the Study                                                                  7

1.7            Scope, Limitations and Delimitations                                               7

1.8            Definitions of Terms                                                               8

 

CHAPTER TWO                  

2.0     Review of Related Literature                                                   10

2.1            Definition of Distress in Banking Industry                              10

2.2            Symptoms of Distressed Banks in Nigeria                              14

2.3            Causes of Banking Distress                                                     16

2.3.1    Capital Inadequacy                                                                 18

2.3.2    Inept Management                                                                            19

2.3.3    Ownership Structure/Political

Interference in Management of Banks                                               20

2.4            Distress Management and Failure Resolution Option             21

2.5            The Role of Banks in an Economic System                                      30

Reference                                                                                 33

CHAPTER THREE

3.0     Research Design and Methodology                                         35

3.1            Research Design                                                                      35

3.2            Area of Study                                                                          36

3.3            Population                                                                               36

3.4            Sample and Sampling Techniques                                           37

3.5            Instruments of Data Collection                                                         37

3.6            Methods of Data Presentation                                                 38

3.7            Methods of Data Analysis                                                       38

Reference                                                                                 40

CHAPTER FOUR

4.0     Data Presentation and Analysis                                                        41

4.1            Graphical Illustration of Banks Profit                                              43

CHAPTER FIVE                  

5.0     Findings, Recommendation and Conclusion                                     54

5.1            Findings                                                                                  54

5.2            Recommendation                                                                     56

5.3            Conclusion                                                                              58

Bibliography                                                                           59

Appendix                                                                                61

 

 

 

 

PROPOSAL

The topic “The effect of distress resolution options on the profitability of commercial banks in Nigeria.(A case study of selected Commercial banks)

The Topic “The topic The effect of distress resolution options on the profitability of commercial banks in Nigeria” is posed to appraise the effect of distress on the profit growth of commercial banks. It measures the way in which distress affects the profit of commercial banks negatively or otherwise. It also offers resolution options

For effective execution of this work a ten year profit trend of some selected banks will be evaluated. This ten year profit will cover the period of distress and after distress for a proper appraisal of the work.

Meanwhile the profit of these banks will be collected using a primary data source (Annual Report) and secondary sources of information and there primary data will be analysed using the most appropriate statistical tools for an accurate result.

However, there will also be a formulation of hypothesis which is based on the known negative implication of distress. Though, this hypothesis and also there will be a formulation of research questions which will be sample in relative to the objective of the work for the best result.

After all, an inference will be drawn based on the outcome of our statistical test. Based on the results obtained in our tests there will be a recommendation thereof.

The distress in a bank made the banks to have lower profit during distress period and higher profit after distress permit, meanwhile, generally, banks made lower profit during distress period, due to the insufficient cover of losses from the profit generate internally was unable to generate internally positive capital.

The bank or some banks also experience illiquidity or insolvency, this is resulting in a situation whereby the banks could no longer met its liabilities and all there brings about illiquid. These is also insolvent in the bank when the value of its realizable assets is less than the total value of its liabilities.

Furthermore, the inability of a financial institutions to bridge its primary obligation of creating credit and loss of liquidity or the liability of the bank to turn assets into cash to meet any abnormal demand for cash by their customers.

 

 

 

 

 

 

CHAPTER ONE

 

INTRODUCTION

BACKGROUND OF THE STUDY

In any modern economy, the efficient production and exchange of goods and services requires money and bank is the instrument for affecting it. The last few years have been both traumatic and revolutionary for the banking industry. The industry produced the largest number of technically insolvent and under capitalized banks. The magnitude of distress in the nation’s banking industry reached on unprecedented level making it an issue of concern to the government, the regulatory authority, the bankers and the general public.

The Nigeria banking scene was characterized by changes designed to promote banking in the country. The changes may be categorized into phases, but due to the nature of our work we will consider two phases: namely, the era of laissez-fair banking (1894-1952), the era of limited banking regulator (1952-1958). During the first phase, banking industry was monopolized by foreign banks, principally the African banking corporation which was the precursor of the (BBWA) British Bank for West African the present First Bank of Nigeria the Barclays bank DCO (Dominion Colonial and Overseas) the present day Union banks, and the British an French Bank, the for-runner of the present United Bank for Africa. Although discrimination against Nigerians by these banks led to the establishment of some indigenous banks which unfortunately offers litter or no competition to the foreign banks essentially because of their weak capital base or poor managerial capacity. Consequently, all but three of the indigenous banks failed. The survived includes the National Bank of Nigeria established in 1933, the Agbomagbe Bank (now Wema Bank) established 1945 and the Africa Continental Bank 1947.

