GLOBAL FINANCIAL MELTDOWN AND ITS EFFECTS ON NIGERIA BANKING SECTOR (A CASE STUDY OF INTERCONTINENTAL BANK AND FIRST BANK PLC)
GLOBAL
FINANCIAL MELTDOWN AND ITS EFFECTS ON NIGERIA BANKING SECTOR (A CASE
STUDY
OF
INTERCONTINENTAL BANK
AND FIRST BANK PLC)
ATTENTION:
BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW,
PLEASE READ THE INFORMATION BELOW.THANK YOU!
INFORMATION:
YOU CAN GET THE COMPLETE PROJECT OF THE TOPIC BELOW. THE FULL
PROJECT COSTS N5,000 ONLY. THE FULL INFORMATION ON HOW TO PAY AND GET THE
COMPLETE PROJECT IS AT THE BOTTOM OF THIS PAGE. OR YOU CAN CALL: 08068231953,
08168759420
TABLE OF CONTECT
Title Page i
Approval page ii
Dedication iii
Acknowledgement iv
Table of contents v
Abstract
ix
CHAPTER ONE
INTRODUCTION 1
1.1 Background of study 1
1.2 Statement of the problem 6
1.3 Purpose of the study 7
1.4 Significance of the study 8
1.5 Research Question 9
1.6 Scope of the study 9
1.7 Definition of terms 10
CHAPTER
TWO
LITERATURE REVIEW 12
2.1 The Origin of Global Meltdown 13
2.2 The coming economic meltdown in Nigeria 15
2.3 Causes of Economic Recession 22
2.4 Nigeria Banks and Capital Market 27
2.5 Nigeria: How Economic Meltdown is
affecting 35
2.6 The Global Economic meltdown and
Banking
in
Nigeria 39
2.7 Panic comments of the banking sector 48
2.8 Summary of literature review 51
CHAPTER
THREE
3.0 Research Methodology 53
3.1 Brief outline of the study 53
3.2 Design of the study 53
3.3 Area of the study 54
3.4 Population of the study 54
3.5 Sample of the study 55
3.6 Instrument for data collection 55
3.7 Validation of instrument 56
3.8 Distributions and retrieval of the instrument
56
3.9 Method of data analysis 57
3.9 Method of data analysis 57
CHAPTER
FOUR
PRESENTATION
AND DATA ANALYSIS 58
Discussion
of the findings 68
CHAPTER
FIVE
5.1 Summary of findings 71
5.2 Conclusion 73
5.3 Recommendation 74
5.4 Suggestion for further research 75
5.5 Limitation of the study 76
References 77
Appendix 79
Questionnaire 80
ABSTRACT
BOTH DEVELOPED AND
DEVELOPING COUNTRIES AROUND THE WORLD HAVE BEEN WORRIED OVER THE EFFECT OF THE
GLOBAL FINANCIAL CRISIS ON THEIR LOCAL ECONOMICS. ONE WOULD HAVE NOTICED THAT NIGERIA IS NOT
EXEMPTED FROM THE CRISIS. THIS IS THE MAJOR REASON WHY THIS PROJECT WAS
EMBARKED UPON TO ASCERTAIN THE EFFECTS OF THIS GLOBAL FINANCIAL CRISIS ON OUR
ECONOMY BUT WITH THE BANKING SECTOR AS OUR CASE STUDY. THE PROBLEM CAUSED BY
THIS GLOBAL FINANCIAL CRISIS ON OUR ECONOY AND ESPECIALLY THE BANKING SECTOR
CANNOT BE OVER EMPHASIED. THE PROBLEMS TYPICALLY INCLUDE INCREASE UNEMPLOYMENT,
DECREASED CONSUMER AND BUSINESS SPENDING, DECLINING STOCK PRICES, DEPRECIATION
OF NAIRA AGAINST FOREIGN CURRENCIES, SHARP FALL IN THE PRICES OF SHARES AND
MANY MORE. THE PURPOSE OF THIS RESEARCH IS TO EVALUATE THE EFFECT OF THIS
GLOBAL FINANCIAL CRISIS ON THE BANKING SECTOR AND ECONOMY AT LARGE. FOR THE
PURPOSE OF THIS, THIS RESEARCH, THE METHOD OF QUESTIONNAIRE WAS USED FOR DATA
ANALYSIS WAS PERCENTAGE FORMULA AND ANY PERCENTAGE THAT IS MORE THAN FIFTY (50)
PERCENT IS ACCEPTED WHILE BELOW IS NOT. THE FINDING WERE THAT THE CRISIS HAS
REALLY AFFECTED THE NIGERIAN BANKS NEGATIVELY AND THE NIGERIAN STOCK EXCHANGE
AS WELL, BECAUSE OF THE TREND CONTINUE, I AM AFRAID MOST OF THEM WILL GO OUT OF
THE BUSINESS. RECOMMENDATION WAS ALSO GIVEN THAT THE ECONOMY SHOULD BE
DIVERSIFIED AND THAT THE ACTIVITIES OF THESE BANKS SHOULD BE CHECKED TO PREVENT
MISMANAGEMENT.
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
Without being told every one whether
educated or not would have understand by now that something is terribly wrong
with the economy of the nations of the world, the center in the media of every
nation both national and international. The pertinent questions one may ask
are, what is it all about? How did it come about? How are we affected as an
individual and as a nation? How is one nation and the world responding to it?
