Introduction
Historical Background Of Commercial Banking In Nigeria
The historical background of commercial banking in Nigeria can be traceable to early 1820, where the African banking corporation in Lagos established a commercial bank. These corporations did not last due to some limitation encountered as a result of banking habit of the people and consequently leased operation in 1890. However, in the same year. The British bank of West Africa (now know as first bank plc) was also in corporate in London and became operational in Nigeria in 1894. Moreover, this bank enjoyed absolute money of banking business in Nigeria a until 1916 when colonial bank was established. Due to the dynamic and aggressive operation of colonial bank, there was a reduction in the dominance of the BBWA (British banking of West Africa). In 1925 a consortium of three banks (banclays bank Anglo Egyptian bank and national bank of South Africa) took over the assets and liabilities of colonial bank and metamorphosed as banclays bank D.C.O. (dominion, colonial and over seas). Consequently, following the emergence of banclay D.C. O. (now on bank of Nigeria of plc) other expatriate bank of west Africa bank of America chase, mantiattan bank etc. it was observe that the expatriate interest and this led to the establishment of industrial and commercial bank in 1929 with the primary aim of taking care of the special banking interest of Nigeria entrepreneurs. Mean while this bank went into liquidation in 1930.
In additional of the indigenous bank were established which comprise of the Nigeria merchant bank (1931), national banking of Nigeria plc (1933), agbomagbe bank ltd (1945) African continental bank plc (1947). The indigenization decree of 1973, bought to an end of the operation of expatriate banks in Nigeria as the decree empowered the federal government to acquired 40% equity share of all expatriate banks.
Statement Of Study:
The task of this study is to identify the extent of challenges facing the Nigeria banking industry. The effect of these challenges to either the reduction or increasement of response time to her customer needs.
It is a well- known fact that the competition in the new generational banking activities is beginning to give concern to both rich and poor of this economy. Though attempts has been made by both government and private bodies in trying to look into this word “challenges” been faced by trying to meet up with task of answering new generational bank in the services multiple or universal been rendered by banks nowadays. However, though then central bank of Nigeria has also tried her best in look into this problem by the services she renders to these banks such debts. Management functioning, monetary function just to mention but few but still none of this aforementioned function seems to help the situation. Therefore, the so considered dynamic out of all which is the monetary function which has to such monetary control techniques which is as follows:
- Open market operation
- Bank rate
- Moral suasion
- Liquidity ratio
- Legal reserve ratio
- Special deposits.
But yet this efforts by the CBN (central bank of Nigeria) seen not to help the situation rather distress are increasing in the banks industry, as we earlier commented that our concerns is not really diverted towards bank distress or her survival rather we are considering the challenges faced by banks in Nigeria which distress can be given birth to by this challenges as the case may be.
For instance, just recently in the month of August 2005, it was saw tread in the financial news paper that some banks in Nigeria are about or experiencing distress signals in their activities / business which i consider is as a result of the challenges been faced. Efforts made by most banks in trying to meet the leaking gap involve in some illegal transaction with some wicked or 419 big men in Nigeria. Who have selfish interest and out there to enrich there self by all means no mater what it will cost and care who is been hurt.
Objective Of Study
- To find out the importance of challenges and the effect in the banking industry and sophistication of the business of new generation banking in the country.
- It helps in improving banking operation, competitiveness and productivity.
- It help to identifying the extent to which this challenges been faced by banking in Nigeria has contributed.
- Therefore, the study to find out an over view of this challenges to the various services being rendered in our bank.
- It also attempts to find out the various problems that could be experience with this talk “challenges facing Nigeria banking industry.
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