A commission of inquiry headed by G.D. patron set up in 1948 to investigate the business of banking in Nigeria. Their report led to the enactment of the first banking legislation in Nigeria, the banking ordinance of 1952. The 1952 ordinance laid down the standard and procedure for the conduct of banking business by prescribing the mandatory minimum capital requirement for banks both expatiates and indigenous banks at the tune of ∑100,000 and ∑12,500 respectively and it also introduced regulations to check bank failure. However, all the indigenous bank established in the country during this period also all failed. The bank failures of this era were attributed largely to the monopolistic structure of the banking industry, which allowed the foreign banks to enjoy exclusive patronage from British firms. The indigenous banks that survived was able to make it because of the support they got from their state government.

The distress phenomenon in Nigeria banking industry is of recent origin. The manifestation became discernable with some policy shocks starting in 1988 with the Central Bank of Nigeria (CBN) directive to banks that naira backing for foreign exchange application be lodged with CBN. Thus was followed in 1989 by another directive requiring public sector deposits to be transferred to CBN. These two directives exposed the precious liquidity position of some banks and the distress they have subterraneous harbored. What was thought to be a temporary liquidity problem for few banks soon caught up with  a lot more banks.

It is important to stress in this work that banking system was already in distress by the time NDIC was established. By them, about 7 (seven) banks were known to be technically insolvent. The government at that time, did not embark upon a clearing exercise that would have removed from the system that distressed institutions because it was feared that such an action would lead to loss of public confidence and flight of foreign capital more so there was no deposit insurance institution to expeditiously manage such bank closures. The NDIC was nevertheless required to insure all banks. That means that the corporation has been involved in managing distressed banks even before it could settle down and minister enough resources for this important task.

The intermediating role of banks and their relevance both in the transmission of monetary policies and in the payment system underscore their importance as well as the problem that bank distress at the prevailing dimension in our economy could precipitate. Arising from their intermediation banks generate financial resources ad put these at the disposal of deficit economic growth in the form of increased employment of otherwise idle resources and this in  turn leads to increase output. Therefore, an industry wide insolvency of banks, such as the one experienced in Nigeria, should be expected to retard the economy’s rate of capital formation, reduce its level of employment and output, and ultimately the pace of economic growth.

1.2     STATEMENT OF THE PROBLEM

A serious problem posed by widespred distress among banks is the threat to banking habit and the development of an efficient payment mechanism. The loss of confidence, the after math of the distress that hit the banking sector forced several business to take ferver risks by taking back their fund to well established safe havens dominated by older generation banks.

This research wok is therefore concerned with “Evaluating the impact of bank distress on the profit growth existing of commercial banks. Using ( A vase study of selected Commercial banks).

 

1.3     PURPOSE/OBJECTIVE OF THE STUDY

The main purpose/objective of this study is to have an overview of the effect of bank distress on the profit growth of commercial banks. Investigate into the reasons for bank failure in Nigeria.

Other objectives include:

  1. To evaluate the causes of bank distress in Nigeria. To find out the impact.
  2. To find out the possible prevention strategies or failure resolution options of bank distress.

 

1.4     RESEARCH QUESTIONS

(1)             What are the causes of bank distress?

(2)             What is the impact of bank distress?

(3)             What is the profit growth rate of existing commercial bank during distress.

(4)             What are the effects of bank distress?

(5)             What are the possible solution options to this phenomenon in the banking scene?

 

1.5     RESEARCH HYPOTHESIS

H1:    Distress has no effect on the average profit of commercial

bank

Ho:    Distress has effect on the average profit of commercial

banks.

