The Impact of the 25 Billion Recapitalization by the Central Bank of Nigeria on Commercial Banks

The Impact of the 25 Billion Recapitalization by the Central Bank of Nigeria on Commercial Banks

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Reference ID: PS-11829-TM

DEDICATION

This research material titled “The Impact of the 25 Billion Recapitalization by the Central Bank of Nigeria on Commercial Banks” 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 Banking and Finance (BF), Book Authors and Profound Scholars of existing or related project material on “The Impact of the 25 Billion Recapitalization by the Central Bank of Nigeria on Commercial Banks” 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”

    The Impact of the 25 Billion Recapitalization by the Central Bank of Nigeria on Commercial Banks

    CHAPTER ONE

    Introduction

    Central bank of Nigeria is the apex financial institution in Nigeria charged with the responsibility of maintaining fiscal and monetary. Stability in the economy. The CBN has its headquarters in Abuja (F.C.T) with some zonal offices in Lagos, Kaduna, Enugu and Ibadan. It is located in Enugu zone at Opara Avenue.

    In this study, the researcher’s mind it to know the impacts of the B25billion re-capitalization by the CBN on the commercial banks in Enugu state off Nigeria, also banks nation-wide.

    The researcher wants to know the problems that has caused this new directives also, assume the ways the commercial banks can take-up to meet up with the new directives. The researcher also, wants to know if this new directives by the CBN will help improve the banking and Nigerian economy.

    1.1 Background Of The Study

    The central bank of Nigeria was established in 1958 under the CBN act of 1958 which was repealed thereby reenacting the CBN act of 191 (decree No 24).

    The CBN owes its existence to the act and it was set up with certain cardinal objectives in mind, e.g (i) to issue legal tender currency in Nigeria.

    1. To promote monetary stability and a sound financial system in Nigeria etc. regulations often times take the forms of either rules or directive from the central bank and that is why it has been given the power to:
    2. From time to time, issue directives by circulars requiring each banks to maintain at all times in the form of cash reserves with the bank at its office a sum equal to a prescribed ratio of the bank deposit liabilities, etc section 39 (i).
    3. On the recommendation from the president of the deferral republic, determine what shall be the minimum paid up share capital of each category of banks. Section 9 (1).

    It has a management team headed by the governor of the bank, deputy governors and directors of the diverse sectors. The governor is an sever-able to the board of directors for its acts and decisions.

    Section 7

    1.2 Statement Of The Problems

    In this section, the researcher focused on the impacts of the N25 billion re-capitalization (new directive) by the central bank of Nigeria (CBN) on the commercial banks in Enugu metropolis and nation-wide.

    The re-capitalization is viable of yielding some positive reactions or effects on the commercial banks which are as follows:

    1. Globalization
    2. Merger & Acquisition and consolidation.
    3. Increased professional.
    4. Stable economy.

    According to CBN governor, Prof. Charles Soludo, We affirms that the re-capitalization is a more to strengthen the capital base and introduce multi functional face into the industry. January 4, 2005: This Day News.

    1.3 Objectives Of The Study

    The fundamental objectives that prompted the researcher to going into this topic are as follows:

    1. To know the reason why the central bank of Nigeria (CBN) came up with such directive (N25 billion re-capitalization).
    2. To find out how the commercial banks in Enugu state and nation-wide will raise or meet up with the new directives.
    3. To find out the impacts of the new directives on commercial banks.
    4. The re-capitalization, will it help Enugu state and the Nigerian economy?

    1.4 Significance Of The Study

    The significance of this study is to achieve a great success in contributing the little the researcher can, if not a great deal in expressing the impacts of the new directive (N25 billion re-capitalization) by the central bank of Nigeria on the commercial banks which will bring about an immense knowledge and enlightenments with particular reference to the banks in Enugu state.

    Hopefully thought, this research work will ultimately broaden the scope of the staffs and management of commercial banks in Enugu state. Also, bring about more noticeable contribution and enhancement to both headquarters and other branches nation-wide to know the benefits and impacts.

    Conclusively, though the researcher limited the study to Enugu state and banks, the result of the findings will be of great benevolence to all commercial banks in Nigeria likewise, students conducting similar research work on the same topic or related ones.

    1.5 Definition Of Terms:

    Impacts:

    This is the reaction or the drive of the policy on the financial transactions in the diverse levels of banks operating in the nation.

    Re-Capitalization:

    This is a policy majority by the central bank of Nigeria (CBN) which creates a gradual change in the nation.

    It is also the slight differences in bank’s capital base either higher or lower depending on the policy of the CBN.

    …

    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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