The Impact of Improved Capitalization on Nigerian Banks Lending Rate

The Impact of Improved Capitalization on Nigerian Banks Lending Rate

Project / Seminar Material
Reference ID: PS-13102-TM

DEDICATION

This research material titled “The Impact of Improved Capitalization on Nigerian Banks Lending Rate” 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 Accountancy / Accounting, Book Authors and Profound Scholars of existing or related project material on “The Impact of Improved Capitalization on Nigerian Banks Lending Rate” 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.

TABLE OF CONTENTS

PRELIMINARY PAGES

CHAPTER ONE

INTRODUCTION

    CHAPTER TWO

    LITERATURE REVIEW

    • 2.1 Introduction
    • 2.2 Conceptual Review
    • 2.3 Theoretical Framework
    • ⋮
    • 2.4 Empirical Studies

    CHAPTER THREE

    RESEARCH METHODOLOGY

    • 3.1 Introduction
    • 3.2 Research Design
    • 3.3 Population of Study
    • 3.4 Sampling and Sampling Technique
    • 3.5 Validation of Research Instrument
    • 3.6 Method of Data Collection
    • 3.7 Method of Data Analysis
    • 3.8 Questionnaire Administration
    • 3.9 Ethical Consideration
    • 3.10 Statistical Analysis

    CHAPTER FOUR

    DATA ANALYSIS, RESULT AND DISCUSSION

    • 4.1 Introduction
    • 4.2 Presentation and Analysis of Data
    • 4.3 Re-statement of Research Questions
    • 4.4 Test of Hypotheses
    • 4.5 Discussion of Findings

    CHAPTER FIVE

    SUMMARY, CONCLUSION AND RECOMMENDATION

    • 5.1 Introduction
    • 5.2 Summary of Findings
    • 5.3 Conclusion
    • 5.4 Recommendation
    • 5.5 Suggestion for Further Study

    REFERENCES

    APPENDIX A - “QUESTIONNAIRE”

    ABSTRACT

    Capitalization or capitalisation is writing a word with its first letter as a capital letter (upper-case letter) and the remaining letters in lower case in writing systems with a case distinction. The term is also used for the choice of case in text.

    Conventional writing systems (orthographies) for different languages have different conventions for capitalization.

    The systematic use of capitalized and uncapitalized words in running text is called “mixed case”. Conventions for the capitalization of titles and other classes of words vary between languages and, to a lesser extent, between different style guides.

    In some written languages, it is not obvious what is meant by the “first letter”: for example, the South-Slavic digraph “nj” is considered as a single letter for the purpose of alphabetical ordering (a situation that occurs in many other languages) and can be represented by a single Unicode character, but at the start of a word it is written “Nj”: only the “N” is capitalized. In contrast, in Dutch, when a word starts with the digraph “ij”, capitalization is applied to both letters, such as in the name of the city of IJmuiden. There is a single Unicode character that combines the two letters, but it is generally not used.

    The Impact of Improved Capitalization on Nigerian Banks Lending Rate

    CHAPTER ONE

    Introduction

    1.1 Background Of The Study

    Nigeria banking sector has experienced a boom-and-burst cycles in the past 20 – 25 years. After the implementation of the structural adjustment programme (SAP) in 1986 and de-regulation of the financial sector, new banks proliferated mainly driven by attractive arbitrage opportunities in the foreign exchange market (Heiko, 2007), but prior to the de-regulation period, financial intermediation never took off and even declined in the 1980s and 1990’s (Capirio and Klibiel).

    The sector was highly oligopolistic with remarkable features of market concentration and leadership but noted that there are ten banks that control more than 50% of the aggregates assets of the bank banking sector, more than 51% of the aggregate deposites.

    The sector characterized by small scale banks with higher overheads, low capital base averaging less than $10 million, heavy reliance on the government patronage and less making. Nigeria banking sector was still characterized by a high degree of fragmentation and low level of financial intermediation up to 2004.

    This research work is motivated by the need to look into the central bank (CB)’s recent reform (Capitalization) that employed certain measures to strengthen the Nigeria banking system by drastically increase the minimum capital requirement from N2 billion of N25 billion ($190 million US). Through review of relevant literatures, analysis of policy documents official report and economic information on the banking sector, it became evident that the capitalization of bank led to a remarkable reduction in the number of banks from 89 to 25 by merge, acquisition, initial public offer and other means. The research work concludes that bank capitalization has resulted in making bank more efficient and reliable and also, their intermediary potentials have also been revised.

    1.2 Statement Of Problem

    Recapitalization of the Nigeria banks which started in 2004, has been a great advantage to the Nigeria economy. Before that, there were many Nigeria banks that had weak capital bases. This resulted in frequent bank burst and the low capital requirements also meant that important men could and did not set up public banks which they ran with total disregard for the minority shareholders. Banks on their own could not carry their primary function of lending because of liquidity problem. This therefore put the economy in adverse economic and financial problem. Banks at this time were running at in increase lending rate between 25 – 27%, thereby making credit to the real sector difficult. Industry operators attributes this to high operating cost occasioned by decay infrastructure. The implication is that the prices of goods and services are on the rise with lower disposable income. Consequently producers are facing resistance from consumers who have cut down significantly on consumption. This development poses a serious problem to the bank lending as they need to grow their loan portfolio to be able to compete with emergency market peers.

    1.3 Objectives Of Study

    Bank capitalization will go a long way in enhancing economic growth in Nigeria and also in the banking and financial sector of the nation.

    Hence, the fundamental objective of this study are:

    1. To asses the implication of capitalization on the banking industry
    2. To examine the impact of capitalization on Nigeria banks
    3. To asses the state of Nigeria banks before capitalization
    4. To identify the benefits of bank capitalization
    5. To identify the effect of bank capitalization on Nigeria, economy at large.
    …

    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 …

    Summary Headlines for The Impact of Improved Capitalization on Nigerian Banks Lending Rate