Select Currency
Translate this page

RECAPITALIZATION POLICY AND THE BANKS PERFORMANCE IN NIGERIA (1985 – 2010)

Format: MS WORD  |  Chapter: 1-5  |  Pages: 76  |  709 Users found this project useful  |  Price NGN5,000

  DOWNLOAD THE COMPLETE PROJECT

RECAPITALIZATION POLICY AND THE BANKS PERFORMANCE IN NIGERIA (1985 – 2010)

 

ABSTRACT

The objective of this study is to assess the recapitalization policy and the banks performance in Nigeria, also to know the history of recapitalization policy and how it has fare over the years, and the benefit of this recapitalization to Nigeria banks. Data were sourced from secondary sources, this secondary data include, online source, journals and central bank of Nigeria statistical bulletin publication. The major findings indicate that recapitalization policy has significant effect on bank performances in Nigeria, these significant effect are enhancing capabilities to finance larger project, increase in financial deepening, increase in foreign investment, building public confidence, investment in the real sector of the economy, higher returns to the shareholder, financial system stability etc. All these significant effect is as a result of increment of capital base of banks over the years, saving mobilization and real gross domestic products.

 

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

The financial sector is one of the dominant economic sectors in Nigeria. Banks are key players in any country’s financial sectors; they occupy a delicate position in the economic equation of any country such that their (good or bad) performance invariably affects the economy of the country (Wilson 2006). Studies here shown that the banking sector which actually started in Nigeria in 1892 (Nwankwo 1980) has been largely volatile within spates of banking failure experienced in most parts of the 1990s and in the early and mid 2000s.

The strategy often utilized to strengthen banks in Nigeria and save them from financial distress is capital regulation by the central bank of Nigeria (CBN). A cursory look at the history of banking in Nigeria reveals that the CBN has found reason to share up the capital base of Nigeria bank, a number of times since 1980s from a modest value of N10million naira minimum paid up capital in 1988, Nigerian. Commercial banks were required to maintain capita not below N50million in 1991. Between 1991 and 2005 subsequent increase have also been made ranging from N50million in 1997 N1billion 2001; N2billion in 2002 to N25billion in 2005 (Onaolapo 2006) within 18months and also to consolidate the banking institution through merger and acquisitions before 31 December 2005.

This was an effect to instill discipline into the financial system and to reposition Nigerian banks for global integration the governor of the CBN Charles Soludo (Prof.) on 6th July 2004 presented the 13point reform agenda at a special meeting of the bankers committee in Abuja on this new bank reforms. The agenda was envisaged to facilitate greater mobilization of resources and improvement in financial intermediation, deepen and widen the capital and money markets and ultimately stimulate development of the private sector.

Prior to the banking sector reforms of 2004 there were 89banks with about 3,300 branches as at July 31st, 2004. The 89banks had a total asset of US and 18.0billion (Bullion CBN vol.30 No, 2). This was in sharp contrast to South Africa for example, where only 8banks had assets worth more than all banks in Nigeria put together. The reform of the Nigerian banking industry is therefore aimed at strengthening the banking system and refocusing it to play its intermediation role more effectively. The researcher’s interest on this subject emanated from the observation that recapitalization policy has both significant effect and no significant effect on bank performance.

1.2 STATEMENT OF RESEARCH PROBLEMS

The frequent interruptions by the government reversal of policies, weak government appointed staff poor and minimal supervision and monitoring of financial reporting and other short comings worsened the banking sector problems and its performance. The Nigerian banking system has therefore just been re- energized through the recapitalization policy and other measure such as bank consolidation as a means of reducing the effects of any crisis that may arise from future failure. The exercise witnessed mergers and acquisitions by some banks. This is expected to pose some problems to these banks.

The challenges which have come about as a result of the recapitalization policy has to be mitigated to enable us realize the maximum bank performance in Nigeria. The Nigeria banking sector must therefore be evaluated and re-energized to face these challenges. The study therefore seeks to examine the recapitalization policy and bank performance in Nigeria.

Specifically the study seeks to provide answers to the following questions;

1. What is the mean of recapitalization policy in banking industry?

2. What is the rationale for recapitalization in the Nigerian banking industry?

3. How has recapitalization of the banking industry in Nigerian fared thus far?

4. What are the effects of recapitalization on the Nigeria bank?

1.3 OBJECTIVES OF THE STUDY

The objective of the study is to critically examine the recapitalization policy and bank performance in Nigeria. The specific objectives are to;

a. Examine history of bank recapitalization

b. Assess historical background of banking in Nigeria

c. Assess the challenges facing the banking industry in Nigeria

d. Assess rationale for recapitalization in Nigeria banking industry

e. Assess the benefits of recapitalization

1.4 SIGNIFICANCE OF THE STUDY

Experience has shown that the performance of the Nigeria banking industry is regarded as awkward due to low capital base, inadequate financing insider abuse by directors, weak government appointed staff, poor supervision and monitoring of financial reporting and so on. Hence, the study would be relevant for the recapitalization assessment of bank performance in Nigeria.
It is hoped that the finding would earn our Nigerian banks public confidence, ensure higher returns on investment in the industry and compete favorably in the study will contribute to the already existing body of knowledge and stimulate further more on banking recapitalization its activities and its performance in Nigeria economy.

