Download or read book Change and Consolidation in the Nigerian Banking Industry written by Chuma Emmanuel Okafor and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In an attempt to correct economic shortfalls, authorities in Nigeria deployed consolidation as the main policy instrument in the 2004-2006 reform of the banking industry. The Central Bank of Nigeria drew lessons from similar challenges faced by Malaysian and Indonesian authorities. Nigerian banks were given an 18 month window, to achieve an increased minimum capital base of N25 billion. To survive, banks could either raise the new requirements on their own or engage in mergers or acquisitions. The process of consolidation resulted in the reduction of banks from 89 to 24 and the emergence of three categories of banks namely: Stand alone, Common ownership, and Common interest banks. Primarily, this study examines change management practices of senior bank managers directly involved in implementing consolidation in Nigeria, and the impact of consolidation on credit availability to the private sector. Aggregate secondary data on the Nigerian banking industry from 2001-2009 were analysed and used to inform in-depth semi-structured interviews with thirteen senior bank managers and a respected independent financial analyst. Mixed methods were used to conduct further analysis. A conceptual framework was developed through an extension of Pettigrew's 1988 model, while a modified Berger et al. 1998 model was deployed to test credit availability. Findings indicate that most aspects of organisational change were successful, but a lot more needs to be done to improve cultural integration and employee motivation. The successes achieved by Nigerian banks, resulted in higher levels of credit being made available to the private sector. There is, however, scope for further improvement to be made. For example, senior bank managers should deploy a more holistic approach to planned change, and there should be an improved collaborative approach between the government and private sector which could help enhance alternative credit delivery channels such as micro finance firms, venture capitalists and business angels.
Download or read book Profound Effects of Consolidation Mergers on Bank Recapitalization written by Newman Enyioko and published by . This book was released on 2015 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Nigerian banking sector was highly oligopolistic with remarkable features of market concentration and leadership. The CBN reforms to consolidate the banking sector through drastic increase to N25 billion as minimum capital base has led to a remarkable reduction in number of banks changed their mode of operation and their contribution to the economy. This study through review of literature and data analysis explores the profound effects of consolidation/mergers on bank recapitalization: issues and challenges in the Nigeria banking industry and found that, the CBN decision has changed the market structure of the banking sector, increased the efficiency and reliability of the banks, created opportunities for financial institutions and market participants, and raised their intermediation potentials. It also became evident that for such strategy to be effective, Central Bank of Nigeria needs to make banks recapitalization a continuous exercise at interval of 5-10 years to catch up with inflation and happenings in other parts of the world. It is equally important to establishing branches by mega banks in the rural areas of the country so as to ensure adequate access to credit facilities and other services.
Download or read book The Nigerian Banking Sector Reforms written by S. Apati and published by Springer. This book was released on 2015-12-11 with total page 221 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is the first comprehensive book on the politics and economics of financial sector consolidation in an emerging market in West Africa. It draws on the author's twenty years experience working with multinationals in this oil-rich zone, to address key issues and examine banking reform in one of the world's fastest-growing economies.
