ProjectClue.com WhatsApp or Call Us

projectclue whatsapp icon07030248044

Project Topic:

ASSESSMENT OF THE EFFECTS OF BANKING REFORMS IN THE DEVELOPMENT OF SMALL AND MEDIUM ENTERPRISE

Project Information:

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 52 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   1,544 people found this useful

Project Department:

BANKING FINANCE UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

Project Body:

CHAPTER ONE

1.1  Background of the study

It is incontrovertible that the banking system is the engine of growth in any economy, given its function of financial intermediation. Through this function, banks facilitate capital formation, lubricate the production engine turbines and promote economic growth. However, banks’ ability to engender economic growth and development depends on the health, soundness and stability of the system. The need for a strong, reliable and viable banking system is underscored by the fact that the industry is one of the few sectors in which the shareholders’ fund is only a small proportion of the liabilities of the enterprise. It is, therefore, not surprising that the banking industry is one of the most regulated sectors in any economy. It is against this background that the Central Bank of Nigeria, in the maiden address of its current Governor, Prof. Charles Soludo, outlined the first phase of its banking sector reforms designed to ensure a diversified, strong and reliable banking industry. The primary objective of the reforms is to guarantee an efficient and sound financial system. The reforms are designed to enable the banking system develop the required resilience to support the economic development of the nation by efficiently performing its functions as the fulcrum of financial intermediation (Lemo, 2005). Thus, the reforms were to ensure the safety of depositors’ money, position banks to play active developmental roles in the Nigerian economy, and become major players in the sub-regional, regional and global financial markets. The key elements of the 13-point reform programme include: Minimum capital base of N25 billion with a deadline of 31st December, 2005; Consolidation of banking institutions through mergers and acquisitions; Phased withdrawal of public sector funds from banks, beginning from July, 2004; Adoption of a risk-focused and rule-based regulatory framework; Zero tolerance for weak corporate governance, misconduct and lack of transparency;

1.2                                 Statement of the Problem

The Nigerian banking sector witnessed dramatic growth post-consolidation. However, neither the industry nor the regulators were sufficiently prepared to sustain and monitor the sector’s explosive growth. Prevailing sentiment and economic prevailing attitude all encouraged this rapid growth, creating a blind spot to the risks building up in the system.

The following question was raised for this research work

1.                 Does a large and sudden capital inflow lead to Macro-economic instability?

2.                 Does bank consolidation lead to major failures in corporate governance at banks?

3.                 Are weaknesses in the business environment attributed to bank reform?

1.3            Objectives of the Study

The objective of this study is to evaluate the prospects of banking reforms in the development of small and medium enterprise.

1.3.1  General  objective

To investigate the effects of corporate governance of the banking system of performance of small and medium enterprises in Nigeria.

1.3.2  Specific objective

1.                 To find out the causes of macro-economic instability during the banking reforms.

2.                 To identify reasons for corporate governance failure in banks.

3.                 To examine the business environment in relation to bank reformation.

1.4     Research Hypothesis

The following hypotheses are formulated.

Hypothesis 1: Banking reforms leads to development of small and medium enterprise

Hypothesis 2: Bank reforms have led to weaknesses of small and medium enterprise

1.5     Significance of the Study

The banking industry has aided small and medium enterprise and business development attracted public and press criticism and has been a much complicating issue. It is obvious therefore, that this study will be significant in pointing out the need the weaknesses and strength of bank consolidation.

Moreover, the study will show the banks investment and services have helped small and medium enterprise development and the investors will benefit from this study by knowing the provision (loans, advances etc) which the banks offer.

In addition, it will identify the effect (positive or negative), which the banks roles have on the small and medium enterprise growth and development. Amongst others, government will greatly benefit from the findings of this study, in that with the knowledge of the positives effects that the banks reforms of 2004 have on the small and medium enterprise decisions and policies which are favourable to bank and the economy as whole.

Lastly the study will be useful for future researcher, as it will serves as a source of information

1.6     Scope and Limitations of the Study

This study is to evaluate the prospects of banks during the consolidation era. Also the effect such reformation has on the development of small and medium enterprise . The study will also cover the period of 2004 – 2009.

It is expected that this study may experience the following limitations.

Firstly, this work will not be able to study all the public sectors in Nigeria as such this may in a way limit the scope of this study.

Secondly, it expected that the management and staff of the Kaduna north local government may not want to divulge certain data required for the study and this may in way reduce the quality of data for the study. However, the researcher will try his best to mitigate these limitations and others unforeseen ones. This will be done by structuring and designing the instrument for data collection to elicit non sensitive information from them.

1.7     Definition of Terms

Bank Credit: It is a major determinant of the money supply and it embraces the amount of loans and advances given by the financial institutions of Nigeria – Commercial banks and Merchant banks to economic agents.