 

1.6     SIGNIFICANCE OF THE STUDY

This research project will be of importance of the following persons –

  1. New generation banks, which may wish to know the implication of banks distress in the banking industry and how to restore the confidence of the customers and uphold efficient payment mechanism.
  2. Nigeria deposit insurance corporation: The work could be of immense help to NDIC in the area of distress management and prevention strategies. And also in the area of failure resolution option in banking industry.
  3. Students who may wish to know the extent of distress in the banking industry and the trend of distress as it affect the modern banking will also benefit from this work.

 

1.8     SCOPE, LIMITATIONS AND DELIMITATIONS:

While the banking impact distress in Nigeria will theoretically serve as the population of study. The project is designed to appraise the impact of bank distress on the profit growth of Union Bank of Nigeria Plc, First Bank of Nigeria, United Bank for Africa and Guarantee Trust Bank. It will also analyse the trend of these banks profit within a period of 10 years (1992-2001).

 

1.8     DEFINITION OF TERMS

What is Distress? It can be defined as an extreme suffering caused by lack of money or a state of danger, calamity and misfortunate acute poverty.

What is an Evaluation? This can also be defined as form of idea or judgment of something and also to work out something in numerical value.

What is Impact? This can be define as a strong effect or impression to bank. It is also a situation whereby something will be to be press closely or firmly together.

 

 

 

 

HOW TO GET THE FULL PROJECT WORK

 

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

 

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#10000) into our bank Account below, send the following information to

08139462710 or 08137701720

 

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

 

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

 

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

 

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

 

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

 

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

 

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

 

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

 

That you ordered this material shows you have agreed not to copy word-to-word.

 

 

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

 

YOU CAN ALSO CALL:

08068231953, 08168759420

 

 

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

 

 

 

Tags:

8 days ago 0 Comments Short URL

THE EFFECT DISTRESS RESOLUTION OPTIONS ON THE PROFITABILITY OF COMMERCIAL BANKS IN NIGERIA (A CASE STUDY OF SELECTED COMMERCIAL BANKS)

 

ABSTRACT

This work “The effect of distress resolution options on the profitability of commercial banks has the objective of showing the effect of distress resolution options on the profit growth of commercial banks. The causes of bank distress in Nigeria and the possible prevention strategies or  resolution options of bank distress. The review of related literature was done to give an in depth knowledge of the topic to the researchers. Both primary and secondary sources of data were used by the researchers.

Simple statistical tools like T-test, least square (B) and tables were used to analyse the data collected. The following findings were made; Banks made lower profit during distress period and higher profit during distress period and higher profit after distress period. Meanwhile, banks generally made lower profit during distress period. We recommended that the supervisory arsenals to ensure minimum distress with little or no effect when it occurs.

TABLE OF CONTENT

Title page                                                                                          ii

Approval page                                                                                  iii

Dedication                                                                                         iv

Acknowledgement                                                                                      v

Abstract                                                                                            vi

Table of Content                                                                               vii

CHAPTER ONE

1.0     Introduction                                                                                      1

1.1            Background of the study                                                                   1

1.2            Statement of the problem                                                                  5

1.3            Purpose/Objectives of the study                                                       5

1.4            Research Questions                                                                 6

1.5            Research Hypothesis                                                               6

1.6            Significance of the Study                                                                  7

1.7            Scope, Limitations and Delimitations                                               7

1.8            Definitions of Terms                                                               8

 

CHAPTER TWO                  

2.0     Review of Related Literature                                                   10

2.1            Definition of Distress in Banking Industry                              10

2.2            Symptoms of Distressed Banks in Nigeria                              14

2.3            Causes of Banking Distress                                                     16

2.3.1    Capital Inadequacy                                                                 18

2.3.2    Inept Management                                                                            19

2.3.3    Ownership Structure/Political

Interference in Management of Banks                                               20

2.4            Distress Management and Failure Resolution Option             21

2.5            The Role of Banks in an Economic System                                      30

Reference                                                                                 33

CHAPTER THREE

3.0     Research Design and Methodology                                         35

3.1            Research Design                                                                      35

3.2            Area of Study                                                                          36

3.3            Population                                                                               36

3.4            Sample and Sampling Techniques                                           37

3.5            Instruments of Data Collection                                                         37

3.6            Methods of Data Presentation                                                 38

3.7            Methods of Data Analysis                                                       38

Reference                                                                                 40

