Study Of The Impact Of Universal Banking In Nigeria Financial System

Study Of The Impact Of Universal Banking In Nigeria Financial System

Abstract

The study of the impact of universal Banking is one of the critical for banks Nigeria to attain lesser light. This borders utmost no the effect of the New conception in Nigeria banking system that tends to remove the functional walls between marketable and trafficker banks, and accordingly empowers the bank to take over part from their conventional banking business, capital request operations and insurance services.

The chapter I stresses on the preface. It inversely deals with the background of study statement of problems, the ideal of was grounded on disinterring the overall performance of the Nigeria banking system previous to the preface of universal banking, exploration questions, significance and thesis to test.

On chapter 2, the knowledgeable review was stressed.

Chapter three( 3) deals with the exploration design and the primary and secondary data.

Chapter four( 4) stressed on the donation of data and analysis. While chapter 5 compresses of the condition with the below procedures, the exploration clones to carry out the exploration work successfully.

Chapter One

Preface

Background Of The Study

The performance of the Nigeria banking sector has been a serious concern to the generality of Nigeria. similar Nigerians includes but aren’t confined to politicians, the service, the academic community, industrialist, dealers, and indeed the peasant community. As one reflects on the present state of the sector, one can not but come to the sad conclusion that all isn’t well.

Actually, the system of expressing the dissident within the banking sector may be varied but there’s umainity in feedings. These passions have one interpretation, which can be described in a polite language as bafflement at the modes of operation of banks.

The questions that readily comes to mind is reprised in one judgment ; what’s wrong with our banking sector? other questions fact draws from this includes.

i) Is the problems that of operation?

ii) Is the problem that of poor nonsupervisory policy by the controlling authorities?

iii) Is the Nigeria banking terrain innately imperfect?

Whatever the reasons that can be cited for the unimpressed performance of this subsection, one thing is crystal clear clear, the banking sector is sick and may have lapsed into comma, thus a serious surgical operations may be needed to revitalize and sanitize it.

likewise, inspite of drastic changes that took place in the Nigeria Banking sector within the last decade in the area of institutional frame, legal and nonsupervisory fiscal, the overall performance of this assiduity can be said to be grotesque, absend and in congruous with the anticipation of Nigerians.( Emekewue, 2003).

With the ever – adding deregulation and liberalization of the fiscal system and the revolution in information technology, the Nigeria frugality can not but be affected by the globalization of the world frugality. It’ll be faced with foreign competition for it’s easily position for Nigeria to profit from position affect this miracle, similar as capital overflows, it mammy have a health and sound fiscal system and institution with the capacity to play the global gave efficiently and effectively( CBN) Ballion 2003

also, within the environment of globalization, deregulation and liberalization, the preference will before a system that permits unfettered choice which is a vote for the universal banking, where the fiscal bankers between banks are removed and compass and operation of banks enhanced.

This, the conception of universal banking will allow banks the authority to decide on its portfolio of business, elect applicable delivery channels and faculties within an applicable and applicable nonsupervisory frame. The distinction between plutocrat, capital request and insurance business is survived, and the emergence of large fiscal empires and banking group will be encourage.

Statement Of The Problem

The banking extremity that gives rise to the failure of may banks has brought the venerability of the banking sector to constant focus. The failure may banks in fail country has not only posed integrity question but has greatly reduced the confidence, which is the topmost means of banks.

This the experimenter intends to study and examine the impact of the universal banking in Nigeria fiscal system and to make applicable recommendation for optimum performance

Purpose/ Ideal Of The Study

The strategic significance of the fiscal system can not be over emphasized in every frugality.( Anyanwu Okoro, 2003). This continuos emphasis stern from veritably sensitive nature of the fiscal which control a substantial interest in the system. Hence, the objects of the exploration are-

( i) To examine the overall performance of the Nigeria banking system previous to the preface of the universal banking as a foundation in justifying its applicability to the nations fiscal system.

ii) To find the problems that will be faced by the other actors in the fiscal system( Capital Market drivers and the insurance assiduity)

iii) To find the problem that will defy the nonsupervisory and administrative authorities in performing their statutory duties.

iv) To find the short carryings associated with the conception of universal banking in the Nigeria fiscal system.

v) To find the benefit that will come from the preface of the universal banking to the fiscal sector.

vi) Eventually to recommend the operation or not of the conception of universal banking in the Nigeria fiscal system.

Exploration Questions

The experimenter has formulated the underlets questions which according to he’ll give the base of carrying the exploration in line with the ideal of the study.

1. What’s the overall performance of the banking assiduity previous to the preface of the universal banking.

2. What are the problems that will defy the nonsupervisory and administrative authorities under the universal banking system?

3. What are the problems that will be faced by the other party in the nations fiscal system?

4. What are the benefits as associated with universal banking?

5. What are the failings associated with universal banking?

Exploration Thesis

The following exploration thesis formulated by the exploration in the course of the disquisition.

1. H0 The performance of Nigeria banking assiduity previous to the preface of universal banking isn’t encouraging.

H1 The performance of Nigeria banking assiduity previous to the preface of universal banking is encouraging.