1.5 STATEMENT OF THE RESEARCH HYPOTHESIS

However for the purpose of this study to set of hypothesis will be used. These are signified by the symbols H0 for null hypothesis and H1 for alternative hypothesis

H0: b0 = 0 (which states that recapitalization has no significant effects on bank performance in Nigeria)

H1: b1 = 0 (which states that recapitalization has significant effects on bank performance in Nigeria)

1.6 SCOPE AND LIMITATION OF THE STUDY

This study focuses on the banking reform and its performance that took place between 1985 and 2010. The limitation of the study is the rarity of published materials on the subject matter. The reform is quite new and researches on the subjects are ongoing, also time pose as a limitation to this research. However, these limitations do not affect the validity of the research findings as the available data were very enriching.

  DOWNLOAD THE COMPLETE PROJECT

RECAPITALIZATION POLICY AND THE BANKS PERFORMANCE IN NIGERIA (1985 – 2010)

Not The Topic You Are Looking For?



For Quick Help Chat with Us Now!

+234 813 292 6373

+233 55 397 8005


HOW TO GET THE COMPLETE PROJECT ON RECAPITALIZATION POLICY AND THE BANKS PERFORMANCE IN NIGERIA (1985 – 2010) INSTANTLY

  • Click on the Download Button above.
  • Select any option to get the complete project immediately.
  • Chat with Our Instant Help Desk on +234 813 292 6373 for further assistance.
  • All projects on our website are well researched by professionals with high level of professionalism.

Here's what our amazing customers are saying

Uduak From Uniuyo
IProjectMaster is the best project site for students. Their works are unique and free of plagiarism!
Excellent
Musa From Ahmadu Bello University
Thank you iprojectmaster for saving my life, please keep it up and may God continue to bless you people.
Excellent
MATTHEW NGBEDE
Ahmadu Bello University
I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!
Excellent
Ibrahim Muhammad Muhammad
Usmanu danfodiyo university, sokoto
It's a site that give researcher student's to gain access work,easier,affordable and understandable. I appreciate the iproject master teams for making my project work fast and available .I will surely,recommend this site to my friends.thanks a lot..!
Excellent
Azeez Abiodun
Moshood Abiola polytechnic
I actually googled and saw about iproject master, copied the number and contacted them through WhatsApp to ask for the availability of the material and to my luck they have it. So there was a delay with the project due to the covid19 pandemic. I was really scared before making the payment cause I’ve been scammed twice, they attended so well to me and that made me trust the process and made the payment and provided them with proof, I got my material in less than 10minutes
Very Good
Gbadamosi Solomon Oluwabunmi
Lasu
Swift delivery within 9 minutes of payment. Thank you project master
Excellent
Abdulrazak Bello Marsha
Usman Dan fodio University
It was quite a better guide for project and paper presentation purpoting. Many thanks.
Average
Dau Mohammed Kabiru
Kaduna State College of Education Gidan Waya
This is my first time..Your service is superb. But because I was pressed for time, I became jittery when I did not receive feedbackd. I will do more business with you and I will recommend you to my friends. Thank you.
Very Good
Merry From BSU
I am now a graduate because of iprojectmaster.com, God Bless you guys for me.
Excellent
Emmanuel Essential
Kogi state University
I actually took the risk,you know first time stuff But i was suprised i received as requested. I love you guys 🌟 🌟 🌟 🌟
Very Good

FREQUENTLY ASKED QUESTIONS

How do I get this complete project on RECAPITALIZATION POLICY AND THE BANKS PERFORMANCE IN NIGERIA (1985 – 2010)?

Simply click on the Download button above and follow the procedure stated.

I have a fresh topic that is not on your website. How do I go about it?

How fast can I get this complete project on RECAPITALIZATION POLICY AND THE BANKS PERFORMANCE IN NIGERIA (1985 – 2010)?

Within 15 minutes if you want this exact project topic without adjustment

Is it a complete research project or just materials?

It is a Complete Research Project i.e Chapters 1-5, Abstract, Table of Contents, Full References, Questionnaires / Secondary Data

What if I want to change the case study for RECAPITALIZATION POLICY AND THE BANKS PERFORMANCE IN NIGERIA (1985 – 2010), What do i do?

Chat with Our Instant Help Desk Now: +234 813 292 6373 and you will be responded to immediately

How will I get my complete project?

Your Complete Project Material will be sent to your Email Address in Ms Word document format

Can I get my Complete Project through WhatsApp?

Yes! We can send your Complete Research Project to your WhatsApp Number

What if my Project Supervisor made some changes to a topic i picked from your website?

Call Our Instant Help Desk Now: +234 813 292 6373 and you will be responded to immediately

Do you assist students with Assignment and Project Proposal?

Yes! Call Our Instant Help Desk Now: +234 813 292 6373 and you will be responded to immediately

What if i do not have any project topic idea at all?

Smiles! We've Got You Covered. Chat with us on WhatsApp Now to Get Instant Help: +234 813 292 6373

How can i trust this site?

We are well aware of fraudulent activities that have been happening on the internet. It is regrettable, but hopefully declining. However, we wish to reinstate to our esteemed clients that we are genuine and duly registered with the Corporate Affairs Commission as "PRIMEDGE TECHNOLOGY". This site runs on Secure Sockets Layer (SSL), therefore all transactions on this site are HIGHLY secure and safe!