The Effect of Insurance Industry in Promoting Banking Services in Nigeria A Case Study of Skye Bank Enugu

The Effect of Insurance Industry in Promoting Banking Services in Nigeria

Project / Seminar Material
Reference ID: PS-8156-TM

DEDICATION

This research material titled “The Effect of Insurance Industry in Promoting Banking Services in Nigeria” is dedicated to God for his enabling grace, and to all computer enthusiasts who contributed to make life a pleasant experience during my research documentation.

ACKNOWLEDGEMENT

I extend my sincere gratitude to all those who contributed to the completion of this project. Special thanks to my Supervisor (Name of your Supervisor), the Head of Department (Name of your HOD), the Lecturers in the department of Insurance, Book Authors and Profound Scholars of existing or related project material on “The Effect of Insurance Industry in Promoting Banking Services in Nigeria” for their invaluable guidance, support, and expertise throughout the journey.

I am also grateful to your study area (mention any funding organizations, if applicable) for their financial assistance. This research would not have been possible without the encouragement and assistance of some stakeholders (mention any mentors, teachers, or colleagues). Additionally, I would like to acknowledge the understanding and patience of my family and friends during this endeavor. Your unwavering support has been a constant source of motivation. Thank you all for being part of this meaningful endeavor.

The Effect of Insurance Industry in Promoting Banking Services in Nigeria (A Case Study of Skye Bank Enugu)

TABLE OF CONTENTS

PRELIMINARY PAGES

CHAPTER ONE

  • Introduction
  • 1.1 Background Of The study 1
  • 1.2 Statement of problem 4
  • 1.3 Objectives of the study 5
  • 1.4 Research Questions 5
  • 1.5 Research hypothesis 6
  • 1.6 Significance of the study 7
  • 1.7 Scope and limitations of study 8
  • 1.8 Definition of operational terms 9
  • Reference 16

CHAPTER TWO.

  • Review Of Related Literature.
  • 2.1 An overview 17
  • 2.2 Historical background of Skye Bank Nigeria. 19
  • 2.3 Immediate causes of bank failure in Nigeria 21
  • 2.4 Factors affecting Nigeria banking system 24
  • 2.5 Fraudulent attitude believe 25
  • 2.6 Social influence 26
  • 2.7 High rate of illiteracy in the society 26
  • 2.8 Nigeria deposit insurance corporation (NDIC) policies towards bank development 27
  • 2.9 Roles of insurance industry in promoting services 29
  • 2.10 General effect on insurance activities in Nigeria banking services 33
  • Reference

CHAPTER THREE

  • Research Methodology And Design.
  • 3.1 An overview 37
  • 3.2. Source of data 37
  • 3.2.1 Primary data 38
  • 3.2.2 Secondary data 38
  • 3.3 Population of the study 39
  • 3.4 Sample size 39
  • 3.3 Instrument used in determining the sample size 40
  • 3.6 Validity of the instrument used 41
  • 3.7 Method of data presentation and analysis 42

CHAPTER FOUR

  • Data Representation And Analysis
  • 4.1 An overview 44
  • 4.2 Data representation and analysis 44
  • 4.3 Testing of hypothesis 59

CHAPTER FIVE

  • Summary Of Findings, Conclusions And Recommendations
  • 5.1 Summary of findings 65
  • 5.2 Conclusions 66
  • 5.3 Recommendation 67
  • BIBLIOGRAPHY 69
  • APPENDIX 70
  • Questionnaires 71

ABSTRACT

The aim of this research study is to identify The Effect of Insurance Industry in Promoting Banking Services in Nigeria. (A study of Skye Bank Enugu Metropolis). The objectives of this research work is to examine and analyze the success of banking business in Nigeria and the roles insurance sector play in promoting their services and also to identify the various problems and challenges facing Nigeria banks.

The Related literature review of this work include; The historical background of skye bank Nigeria . For a successful completion of this research work, the researcher made use of both primary and secondary methods of data collection of information gathering. Primary data were collected through questionnaire, administration, oral interview, and personal observations. Secondary data were collected through journals, textbooks, lectures, notebooks and internet. The data collected were presented in table and analyzed with simple percentage while the hypothesis stated were tested with chi-square.

The summary of findings made by the researcher include the following: it was discovered that insurance industry has positively influenced the services of Nigeria banking industry. In conclusion, the future and success of Nigeria banks lies mainly in the hands of insurance industry; therefore, Nigeria banks needs insurance industry to survive. The researcher recommends that Nigeria government should support the activities of insurance industry in order to boost the effectiveness of Nigeria banking services.

The Effect of Insurance Industry in Promoting Banking Services in Nigeria (A Case Study of Skye Bank Enugu)

CHAPTER ONE

Introduction

1.1 Background Of The Study

Nigeria as a developing country has been grappling with the realities of development process, not only politically and socially but also economically. Since economic development is perceived as a multi-dimensional process, it requires not only capital and technology but also attitude and the creation of the institutional structures. It also includes special protection of the financial institutions.

The banking system has thus been singled out for this special protection because of the vital roles banks play in an economy especially in the process of economic development. According to C. Arthur Williams jr (1992), the establishment of insurance protection and cover through Nigeria Deposit Insurance Corporation (NDIC) was informed by economic circumstances and by a number of other considerations. The economic circumstances involved the new economic policy of government, the bitter experience of prior bank failures in Nigeria and the lessons from other countries with bank deposit insurance scheme.

The distress in the banking system often precipitate other crises and this has necessitated regulatory and supervisory authorities to take a series of actions and intervention in response to these problems.

The emergency of Nigeria Deposit Insurance corporation into financial sector of the Nigeria economy was borne out of necessity and need to check the incessant rise and fall of indigenous banks, Thus, the objectives of the Nigeria Deposit Insurance corporation are to protect bank depositors, ensure stability in the industry, encourage healthy competition among banks at foster, informed risk taking by insured institution, grant financial assistance to banks experiencing difficulties among others.

Insurance industry also stand as a risk transfer mechanism that can also provide cover and protection to some certain uncertainties that can negatively affect Nigeria banking services. According to J.O Irukwu (1999), Insurance cover risks like:

  1. Loss of building and contents to fire and special perils
  2. Loss of cash-in-transit and cash-in-safe
  3. Loss or break down of computers and other business machines
  4. Loss due to infidelity of employees
  5. Loss due to bad debts
  6. Theft in the business premises
  7. Loss of key employees
  8. Loss due to professional negligence

The researcher in this research work was prompted by the curiosity to know the challenges facing Nigeria banking and how much insurance industry has contributed to tackle and solve those challenges.

1.2 Statement Of Problems.

The under listed problems are what led to this research:

  1. Liquidation of banks
  2. Weakness of internal control
  3. Inconsistency in monetary and banking policy
  4. Fraudulent and unprofessional conduct of bank staff, depositors and customers

1.3 Objectives Of The Study

  1. To determine the effect of insurance industry on bank liquidation in Nigeria.
  2. To evaluate the extent of weakness of internal control system in Nigerian banking industry.
  3. To examine the impact of inconsistency in monetary and banking policy.
…

CHAPTER TWO

2.0 Literature Review

2.1 Introduction

This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

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