CHAPTER FOUR

4.0     Data Presentation and Analysis                                                        41

4.1            Graphical Illustration of Banks Profit                                              43

CHAPTER FIVE                  

5.0     Findings, Recommendation and Conclusion                                     54

5.1            Findings                                                                                  54

5.2            Recommendation                                                                     56

5.3            Conclusion                                                                              58

Bibliography                                                                           59

Appendix                                                                                61

 

 

 

 

PROPOSAL

The topic “The effect of distress resolution options on the profitability of commercial banks in Nigeria.(A case study of selected Commercial banks)

The Topic “The topic The effect of distress resolution options on the profitability of commercial banks in Nigeria” is posed to appraise the effect of distress on the profit growth of commercial banks. It measures the way in which distress affects the profit of commercial banks negatively or otherwise. It also offers resolution options

For effective execution of this work a ten year profit trend of some selected banks will be evaluated. This ten year profit will cover the period of distress and after distress for a proper appraisal of the work.

Meanwhile the profit of these banks will be collected using a primary data source (Annual Report) and secondary sources of information and there primary data will be analysed using the most appropriate statistical tools for an accurate result.

However, there will also be a formulation of hypothesis which is based on the known negative implication of distress. Though, this hypothesis and also there will be a formulation of research questions which will be sample in relative to the objective of the work for the best result.

After all, an inference will be drawn based on the outcome of our statistical test. Based on the results obtained in our tests there will be a recommendation thereof.

The distress in a bank made the banks to have lower profit during distress period and higher profit after distress permit, meanwhile, generally, banks made lower profit during distress period, due to the insufficient cover of losses from the profit generate internally was unable to generate internally positive capital.

The bank or some banks also experience illiquidity or insolvency, this is resulting in a situation whereby the banks could no longer met its liabilities and all there brings about illiquid. These is also insolvent in the bank when the value of its realizable assets is less than the total value of its liabilities.

Furthermore, the inability of a financial institutions to bridge its primary obligation of creating credit and loss of liquidity or the liability of the bank to turn assets into cash to meet any abnormal demand for cash by their customers.

 

 

 

 

 

 

CHAPTER ONE

 

INTRODUCTION

BACKGROUND OF THE STUDY

In any modern economy, the efficient production and exchange of goods and services requires money and bank is the instrument for affecting it. The last few years have been both traumatic and revolutionary for the banking industry. The industry produced the largest number of technically insolvent and under capitalized banks. The magnitude of distress in the nation’s banking industry reached on unprecedented level making it an issue of concern to the government, the regulatory authority, the bankers and the general public.

The Nigeria banking scene was characterized by changes designed to promote banking in the country. The changes may be categorized into phases, but due to the nature of our work we will consider two phases: namely, the era of laissez-fair banking (1894-1952), the era of limited banking regulator (1952-1958). During the first phase, banking industry was monopolized by foreign banks, principally the African banking corporation which was the precursor of the (BBWA) British Bank for West African the present First Bank of Nigeria the Barclays bank DCO (Dominion Colonial and Overseas) the present day Union banks, and the British an French Bank, the for-runner of the present United Bank for Africa. Although discrimination against Nigerians by these banks led to the establishment of some indigenous banks which unfortunately offers litter or no competition to the foreign banks essentially because of their weak capital base or poor managerial capacity. Consequently, all but three of the indigenous banks failed. The survived includes the National Bank of Nigeria established in 1933, the Agbomagbe Bank (now Wema Bank) established 1945 and the Africa Continental Bank 1947.

A commission of inquiry headed by G.D. patron set up in 1948 to investigate the business of banking in Nigeria. Their report led to the enactment of the first banking legislation in Nigeria, the banking ordinance of 1952. The 1952 ordinance laid down the standard and procedure for the conduct of banking business by prescribing the mandatory minimum capital requirement for banks both expatiates and indigenous banks at the tune of ∑100,000 and ∑12,500 respectively and it also introduced regulations to check bank failure. However, all the indigenous bank established in the country during this period also all failed. The bank failures of this era were attributed largely to the monopolistic structure of the banking industry, which allowed the foreign banks to enjoy exclusive patronage from British firms. The indigenous banks that survived was able to make it because of the support they got from their state government.

