ProjectClue.com WhatsApp or Call Us

projectclue whatsapp icon07030248044

Project Topic:

THE IMPACT OF IMPROVED CAPITALIZATION ON NIGERIAN BANKS LENDING

Project Information:

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 70 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   2,434 people found this useful

Project Department:

BANKING FINANCE UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

Project Body:

CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND O THE STUDY

Nigeria banking sector has experienced a boom-and-burst cycles in the past 20 – 25 years. After the implementation of the structural adjustment programme (SAP) in 1986 and de-regulation of the financial sector, new banks proliferated mainly driven by attractive arbitrage opportunities in the foreign exchange market (Heiko, 2007), but prior to the de-regulation period, financial intermediation never took off and even declined in the 1980s and 1990’s (Capirio and Klibiel).

The sector was highly oligopolistic with remarkable features of market concentration and leadership but noted that there are ten banks that control more than 50% of the aggregates assets of the bank banking sector, more than 51% of the aggregate deposites.

The sector characterized by small scale banks with higher overheads, low capital base averaging less than $10 million, heavy reliance on the government patronage and less making. Nigeria banking sector was still characterized by a high degree of fragmentation and low level of financial intermediation up to 2004.

This research work is motivated by the need to look into the central bank (CB)’s recent reform (Capitalization) that employed certain measures to strengthen the Nigeria banking system by drastically increase the minimum capital requirement from N2 billion of N25 billion ($190 million US). Through review of relevant literatures, analysis of policy documents official report and economic information on the banking sector, it became evident that the capitalization of bank led to a remarkable reduction in the number of banks from 89 to 25 by merge, acquisition, initial public offer and other means. The research work concludes that bank capitalization has resulted in making bank more efficient and reliable and also, their intermediary potentials have also been revised.   

 

1.2      STATEMENT OF PROBLEM

Recapitalization of the Nigeria banks which started in 2004, has been a great advantage to the Nigeria economy. Before that, there were many Nigeria banks that had weak capital bases. This resulted in frequent bank burst and the low capital requirements also meant that important men could and did not set up public banks which they ran with total disregard for the minority shareholders. Banks on their own could not carry their primary function of lending because of liquidity problem. This therefore put the economy in adverse economic and financial problem. Banks at this time were running at in increase lending rate between 25 – 27%, thereby making credit to the real sector difficult. Industry operators attributes this to high operating cost occasioned by decay infrastructure. The implication is that the prices of goods and services are on the rise with lower disposable income. Consequently producers are facing resistance from consumers who have cut down significantly on consumption. This development poses a serious problem to the bank lending as they need to grow their loan portfolio to be able to compete with emergency market peers.

1.3      OBJECTIVES OF STUDY

Bank capitalization will go a long way in enhancing economic growth in Nigeria and also in the banking and financial sector of the nation.

Hence, the fundamental objective of this study are:

-              To asses the implication of capitalization on the banking industry

-              To examine the impact of capitalization on Nigeria banks

-              To asses the state of Nigeria banks before capitalization

-              To identify the benefits of bank capitalization

-              To identify the effect of bank capitalization on Nigeria, economy at large.

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  ::   18289 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