2. H0 The preface of universal banking can’t produce problem of competition among the other service providers in the Nigeria fiscal system.

H1 The preface of universal banking can produce problem of competitions among the other service providers in the Nigeria fiscal system.

3. H0 The emergence of universal adeptly won’t pose serious nonsupervisory and administrative problems to the authorities concerned.

H1 The emergence of universal won’t pose serious nonsupervisory and administrative problems to the authorities concerned.

4. H0 Nigerian fiscal system can not profit greatly from the operation of universal banking system.

H1 Nigeria fiscal system can banking greatly from the operation of universal banking system.

Significance Of The Study

Following the approved in principle of the relinquishment of the conception of universal banking in Nigeria, prestigious Nigerians, policy make actors and the drivers in the nations fiscal request and the general public have been engaged in series of covering and diverging views concerning the felicity or else of the universal banking system in the nations fiscal system. Hence the exploration work will be of immense benefit to the banking assiduity where the conception in question will b noted. Also capital request and insurance drivers will profit from the exploration work immensely( in no small ways).

also, the nations nonsupervisory and administrator authorities will inversely benefits greatly from this wok. Eventually the scholars, other experimenters and the interested public can profit from this wok.

Compass, Limitation And Delimitations Of The Study

compass As stated before the significance of sound and a stable fiscal system can’t be overemphasize as a diving force in any progressive frugality. also the banking system being the most sensitive subsection in any fiscal system can also not be ignored. Hence, the exploration was intended to limits its analysis on the study of the impact of universal banking in the nations fiscal system with fiscal attachment to First Bank Nig PLC within Enugu,( First Bank Nig PLC, Officers of nonsupervisory and administrator authoritiesetc.)

LIMITATIONS- In carrying out the exploration, the experimenter encountered multitudinous problems that militated in smooth and sound operation of the work. specially among the was finance and time constraints. still, the experimenter was of the opinion that this limitations won’t have a significant in; influence in the findings of the work.

DELIMITATION In piling on this exploration work, and bearing in mind the element of Nigerian fiscal system, the experimenter suffers the following delimitation-

( i) None response numerous people that would have supplied precious information couldn’t be delved due to some logistics problems.

ii) executive tailback The experimenter couldn’t get the required information from the concerned people due to the fact that similar information were said to be conformed to sanctioned consumption only.

Description Of Terms

The experimenter in expectation of the significance of the work to non – banking and Finance grounded disciplines has thus bearing the explanation of some affiliated terms and language as it issued in the work. The undertaking of the terms will go the interested parties the occasion to understand the work in all its ramifications.

1. BANKING SYSTEM This is the total of the banking establishment in an frugality. In this was the term should apply to marketable and trafficker bank only.

2. FINAANCIAL SYSTEM This is the total of all the banking system, insurance assiduity, capital request drivers and the applicable nonsupervisory and administrator institutions.

3. Nonsupervisory AND Administrative AUTHORITIES They operations of the institution under this governance, CBN for Banking system, SEC for capital request NAICOM for insurance assiduity.

4. UNIVERSAL BANKING SYSTEM- This is a new conception in the Nigeria banking system which tends to remove the functional walls between marketable trafficker and accordingly powers of the bank to take over piecemeal from their conventional banking business, capital request operations and insurance services.

5. FINANCIAL Empires This is a group of fiscal grounded serve provides identical in all felicitations; and controlled by holding company.

6. GLOBALIZATION AND LIBERALIZATIONAL

GLOLOALIZATION- This is the state of collective commerce and coming together of the global frugality where arising practices, generalities, and conventions that have set up chaffing in other frugality are brought to other economics.

Emancipation This is yet another profitable policy that tend to remove the offensive and retrogressive programs that inhibits free movement of goods and services.

7. FINANCIAL request- This is the request or any contact arrangement whereby the merchandisers and buyers of varying degree of fiscal scores can meet in order to grease exchange.

8. PINANCIPLE extremity- This is the situation whereby the fiscal system is characterized by torture failure and unresponsive to its commercial actuality.

9. DEREGULATION- This is a system that allows the force of demand and force to determine the force, prices and volume of fiscal services.

10. FINANCIAL INTERDIATION- This is the process of marshaling fund from supernumerary profitable unit and advancing the same to the deficiency unit.

Reference

Anyanwu Okoro, Mike( 2001) Banking Operations Enugu Hossana publicationsPP. 56 – 0 57

Emekekwue, Patrick( 2003) “ Banking in Nigeria in the 21st Century, prospects and challenges ” Nigeria Journal of finance vol 1 SeptemberP. 160

Oladipo, Bisi( 2002) “ NAI, NCIB, reject CBN Bill Business Times Vol. 26 No 66 April 1 – 6P.7

Okafor, Festus( 2002) “ Challenges facing the Nigeria banking assiduity “ CBN Bullion “ CBN publication LagosP.19.

Orijih, John( 199) Business Research Methodology Enugu hype company PP. 37- 40.