The distress phenomenon in Nigeria banking industry is of recent origin. The manifestation became discernable with some policy shocks starting in 1988 with the Central Bank of Nigeria (CBN) directive to banks that naira backing for foreign exchange application be lodged with CBN. Thus was followed in 1989 by another directive requiring public sector deposits to be transferred to CBN. These two directives exposed the precious liquidity position of some banks and the distress they have subterraneous harbored. What was thought to be a temporary liquidity problem for few banks soon caught up with  a lot more banks.

It is important to stress in this work that banking system was already in distress by the time NDIC was established. By them, about 7 (seven) banks were known to be technically insolvent. The government at that time, did not embark upon a clearing exercise that would have removed from the system that distressed institutions because it was feared that such an action would lead to loss of public confidence and flight of foreign capital more so there was no deposit insurance institution to expeditiously manage such bank closures. The NDIC was nevertheless required to insure all banks. That means that the corporation has been involved in managing distressed banks even before it could settle down and minister enough resources for this important task.

The intermediating role of banks and their relevance both in the transmission of monetary policies and in the payment system underscore their importance as well as the problem that bank distress at the prevailing dimension in our economy could precipitate. Arising from their intermediation banks generate financial resources ad put these at the disposal of deficit economic growth in the form of increased employment of otherwise idle resources and this in  turn leads to increase output. Therefore, an industry wide insolvency of banks, such as the one experienced in Nigeria, should be expected to retard the economy’s rate of capital formation, reduce its level of employment and output, and ultimately the pace of economic growth.

1.2     STATEMENT OF THE PROBLEM

A serious problem posed by widespred distress among banks is the threat to banking habit and the development of an efficient payment mechanism. The loss of confidence, the after math of the distress that hit the banking sector forced several business to take ferver risks by taking back their fund to well established safe havens dominated by older generation banks.

This research wok is therefore concerned with “Evaluating the impact of bank distress on the profit growth existing of commercial banks. Using ( A vase study of selected Commercial banks).

 

1.3     PURPOSE/OBJECTIVE OF THE STUDY

The main purpose/objective of this study is to have an overview of the effect of bank distress on the profit growth of commercial banks. Investigate into the reasons for bank failure in Nigeria.

Other objectives include:

  1. To evaluate the causes of bank distress in Nigeria. To find out the impact.
  2. To find out the possible prevention strategies or failure resolution options of bank distress.

 

1.4     RESEARCH QUESTIONS

(1)             What are the causes of bank distress?

(2)             What is the impact of bank distress?

(3)             What is the profit growth rate of existing commercial bank during distress.

(4)             What are the effects of bank distress?

(5)             What are the possible solution options to this phenomenon in the banking scene?

 

1.5     RESEARCH HYPOTHESIS

H1:    Distress has no effect on the average profit of commercial

bank

Ho:    Distress has effect on the average profit of commercial

banks.

 

1.6     SIGNIFICANCE OF THE STUDY

This research project will be of importance of the following persons –

  1. New generation banks, which may wish to know the implication of banks distress in the banking industry and how to restore the confidence of the customers and uphold efficient payment mechanism.
  2. Nigeria deposit insurance corporation: The work could be of immense help to NDIC in the area of distress management and prevention strategies. And also in the area of failure resolution option in banking industry.
  3. Students who may wish to know the extent of distress in the banking industry and the trend of distress as it affect the modern banking will also benefit from this work.

 

1.8     SCOPE, LIMITATIONS AND DELIMITATIONS:

While the banking impact distress in Nigeria will theoretically serve as the population of study. The project is designed to appraise the impact of bank distress on the profit growth of Union Bank of Nigeria Plc, First Bank of Nigeria, United Bank for Africa and Guarantee Trust Bank. It will also analyse the trend of these banks profit within a period of 10 years (1992-2001).

 

1.8     DEFINITION OF TERMS

What is Distress? It can be defined as an extreme suffering caused by lack of money or a state of danger, calamity and misfortunate acute poverty.

What is an Evaluation? This can also be defined as form of idea or judgment of something and also to work out something in numerical value.

What is Impact? This can be define as a strong effect or impression to bank. It is also a situation whereby something will be to be press closely or firmly together.

