Bank Recapitalization And Small And Medium Scales Enterprise In Nigeria

Bank Recapitalization And Small And Medium Scales Enterprise In Nigeria

Abstract

This exploration work examined bank recapitalization and small and medium scales enterprise in Nigeria. There’s dearth of fiscal institutions which feed for long and medium term credit requirements of businesses operating in the frugality. SMEs are no exceptions to these, and they suffer a great deal for want of capital for development and expansion of the profitable survival of the country. Data collected was analysed using chi-square fashion and tabulated. The Data gathered from the field was analysed on statistic package for social lores( SPSS) in other to enhance data collection and gain accurate and concrete information about the study. Findings from this study show that bankre-capitalization has led to the increase of finances to SMEs. It’s apparent that there are advancing programs for small and medium scale diligence. It’s apparent that bank requires a feasibility study of the proposed design before granting loans. In organisations, it shows that small and medium enterprises equity investment schemes( SEMEEIS) have positive effect on SSE and the frugality in general. also, loan granted to it contributed to the growth of the business. Bank recapitalization has led to request expansion. Banks misbehave with the minimal credit allocation to SSEs as needed by the CBN through its guidelines which stipulates that they should set away 10 of their profit before duty for SSEs. The study concludes that the recapitalization exercise endured in Nigeria played a significant part in banks ‟ capital base as well as restoring confidence among banks ‟ guests and therefore improves business deals. The study recommends that The Central Bank of Nigeria( CBN) should put in place a stronger banking supervision department to sustain the performance of the banking and recapitalization programs in the banking assiduity in Nigeria. Interest which deters people with genuine business ideas should be reduced to a sufferable position so as to make borrowing cheaper. All executive bottle necks which make finances inapproachable to small and medium scale enterprises drivers should be eased. The Central Bank of Nigeria should as a matter of urgency impel all other marketable banks to cleave rigorously to banking programs and regulations. Eventually, Prospective business drivers should conduct expansive feasibility studies to estimate the viability of any proposed business to avoid investment in empty gambles.