Capital adequacy ratio: This ratio is defined as the total qualified capital to total risk weighed asserts.

Cost of Capital: Is the cost incurred in securing funds or capital for productive purposes.

Bureau De Change: this is financial institution licensed to buy and sell foreign exchange to small scale users e.g. individual and businesses.

Balance of Payment (BOP): These are records of economic and financial transactions between the residents of a country and the rest of the world during a given period of time. Discount House: Is a financial institutions that trades in government securities both at the primary and secondary segments.

 Exchange Rate: this is the price of one currency expressed in terms of another.

Spot Rate: Is the interest rate submitted by dealers at which they can buy securities.

Open Market Operations: This involves the discretionary power of the Central Bank of Nigeria to purchase or sell securities.

 Treasury Securities: are money market instruments created by government for financing short – term fiscal operations. Prime Lending Rate: This is the interest rate applied to loans made to customers with the highest rating for each bank rate also represents the minimum lending rate.

Get the complete project »


Instant Share On Social Media:


Can't find what you are looking for?
Call (+234) 07030248044.

OTHER SIMILAR BANKING FINANCE PROJECTS AND MATERIALS

A CRITICAL ANALYSIS OF CAUSES AND PROBLEM OF FINANCIAL DISTRESS IN NIGERIA BANKING SECTOR (A CASE STUDY OF AFEX BANK PLC.)

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 68 ::   Attributes: Questionnaire, Data Analysis,Abstract

CHAPTER ONE INTRODUCTION The importance of capital as a necessity though not sufficient condition for economic growth is recognized in development economy where it is believed that the position of ...Continue reading »

A CRITICAL ANALYSIS OF THE USE OF FINANCIAL REPORT IN ASSESSING BANK PERFORMANCE. (A CASE STUDY UNION BANK OF NIGERIA PLC)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 72 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   5110 engagements

CHAPTER ONE INTRUDUCTION BACKGROUND OF STUDY A farmer, who plants corps, expects result, similarly to student who sits for examination expects results. The same 5 also true of an investor. For the ...Continue reading »

A CRITICAL ANALYSIS ON THE USE OF FINANCIAL STATEMENTS IN ASSESSING THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIRST BANK NIGERIA)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 72 ::   Attributes: Questionnaire, Data Analysis  ::   18288 engagements

ABSTRACT This project work is carried out to examine the contribution of micro finance banks to the development of Small and medium scale enterprises in Nigeria. The Brass micro finance bank is used a...Continue reading »

A CRITICAL APPRAISAL OF CURRENT ASSETS MANAGEMENT IN PUBLIC LIMITED LIABILITY COMPANIES

 Format: MS WORD ::   Chapters: 1 - 5  ::   Pages: 80 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   3640 engagements

ABSTRACT This project examined the management of current assets in public Limited Liability Company. It is obvious that no company can perform well without good current asset management. This cares f...Continue reading »

A CRITICAL APPRAISAL OF CURRENT ASSETS MANAGEMENT IN PUBLIC LIMITED LIABILITY COMPANIES

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 55 ::   Attributes: Questionnaire, Data Analysis, Abstract

CHAPTER ONE 1.0 INTRUDUCTION: Current assets as one of the management tolls of business organization are very important in the proper function of business and achievement of organizational goal. Cur...Continue reading »

A CRITICAL ASSESSMENT OF THE SURVIVAL STRATEGIES OF DEPOSIT MONEY BANKS IN A DEPRESSED ECONOMY

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 68 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1808 engagements

CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Nigerian economy is faced with national and global economic challenges and as such, the financial institutions, especially the banking sector ha...Continue reading »

What are looking for today?

WHAT OUR CUSTOMERS ARE SAYING:
  • 1. Abubakar Sani from Nigerian Investment Promotion Commission said "I had a wonderful experience using ProjectClue, they delivered not only on time, but the content had good quality. I recommend ProjectClue for any project research work.".
    Rating: Excellent
  • 2. Ogunniran Olawale from Ekiti state university said "Projectclue is really safe and reliable Quick access to project works Nice customer service Fast delivery of request Recommend this toy fellow students ".
    Rating: Excellent
  • 3. Fahat Nasir from isa kaita college of education dutsinma said "Fish farming a solution unemployment ".
    Rating: Very Good
  • 4. Ajimbi Oluwarotimi from Theology school osun said "Good ".
    Rating: Very Good
  • 5. Clement Abdullahi Ogiji from National Open University of Nigeria said "I am a living witness and have recommended project clue to a lot of students, so far none have been disappointed, very reliable and, trustworthy and dependable".
    Rating: Excellent
  • 6. Jhuee from Sultan national high school said "Good quality. I recommend project clue for any project research work.".
    Rating: Excellent