How can we find our way out of the problem caused by the crisis?
Economic meltdown is a situation
where the economic activities of a nation is totally paralyzed and recessed.
According to Onuigbo (2007) economic
meltdown could be called economic “go slow” just as traffic I am bring vehicle
movement to a half, so does economic meltdown literally bring an economy to a
stop. The resultant effects are many.
Broadly defined, a recession as a
downturn in a nation economic activity. The consequences typically include
increased unemployment, decreased consumer and business spending and declining
stock prices.
Improvement in technology has brought
the entire world into a “global-village” this is the reason for the fast spread
of the current global economic meltdown across the nations of the world.
ORIGIN OF THE CURRENT
GLOBAL ECONOMIC MELTDOWN
There is a wide view that the current
crunch all over the world has its root from the mortgage market crisis in the
united state of America (U.S.A) between 2005 and 2006, the mortgage market in
the united state was highly fulled by what they refer to a “sub-prime lending”
sub-prime lending is the practice of lending, mainly in the form of mortgages
for the purpose of residence to borrowers who do not meet the usual criteria of
borrowing unfortunately, bad debt become rampant due to borrowers inability to
repay the loan, thus lead banks rite finding a possible means of reducing their
leverage ratio by raising more money.
As a stock brokers found out that the
bad loans the banks and other lending institutions were carrying, they pulled
their money from the banks. And the markets become worse. This has since frozen
the American financial system and like a wide fine spread to the four corners
of the earth.
The effects of this ongoing global
economic crisis on the Nigerian economy especially the banking sector cannot be
over emphasized. The current situation of our economy is a wind that blows no
one good, in his address to the ministers at the first federal executive
council meeting in 2009, late president Yar’Adua overtly admitted that the
impact of global financial meltdown had already been notice in Nigeria
(internal source).
The effect has spread to Europe, Japan,
Asia, Africa,
Latin, America and other parts of the
world. An estimated US $1.7 trillion in bail out funds has already been
committed but we are yet to see the end of the tunnel not to talk of any light
in it. According to a report the world stands in need of a staggering US $4
trillion to fully resolve this crisis. Both developed and developing countries
around the world have been worried over the effect of the global financial
crisis on their local economics.
Hence is the current situation. At
present most of the revenue funds of the Nigeria comes from the oil. Nigeria sells
its oil to the west and uses that money to drop its existence. Nigeria does
not generate independence revenue to maintain the Nigeria economy as a result of the
financial meltdown.
1.2 STATEMENT OF THE PROBLEM
From the background of the study
above, it is evidence that the ongoing financial crisis has really affected our
banking sector and the economy generally. Before now, the prices of oil
continue to dip from a high of more than $140 per barrel mid year of 2008 to
40, which is below of what is budgeted in the year budget.
The global economic environment is
changing turn oil in the global financial market is deepening into recession
across the world our recent gains in economic growth and macro economic stability
may be unreaged by sustained fall in oil prices.
Nigeria is a single product economy, so
whether money we get as a nation is determined by the price of oil so it very
clear that this is an austerity priority the implication for banking industry
is that the liquidity will be greatly impacted.
1.3 PURPOSE OF THE
STUDY
The purpose of this research is to
evaluate the effect of global financial crisis on the banking sector and the
economy at large.
For proper evaluation and the effect
especially the study is to examine
1.
The
origin of global financial crisis
2.
The
causes of global financial crisis
3. The level of its
effect on our economy specially the banking sector
4. The individual
effect in terms of employment of their financial crisis.
1.4 SIGNIFICANCE OF THE STUDY
The essence or important of this
research is to explore the effect of the current global financial crisis and to
also proffer an everlasting solution to it in form of recommendations.
At the end of
this research, both those in government and those in private organization
(banking sector) will benefit from it because many suggestion will be made that
if well followed, will remedy the effect of this financial crisis in their
various fields.
1.5 RESEARCH QUESTIONS
For proper investigation of the
subject matter, the following research questions are used to guide the
researcher
1. What is the
beginning of this financial crisis?
2. What are the causes of this global
financial crisis?
3. What are the effect on the banking sector
of our economy?
4. What are the individual effects of this
financial crisis based in the employment and others and solutions?
1.6 SCOPE OF THE STUDY
The research is meant to deal with
the effect of global financial crisis on Nigeria especially the banking
sector of the economy. Be that as it may, some selected banks in Nigeria will
guide us to achieve that.
This study is limited to
intercontinental bank plc and First bank all operating in Nigeria banking
sector of the economy.
1.7 DEFINITION OF TERMS
In the process of writing this
research some technical terms were used for simplicity, those terms that may
hamper the readers understanding of the report are explained, as they are meant
to be understood by the reader meltdown a serious accident in which the control
part of a nuclear reactor mew’s causing harmful radiation to escape
RECESSION- A difficult time for the economy of
a country than usual and more people are unemployed.
MORTGAGE – A legal agreement by which a bank
or similar organization lends you money to buy a house etc and you pay the
money back over a particular number of years.
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you
will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#5,000) into our bank Account
below, send the following information to
08068231953 or 08168759420
(1) Your project topics
(2) Email Address
(3)
Payment Name (If you made a transfer)
(4)
Teller Number (If you made a direct deposit)
We will send your material(s) after we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
Our other research websites:
Comments
Post a Comment