 

 

 

 

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EFFECTS OF BANK DISTRESS ON THE SAVING HABITS OF THE RURAL DWELLERS

ABSTRACT

 

This research work examined the “Effect of Bank distress on the saving habit of the rural dwellers”  it investigated the causes and characteristic of bank distress in the Nigerian economy.

Many related literature were reviewed as the researchers collected data for this work. In remote communities where banking habit was poorly developed the exercise of changing bank notes in 1984 forced people to travel scores of mills to change their money and also made them realize that they need banks around incessant call for extension of bank branches to their areas. The effect of bank distress on the economy on the other hand included the erosion of public confidence mostly to the rural dwellers in putting their money in the banks.

TABLE OF CONTENTS

 

Title page

Approval page

Dedication

Acknowledgement

Abstract

Table of content

 

CHAPTER ONE

1.0           Introduction

1.1    Background of study

1.2           Statement of problems

1.3           Purpose of study

1.4           Research question

1.5           Significance of the study

1.6           Delimitation scope and limitation

1.7           Definition of terms

CHAPTER TWO

2.0           Review of related literature

2.1    Meaning and characteristic of distress

2.2    Cause of bank distress in Nigeria

2.3           Factors hindering smooth saving habits of the rural dwellers,

 

CHAPTER THREE

3.0    Research designs and methodology

3.1           Sources of data

3.2           Location of data

3.3           Method of investigation

 

CHAPTER FOUR

3.0           Summary and finding

 

CHAPTER FIVE

5.0    Recommendation

5.1    Conclusion

References and bibliography

 

 

CHAPTER ONE

 

1.1    BACKGROUND OF STUDY

A bank can be defined as an organization whose principal operation are concerned with the accumulation of temporarily idle money of the general public from the purpose of advancing to others for expenditures.

John page defined a bank “A corporation or person(s) who accept money on current account, pays cheques on such account on demand and collects cheque for customers”

Oxfords advanced learners Dictionary define a bank as an organization or a place that provides a financial services or a place where something is stored ready for use.

The establishment of modern banking in Nigeria dates back to the colonial when the African Banking corporation was formed in 1892 to distribute currency notes of Bank of England for the British Treasury subsequent developments were encouraged by colonial trade. In the bid to address the credit needs of indigenous enterprises, Nigerian late ventured into the banking business, initially through private individual initiatives and later through deliberate government policy.

The problem of distress in the financial sector, including outright bank failure, has been observed in Nigeria as back as 1930 when the first bank failure was reported indeed, between 1930 and 1958 when the central bank of Nigeria (CBN) was establishment over 21 bank failure were recorded.

However, the degree of intensity and scope of the distress has never been as serious as has been observed since June 1989 when government directive to withdraw deposits of government and other public sector institution from bank to the CBN exposed the weak financial condition of most financial institution and the severity of problem has progressively here used.

The distressed condition has been traced to a wide range of causes, some of which are listed on literature review. Eventually, when distress came to into the scene, fears of loosing fund to the banks influenced negatively, the banking habit of the rural dwellers.

 

 

 

1.2    STATEMENT OF PROBLEMS

With the wave of distress spreading in the finance companies, community banks and primary mortgage institutions, a total of 24 banks were distressed in 1933, ad against 10 in 1992, 31 finance house were in default of malures obligations 456 complaints against 156 finance companies for non resumption of matured funds, however, total assets and liabilities of 395 finance firms stood at N13.38 billion in 1993 as against N2.44 billion reported for the proceeding year (1992).

 

THE SATIATION WAS ATTRIBUTED TO THE FOLLOWINGS 

  1. Prevailing economic recession, policy induced hock

poor and detonating asset quality arising from large portfolio of non-performing credits non-maintenance of assets and liability.

2.           Poor management bothering on sharp practice and lack of experience which is the most serious problem, associated with bank distress in the rural area.

3.           Ineffective, inefficient and poor performance of the financial sector on the role of promoting and supporting economic development in the rural areas.

The problem in focus above, triggered off the interest of the researchers to carry out study in the area.

 

1.3    PURPOSE OF STUDY

Under the purpose of study, which in other words, is the objectives of study the researcher will try to ascertain the following

  1. What bank distress is all about
  2. How it has affected the banking habit of the rural dwellers.
  3. The causes of bank distress.
  4. To enlighten the rural dwellers on the need you putting their money in banks.
  5. To ascertain the percentage of commercial banks is the rural areas.
  6. To encourage and ensure effective rural savings.