Download or read book The Power of One Man written by Ray Echebiri and published by Safari Books Limited. This book was released on 2024-07-25 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Power of One Man is a lucid account of the Professor Chukwuma Soludo-engineered banking consolidation - its launch and implementation, and how it transformed the Nigerian banking industry. The take-off point of the narrative is a vivid account of the liberalisation of the national economy, the consequent deregulation of the banking industry, and the resultant proliferation of banks. The deregulation of the banking industry resulted in the mushrooming of banks all over the place; at some point, well over 100 banks dotted the Nigerian banking space. By 2004, however, the number of banks in the country had shrunk to 89, following the collapse of some of the banks. The crash of some of the banks in quick succession almost completely eroded public confidence in the country's banking system. Allowing this to continue was going to spell doom for the national economy. To arrest the situation and also transform the nation's banking industry, Soludo who was barely a month in office as Governor of the Central Bank of Nigeria (CBN) embarked on banking reforms that had all the trappings of a revolution. The prompting for the reforms was his discontent with the fragility and meagre capital base of most of the 89 banks that littered the Nigerian banking space, and their inability to drive the growth and development of the national economy at a rapid pace. The major objective of the reforms, therefore, was to transform the country's banking system to one that exudes stability, and populated by well-capitalised, strong banks that can champion the country's economic renaissance. Expectedly, the implementation of the consolidation agenda was not a walk in the park. The journey was tough and rough. But with Soludo's unflinching and total commitment to the programme, and the backing of his boss, President Olusegun Obasanjo, its success was as sure as night follows day. At the end of the 18-month timeframe set for the exercise, 25 banks emerged, all of them capitalised to the required N25 billion; some even went way above the N25 billion base capital. Thus, a new Nigeria banking industry was born. Since then, the industry has been growing by leaps and bounds. One significant objective of the banking consolidation was to see Nigerian banks fly Nigeria's flag in different countries of Africa and around the world. That has come to pass. Nigerian banks, especially First Bank, United Bank for Africa, Guaranty Trust Bank, Access Bank and Zenith Bank are everywhere dense in Africa. These banks are also bestriding the global financial markets like a colossus - their subsidiaries are competing favourably and operating profitably in different countries of the world. Certainly, the Nigerian banking industry envisioned in the 2004/2005 banking consolidation agenda is here.
Download or read book Consolidation and Recent Trends in the Nigerian Banking Industry written by and published by . This book was released on 2009 with total page 176 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Impact of Regulatory induced Consolidation on Banks Performance written by Ngozi Ihuoma Ibeji and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Post Consolidation Era of the Nigerian Banking Industry written by Obinna Izuchukwu Okafor and published by . This book was released on 2017-06-03 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Impact of Merger and Acquisition on Financial Intermediation written by Olufemi Saibu and published by . This book was released on 2020 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper examines the impact of bank consolidation on financial inter-mediation using data from the Nigerian bank industry from 2002 to 2010. Two models were specified and estimated: one for the lending activity and the other for the deposit activities. The model for lending activity has an interest rate on the loan as the dependent variable and deposit rate represents the dependent variable in the deposit model. The results showed that merger and acquisition, which was the main policy instrument for bank consolidation, has a significant effect on both lending and deposit activities of the banks in Nigeria. The result also shows that changes in the degree of average competition in bank markets proxied by the spread between interest rate among the banks is positive and significant in both the loan and deposit markets. This confirms the high level of price competition among the banks. The consolidation exercise had significant positive effects on both financial inter-mediation and especially on deposit mobilization. The study concluded though, the consolidation policy might have had other side effects, it has at least led to higher deposit mobilization, higher competition but however, it has led to higher cost of borrowing and spread between lending and deposit rates.
Download or read book Conference Proceedings written by and published by . This book was released on 2005 with total page 120 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Entrepreneurship in Africa written by and published by BRILL. This book was released on 2017-09-25 with total page 423 pages. Available in PDF, EPUB and Kindle. Book excerpt: Chapters in this book contribute to our understanding of the theory, structure and practice of entrepreneurship in diverse African countries. Case studies examined include: African multinational banks and businesses, female entrepreneurs, culture and entrepreneurship, finance and entrepreneurship and SMEs.
Download or read book Nigeria written by International Monetary Fund. African Dept. and published by International Monetary Fund. This book was released on 2013-05-28 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Financial Sector Stability Assessment on Nigeria discusses the macroeconomic performance and structure of the financial system. Although Nigerian economy experienced both domestic and external shocks in recent years, the economy continued to grow rapidly, achieving more than 7 percent growth each year since 2009. The performance of financial institutions has begun to improve, though some of the emergency anti-crisis measures continue to be in place. However, the regulatory and supervisory framework has gaps and weaknesses. In sum, the Nigerian economy has emerged from the banking crisis, and has the potential to enjoy an extended period of strong economic growth.
