The Impact Of The 25 Billion Recapitalization By The Central Bank Of Nigeria On Commercial Banks

The Impact Of The 25 Billion Recapitalization By The Central Bank Of Nigeria On Commercial Banks

Table Of Content

Chapter One

Preface

Background of the study

Statement of the Problem

Objects of the Study

Significance of the Study

Limitation of the study

description of terms.

Chapter Two

Review of affiliated literature

Chapter Three

exploration design and methodology

Sources of data

position of data

system of data collection

Chapter Four

Findings

Chapter Five

Recommendation and Conclusion.

Bibliographies.

Chapter One

Preface

Central bank of Nigeria is the apex fiscal institution in Nigeria charged with the responsibility of maintaining financial and financial. Stability in the frugality. The CBN has its headquarters in Abuja(F.C.T) with some zonal services in Lagos, Kaduna, Enugu and Ibadan. It’s located in Enugu zone at Opara Avenue.

In this study, the experimenter’s mind it to know the impacts of the B25billionre-capitalization by the CBN on the marketable banks in Enugu state off Nigeria, also banks nation-wide.

The experimenter wants to know the problems that has caused this new directives also, assume the ways the marketable banks can take- up to meet up with the new directives. The experimenter also, wants to know if this new directives by the CBN will help ameliorate the banking and Nigerian frugality.

Background Of Th Study

The central bank of Nigeria was established in 1958 under the CBN act of 1958 which was repealed thereby reenacting the CBN act of 191( decree No 24).

The CBN owes its actuality to the act and it was set up with certain cardinal objects in mind,e.g( i) to issue legal tender currency in Nigeria.

ii) to promote financial stability and a sound fiscal system in Nigeriaetc.

regulations frequently times take the forms of either rules or directive from the central bank and that’s why it has been given the power to

a) From time to time, issue directives by leaflets taking each banks to maintain at all times in the form of cash reserves with the bank at its office a sum equal to a specified rate of the bank deposit arrears, etc section 39( i).

b. On the recommendation from the chairman of the postponement democracy, determine what shall be the minimal paid up share capital of each order of banks. Section 9( 1).

It has a operation platoon headed by the governor of the bank, deputy governors and directors of the different sectors. The governor is an ramify- suitable to the board of directors for its acts and opinions.

Section 7

Statement Of The Problems

In this section, the experimenter concentrated on the impacts of the N25 billionre-capitalization( new directive) by the central bank of Nigeria( CBN) on the marketable banks in Enugu megalopolis and nation-wide.

There-capitalization is feasible of yielding some positive responses or goods on the marketable banks which are as follows

1. Globalization

2. Merger & Acquisition and connection.

3. Increased professional.

4. Stable frugality.

According to CBN governor,Prof. Charles Soludo, We affirms that there-capitalization is a further to strengthen the capital base and introduce multi functional face into the assiduity. January 4, 2005 This Day News.

Objects Of The Study

The abecedarian objects that urged the experimenter to going into this content are as follows

To know the reason why the central bank of Nigeria( CBN) came up with similar directive( N25 billionre-capitalization).

To find out how the marketable banks in Enugu state and nation-wide will raise or meet up with the new directives.

To find out the impacts of the new directives on marketable banks.

d. There-capitalization, will it help Enugu state and the Nigerian frugality?

Significance Of The Study

The significance of this study is to achieve a great success in contributing the little the experimenter can, if not a great deal in expressing the impacts of the new directive( N25 billionre-capitalization) by the central bank of Nigeria on the marketable banks which will bring about an immense knowledge and enlightenments with particular reference to the banks in Enugu state.

Hopefully allowed , this exploration work will eventually broaden the compass of the staffs and operation of marketable banks in Enugu state. Also, bring about more conspicuous donation and improvement to both headquarters and other branches nation-wide to know the benefits and impacts.

Conclusively, though the experimenter limited the study to Enugu state and banks, the result of the findings will be of great benevolence to all marketable banks in Nigeria likewise, scholars conducting analogous exploration work on the same content or affiliated bones .

Description Of Terms

IMPACTS This is the response or the drive of the policy on the fiscal deals in the different situations of banks operating in the nation.

RE-CAPITALIZATION This is a policy maturity by the central bank of Nigeria( CBN) which creates a gradational change in the nation.

It’s also the slight differences in bank’s capital base either advanced or lower depending on the policy of the CBN.