AN APPRAISAL AND THE PROBLEMS OF NEW BANK IN NIGERIA

ABSTRACT

 This paper aims of examining the problems new banks the impact of the problem on the banking industry and the possible strategies by which such problems can solved. however, personal  objective part from academic fulfillment made this plausible, hence it did not subscribe to the particular  economies theories ,rather the various problem of new banks prevalent in Nigerian are studies. To this end, the look is designed to serve as a reference guide to both students who wish to know about the problems of new banks and also to the policy making body of the government, the central bank of Nigerian. This research work is not in any way an exhaustive study of problem of new bank in Nigerian, because to get a clear, thorough and exhaustive overview  of these problem of new  bank in Nigerian would include a heavy expenditure beyond the finance of this research .the following areas was therefore  studied causes of bank failure ,how to improve the safety of banks organsational problem of new banks prospect of new bank and policy recommendation made ,conscious of the fact that many important problem vela try  to the sudsiest were not treated because of time and money.

TABLE Of CONTENTS

 CHAPTER ONE

.1.0 INTRODUCTIONS

Statement of problem

Purpose   

Significance of the study

Statement of hypothesis

Scope of the study

Limitation of the study

Definition of terms

CHAPTER TWO

2.0 REVIEW OF RELATED LITERATURE 

2.1   FUNCTION OF BANK IN NIGERIAN 

• The problem of new banks in Nigerian
• Withdrawal of government funds from bank Beth commercial and merchant bank  
• Problem payment of interest on current account
• Problem of Defaults in inter-sale interest
• Causes of bank failure
• Management of citizen bank of Nigerian

CHAPTER THREE

• RESEARCH DESIGN AND METHODOLGY
• SOURCES OF DUTY

3.11          PRIMARY DUTY

3.12          SECONDARY DUTY

• Sample used
• Method of investigation

CHAPTER FOUR

4.0       DATA PRESENTATION AND ANALYSIS

4.1       TEST OF HYPOTHESIS 

CHAPER FIVE

5.0   SUMMARY OF FINDINGS CONCLUSION AND RECOMMENDATION

• Findings
• Conclusion
• Recommendation

Bibliography

Appendence 

CHAPTER ONE

Government established bank money for development purposes and the vole of banking industry in an economic development cannot be over emphasized. Government owns some banks, for example, first Bank of Nigerian and so on. Both banks. However, banks in Nigerian and other countries of the worlds are established to carry out the following functions;

• Government of loans to customers
• Safeguarding of customers money and some valuable assets such as certificates and so on.
• Management of customers’ investment and advising on insurance matters.
• Providing facilities for the financing of international trade, example documentary credit.
• Creating money by the central bank of that country.
• Mobilization of saving and other deposit.
• Providing advisory services.
• Providing foreign exchange facilities for traders.
• Night safe facilities to customers.
• Agency services to customers who authorized their banks to pay and collect cheques on their behalf.

However, the above function and duties of banks is just to mention but a few because banking industry is dynamic in nature. It varies on public confidence and due to the influence on the nation’s economic life, it needs high quality management and organizational structure with which it can attain maximum operating efficiency and profitability .

Since the advent of structural adjustment programmed [SAP] and its deregulation –policies , banking industry in Nigeria has been receiving a number of policy shocks and the new banks felt it most . Such policy or guideline include: – The central bank of Nigeria  guidelines on reserve requirement and limited capital base for establishment of new banks.

Other direction are the withdrawal of government banks. The payment of interest on current account cancellation of foreign denominated loans . The liberalization of foreign exchange market and the introduction of the controversial national deposit insurance corporation.

• STATEMENT OF THHE PROBLEM

The major problems facing new banks in Nigeria has its origin from central bank [CBN] guideline or directive. These directives of two types; – A] Directive on the establishment of new banks. B] Measures introduced to reduce liquidity in the economy. These measures which the government pursue in this regard lies with the withdrawal of deposits of Parastatals and other government agencies from financial intermediaries Other includes the cancellation of foreign exchange markets. These measure are enforced at the same period and at a time when liquidity ratio have already one high. These affected the new rules rustically because of their climate capital base. Secondly, the economic restructure programmed gave rise to the devaluation of the naira as it sought for the actual value of naira in the international market.