The Problem Facing Commercial Banks In Nigeria (A Case
Study Of Union Banks Of Nigeria United Banks For African And
African Bank)
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TABLE OF CONTENT
Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of content
CHAPTER ONE
INTRODUCTION
1.1
Statement of problems
1.2
Purpose of study
1.3
Significance of the study
1.4
Scope of the study
1.5
Limitation of study
1.6
Definition of terms
1.7
Statement of hypothesis
2
CHAPTER TWO
2.0
Review of related literature
2.1
Definition of commercial bank
2.2
Functions of Nigeria commercial bank
2.3
Ways of regulating the activities
CHAPTER THREE
3.0
RESEARCH DESIGN AND METHODOLOGY
3.1
Sources of data
3.2
Primary and secondary sources of data
3.3
Sample used
3.4
Method of investigation
CHAPTER FOUR
4.0
Data presentation and analysis
4.1
Data presentation and analysis
4.2
Test hypothesis
3
CHAPTER FIVE
5.0
Summary of finding conclusion and recommendation
5.1
Findings
5.2
Conclusion
5.3
Recommendation
5.4
Bibliography
CHAPTER ONE
INTRODUCTION
The problems of commercial banks in Nigeria is the topic of this research
project. Some commercial banks in Nigeria are owned by government some by
individual and other by a combination of both the government and individuals.
Individuals establish banks for the purpose of making profit and to initiate
business opportunity where they are available. Organizations on he other hand
establish banks for profit making and probably to and business governments
establish banks merely for development purpose.
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In recent time it has been the vogue for banks to be ridiculed and criticized for
one reason or the other. These criticisms have emanated both from official and
unofficial quarters and now tend towards a climax.
Commercial banks in Nigeria and other countries are established to carry out
the following functions it deals in money and financial service provide efficient
system for making payment to settle business and personal transaction provide
safekeeping for customers money and valuables provide funds for production
or consumers need convention of funds into assets.
The Central Bank of Nigeria (CNB) is the apex bank. It performs the major
role of monetary management through the issuance of annual monetary policy
circular to banks.
So commercial banks are faced with problems because the polices from the
CBN are not always carefully through out. These failures are due to the fact
that the right questions, to problems of banks are matter asked nor right
answers obtained. Some people attributed the problem of banks to their
inability to match funds. In other words the banks refuse to marry the duration
for which deposits are placed with them with the duration from which they
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place funds with other banks. Other argues that some of the banks reduce the
portfolio of loan and advance while increasing investment.
All these allegation leveled on these banks come from the management teams
of banks in Nigeria. The problems of commercial banks were formerly
attributed to a regulatory body like central bank of Nigeria (CBN) in
experienced personnel and inadequate capital base were also of the problem. In
recent time we have a regulatory body (CBN) finance house experience in the
society but still management teams and board of directors cause major
problems in banking sector.
Banks face other problems such as integrity factor location factor and
technological factor among other. There also exist conflict of objective in the
commercial banks. He political instability and the global economic recess
affected the commercial banks negatively.
STATEMENT OF THE PROBLEM
In Nigeria today the incidence of distress in the banking sector is not more
surprise news to the general public. The causes and the factors responsible for
the distress are numerous. Every body tries to clip in this own ideal of the
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causes of the malaise in banking but there has never been a solution to the
problem. This research therefore tends to find out the factors responsible for
the problem in Nigeria commercial bank. This paper is aimed at identifying the
problems associated with commercial banks using united banks for Africa
(UBA) and African bank. The paper will find out how he board of director with
the management team brings problem to banks as well a he effect of integrity
location and technological factors and government interference on bank.
This paper promises an overhaul of the commercial banking system, which
involves default forgeries frauds and destruct.
PURPOSE OF STUDY
This work aims at investigating the problems which commercial banks in
Nigeria face with a view to ascertaining how for the commercial banks have
been fanny as regards these problems and to recommended appropriate
remedies that would minimize the problems. It is also an attempt to suggest
ways in which these problems can be avoided in the futures taking into
consideration the adage that say “prevention is better than cure”
In other word the researcher intends to examine the roles performed by the
commercial banks and to carry the necessary evaluation.
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SIGNIFICANCE OF THE STUDY
This work will be of immeasurable worth to the banks, as it will show how far
they have been coping a part from suggesting solution to these problems facing
them.
It will be useful to individuals and government who may wish to go into
banking business in knowing and taking connective measure in commercial
banks business.
Finally this research work will serve as an addition to the existing literature in
the area of banking finance and policy programme to enhance economic
development of the country and the world large. Besides it will serve as
reference for future researchers on the field.
STATEMENT OF SUB PROBLEM
The research is meant to address the following research question.
1.
Do the incompetence of the board of director and the management
team bring problem to the bank?
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2.
Do the political instability and the global economic recess affect the
commercial bank?
3.
Do flouting of he ethic of profession affects the commercial banks?
4.
Integrity location factor and technological factor affect the
commercial bank?
There are the questions affects by the research
STATEMENT OF HYPOTHESIS
Null (H0) and alternative (H1) Hypothesis
A null hypothesis is one which state that there is no difference between two
situation that are being compared and can therefore be disapproved by an
alternative observation which is the best way of setting up a hypothesis the
alternative hypothesis with be accepted.
The following assumptions are made which have to be proved in the course
of the study.
H0:
There are no problems facing commercial banks in Nigeria.
H1:
There are problems facing commercial banks in Nigeria.
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SCOPE AND LIMITATION OF THE STUDY
The united bank for African and African bank of Nigeria they are the banks
this research is carried out.
This work faced some problems of getting the appropriate officers of the
banks visited. Most managers were not on seat or were busy to attend to
customers and had very litter time to talk a researcher.
The research was also limited by the unwilling of managers or officers to
disclose important information do the project.
Finance was not to be left out this type of study requires adequate money
and time to enable the researcher obtain necessary data. In view of the
current economic difficulties in the country this problem was thus evident in
view of all these problems the researcher aim of study was achieved.
DEFINITION OF TERMS
a. Valuable:
Worth a lot of money.
b. Monetization:
To give cash obtained or being give out in an
economy.
c. Liquidation: Act winding up a bank because of the
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d. Distress:
The state of being in danger or difficulty and needing help.
e. Portfolio:
A set of investments owned by person bank
f. Fraud:
Criminal deception
g. Central bank:
Is usually a government owned bank, which help to
control and supervisor the entire monetary and financial system of a
country.
Deposit: Money in custody of bank the amount paid by customer on first
instatement.
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