 

 

1.4    RESEARCH QUESTION

1.      What is bank distress

2.      What are the causes of bank distress

3.      How does bank distress affects the saving habit of the rural dwellers?

4.      What can be done to prevent bank distress?

5.      How should rural dwellers be enlightened on the need of putting money in bank.

 

1.5    SIGNIFICANCE OF STUDY

In discussing the effect of bank distress on the saving habit of the rural dwellers the researcher have some important beneficiaries which include the following:

a.       THE BANKING SECTION:- From the work the management should know  the damages, distress in causing the conceptions of the  bank dwellers towards savings in the bank. This will make the management seat up an enunciate managerial policies that are capable phasing out cases of distress in banks.

 

b.      THE RURAL DWELLERS: Their benefit is indirect, it doesn’t appeal to them directly since distress is the effects on their saving habit.

Distress in bank will be eradicated to enable bank flourish well, so it is that benefit (such as rehabilitating the management so as to restore confidence and safely and area) that the banks get that will influence them directly. They will see it themselves, people in the rural area will save their money in banks and get them anytime they want. They will allay the fear in the rural dweller and energies their spirit of putting their money in banks. This is a result of powerful recommendations and suggestion made in this work.

c.       ACADEMIC INSTITUTION:- This work is relevant to the institution and the students in the field of management sciences. Especially those in banking and finance in the sense that it will improve their literate review purposes, some copies of this work will be kept in the institution library for subsequent researchers for further research references.

d.      THE GENERAL PUBLIC:- It is also significant to everybody these include mostly the investors, pubic libraries and research institution, where copies of this work will be kept and the general public can go and get copies, read and now known what is going on at the rural areas pertaining their banking habits.

e.       INVESTOR: The study exonerates fears the investors have from saving in the bank due for distress because the investors would not like to dump the little they have with the bank.

f.       PUBLIC LIBRARIES:- This work will increase their stock of books for research purposes by researcher.

g.       RESEARCH INSTITUTES:- It is significant to the researcher institutes, because they keep those research work for further research by researchers.

1.6    DELIMITATION SCOPE AND LIMITATIONS

Delimitation: This work is delimited to the effects of distress to the general economy the use of primary data questionnaire method and interview methods are also delimited in this project work.

SCOPE: This study covers the effects of bank distress in the saving habit of the rural dwellers.

LIMITATIONS: The following problems, were encountered during the project work.

a.       TIME FACTOR: No time is specifically given for the term paper work, one will be attending lectures and at the same time researching from the work there is not time to go to the library. Achievers etc for the project work or even market survey as the need may be.

b.      LACK OF RESEARCH FACTORIES:- lack of text books or reference materials which contains the effect of have distress on the saving habits of the rural dwellers were hardly seen or found which made it difficult for the researcher to get enough facts.

c.       SHORT OF FINANCE:- back of money or financial  problem at time limit researcher from group to the villages to get facts as a man be needed for the works.

1.7    DEFINITION OF TERMS

1.      Collateral:- Stocks or bound pledged as security for repayment of a loan.

2.      Unscrupulous not doing guided by coincidence not held back from dong wrong.

3.      Amity: Friendship is friendly relations between persons or countries.

4.      Financial intermediaries: Like finance companies primary mortgages institution etc who serve as a go-between o. link in the financial institutions.

5.      Malase: feeling of badly discomfort, but without clear signs of a particular illness.

6.      Parlance: use or choice of  words, ways of speaking.

7.      Default: Fail to p[perform a duty or to pay a debt.

8.      Allay: make something (e.g) pain, trouble, excitement fears less.

 

 

HOW TO GET THE FULL PROJECT WORK

 

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

 

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#3000) into our bank Account below, send the following information to

08139462710 or 08137701720

 

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

 

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

 

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

 

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

 

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

 

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

 

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

 

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

 

That you ordered this material shows you have agreed not to copy word-to-word.

 

 

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

 

YOU CAN ALSO CALL:

08068231953, 08168759420

 

 

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

 

 

 

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8 days ago 0 Comments Short URL