Download or read book Bank Consolidation and Productivity written by Muhammad Auwalu Haruna and published by . This book was released on 2014 with total page 188 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examined the impact of the government-induced banking consolidation on banks' productivity in Nigeria by analyzing changes in total factor productivity (TFP) between 2002 and 2011. The methodology adopted in carrying out the study is Data Envelopment Analysis (DEA) generated Malmquist Productivity Index (MPI). It was found that in spite of the fact that the changes are by fiat, TFP shows growth trends on the market average, market categories and individual bank levels. The result also indicated that both constant return to scale (CRS) and variable return to scale (VRS) technologies returned the same growth averages of 8%. This is an important indication that uniformly the market is operating with similar technology in information technology (IT) and computerization. It is therefore recommended that the deposit money banks (DMBs) and Central Bank of Nigeria (CBN) should enhance mass migration to the modern banking system largely through the reduced costs of financial intermediation to sustain the growth trends. The regulatory authority should also be concerned with desirable banking culture shifts not only to keep efficiency and productivity on upward trending, but in order to succeed in various monetary policies path-through. To this end, it is also recommended that currency outside the banking sector should be depleted to enhance banking culture towards zero productivity slacks with banks hovering around their most productive scale size (MPSS) threshold.
Download or read book Bank Consolidation a Tool for Improved Lending to Business Operators written by Collins Odu and published by . This book was released on 2012-02 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: The findings of this book proves that bank consolidation is a tool that can be used to enhance lending capacities to small and medium scale business operators. Small and medium scale businesses are the engines of growth in developing and developed economies and as such has to have enough funds to run smoothly. The book shows how the Bank consolidation exercise in Nigeria revolutionized the financial capabilities of banks for economic growth in Nigeria. Small and medium scale business operators all over the world will find this book useful in improving their business performance. Book will be useful to researchers, decision makers in the banking industry and government. Book will also be useful to international investors. It also serves as reference point for the academic environment in the field of management, banking and finance.
Download or read book Banking Reforms and Consolidation written by Wahab Babatunde Dabiri and published by . This book was released on 2007 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Post Consolidation Banking Crises written by Prof. Suleiman A. S. Aruwa and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The Nigerian banking system is undergoing a sector wide reform that will enable it to be part of the global trend in consolidation with opportunities of becoming strong, competitive and reliable. Evolving such a banking system in Nigeria requires a reform, of which recapitalization through mergers and acquisition forms a readily effective option. This paper has examined the post consolidation banking crises areas in the balance sheet components. The data used and the analysis are basically secondary and descriptive using cross-country empirical evidence and experiences available in documentations. The banking reform engenders opportunities and challenges for the banks and the regulators. Both the opportunities and the challenges have to be managed effectively to enable the banks and the Nigerian economy benefit from the full impacts of the consolidation exercise. The most outstanding challenge is that a post consolidation banking failure will be a disastrous consequence for the Nigerian economic system depending on policy options adopted in managing the balance sheet components and the regulatory role. The regulatory authorities need to re-engineer their regulatory and infrastructural bases in order to enable the banks perform to their optimum levels.
Download or read book Banking Sector Reforms and Consolidation in Nigeria written by Aishatu Hassana Adigun and published by . This book was released on 2008 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Emotional Intelligence and Successful Change Management in the Nigerian Banking Industry written by John Ugoani and published by . This book was released on 2017 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: Successful organizational change requires a supportive culture and competence development driven by exceptional leadership that can influence business strategy in allocating financial, human and material resources, processes and systems that focus on collaborative imperatives. Change management is the lubricant that oils the wheels of organizations in the race for competitive advantage. Many organizational change efforts face resistance mainly because of the method of implementation. Change Management involves the ability to communicate, influence, collaborate and work in harmony with colleagues. Emotional intelligence competencies allow organizational members to acknowledge the need for change, remove barriers, and enlist others in pursuit of new initiatives aimed at organizational success. Beginning in the late 1990s, banks in Nigeria embarked on change management through BPR that involved emotional intelligence competencies which saw the banking industry's shareholders' funds rising from minus N792m in 1996 to N1,935bn in 2011. The survey research design was used for the study, and data were analyzed to demonstrate the relationship between emotional intelligence and successful change management. It was found that EI has strong positive relationship with successful change management in the Nigerian banking industry.
