THE EFFECT OF GLOBALIZATION ON BANKING OPERATION IN NIGERIA ( A CASE STUDY OF FIRST BANK NIGERIA PLC)


THE EFFECT OF GLOBALIZATION ON BANKING OPERATION IN NIGERIA ( A CASE STUDY OF FIRST BANK NIGERIA PLC)

 CHAPTER ONE

1.0       INTRODUCTION

Banking in Nigeria was carried out devoid of any electronic devices until the middle of 1980s. The operations of bank were mostly manual and fraught with attendant problem of poor services delivery.

The era of new generation bank brought into the banking industry competition and need to provide quality services to the banking public.

This brought about the need for some form of automated system. Kyari (2002), acknowledged this fact when he admitted that banks began to invest in computer for basic office in automation and processing, and then later extended to provision of banking services.

This era also brought about massive installation of computer system and the introduction of the first set of electronic banking system devices such as automated teller, machine (ATM) to the banking public with the establishment of more bank in the early 1990s that led to the integration of banking system and ledger bank were replaced by computing system.

The growing need for better services made it mandatory for banking to develop faster settlements among banks that lead to the funding of Nigerian inter-settlement scheme- granting owned by banks.

The central bank in response to this also began the computerization of its system and processes. The introduction of the Magnetic Ink Character- Recording (MICR) check in the number of days it takes to clear a cheque through the Nigerian banking system.

The Magnetic Ink Character Recording (MICR) was yet to be very successful through by middle of 1990s, most banks had introduced some forms of automation or computerization in their operation.

Before financial globalization become popular, financial liberalization efficiency in the financial sector, many African countries embarked on financial liberalization reforms as part of their recommend.

Structural Adjustment Programme:

The crucial message of the financial liberalization, thesis (Mekinnum 1973), show that it is lack of competition that bring inefficiency to this sector, interest rate liberalization is a first step, but it is recognized that this alone is not likely to generate competition in the market because of the already oligopolistic nature of it.

Consequently, not only is there a need to increase the number of players in this market for which a country may be required to go beyond its own domestic boundary.

To increase the number of players there is need to remove entry restrictions, so that non- financial intermediaries as well as foreign banks can enter the market easily. In order to top a large post of savings, there is a need, not only to remove control, but also to relax laws relating to takeover and merging activities.

This implies that there is need to liberalize the external sector of the bank sector. Forced with the gravity of financial crises that occurred in several countries between 1994 and 2002, a number of questions have been raised regarding the underlying basis of financial globalization especially cross-boarder capital movement.

1.1 BACKGROUND OF THE STUDY

The background of this study is to evaluate the effect of globalization in banking operation in Nigeria with particular reference to First Bank Nigeria Plc, Kaduna, Kakuri branch Kaduna South.

The specific objectives of this study are as follows:

1.   Io assess the extent at which globalization has influenced services delivery in the banking sector in Nigeria.

2.   To examine how globalization has influenced banking operations in Nigeria whether positively or negatively.

3.   To examine the extent at which globalization has influenced the management of banking industry in Nigeria.

1.2 STATEMENT OF THE PROBLEM

The provision of quality services has been the major problem facing the Nigerian banking system.

The Nigerian banking customers are becoming more demanding in terms of quality services. Some of the problems facing the Nigerian banking operations are as follows:

I.             Time spent when collecting cash from the bank.

II.           It takes some days before funds can be transferred from branch of the bank to another.

III.          It takes quite some times before cheque are being cleared.

IV.         Value data is not efficient in the banking sector.

All these problems need to be addressed so that banking operations could be more, efficient.

1.3 PURPOSE OF THE STUDY

The purpose of the study is to evaluate the effect of globalization on our banking operation in Nigeria with particular reference to First Bank Nigeria Plc, Kaduna, Kakuri branch, Kaduna South.

1.4 SIGNIFICANCE OF THE STUDY

The study shall serve as a reference point to students of banking and finance, bank practitioners and policy formulation in banking industry.

Through this study the inefficiency that exist in the banking operation are thrown opened to the public and researchers in the discipline. It also helps to understand how globalization could bring efficiency in services delivery to customers through the introduction of modern technology into banking operations.

Through the study, one shall be able to know why First Bank Nigeria Plc, is performing better than some other Banks in Nigeria through the adoption of new technologies in its operations.

1.5 RESEARCH QUESTIONS

The study used primary data that were generated through the administration of questionnaires and oral interviews.

Sample population from staffs and customers of First Bank Nigeria Plc.

The statistical technique used in the study is chi-square (X­­­­­­­­­­­­2) and t-test was used.

1.6 STATEMENT OF HYPOTHESIS

H0: Globalization of banking operations has not improved services delivery of First Bank Nigeria Plc.

H1: Globalization of banking operation has improved services delivery of First Bank Nigeria Plc.

1.7 DELIMITATION OR SCOPE OF THE STUDY

The scope of this study is that, it focused on the effect of globalization on banking operation in Nigeria.

The study specifically examines the effect of globalization on First Bank Nigeria Plc.

The limitation of the study is that the researcher was not been able to visit all branches of the bank in the country due to financial constraints and time availability for the study.

1.8 DEFINITION OF TERMS

Ø Banking: It is a bank business whose principle operations are concerned with the accumulation of the temporary, idle money of the public for advancing some to others for expenditure.

Ø Bank Transfer: Is a method of making payments in which payment made at any branch of any bank for the account of a payee with an account at any branch of the same bank or another bank.

Globalization: Is the integration of trade relation and production, the decision across the globe by economic agents who employ investment capital and technology around to take advantage of environments where there is competition and which can manifest to a higher return

Globalization can be defined as the process of shifting autonomous economic into the global market or the systemic integration of autonomous economies into global system of production and distribution.

This invariably involves an efficient and dynamic financial sector that is necessary for the facilitations of intermediation and exchange of goods and services.

For example, inefficient payment system has constituted a major issue, as it has negative implications on other aspects of the economy. The incidence of long queues for cheque encashment, under delays in clearing of cheque as well as other banking transaction increases cost of business transaction.

This is because as the economy develops an automated payment system backed by modern technologies, it is required to replace the manual one that can no longer cope with the changing technology. Similarly, inefficiency in capital market operations as evidence in high transaction cost and long time delivery of services are inimical to economic buoyancy. Algiers (2002)

Globalization is therefore, the decoupling of space and time through which instantiations communications, knowledge and culture can be shared around the world simultaneously.

Geographical distance becomes a factor of diminishing importance in the establishment and maintenance of cross-boarder economic, political and socio-cultural relations in a process. The left critics defined globalization as world wide drive towards a globalize economic system dominated by cooperate trade and banking institutions that are not accountable to democratic processes or national government globalization which has for centuries developed through integration, trade, knowledge spill-over and cultures, is now propelled by the spectacular expansion of banking operation. Almost all the aspect of banking operation and values are affected by the operation all over the world, more than ever before, to differentiate an alternative view.

Immediate and concrete the impact of technological advancement in communication has just begun since the creation of global market place in countries.

2.1 HISTORY OF THE BANK The bank was founded in 1894 by a shipping magnet from Liverpool by the name Sir Alfred Jones. The bank commenced as a small operation in the office of Elder Dempster and the Company in Lagos, the bank was incorporated as a limited liability company on March 31st 1894 with its head office in Liverpool England.

It started business under the corporate name of the Bank for British West Africa (BBWA) with a paid up capital of 12,000 pounds, sterling after absorbing its predecessor, the African Banking Corporation, which was established earlier in 1892. This signaled the pre-eminent position that the bank was to establishing the banking industry in West Africa. In the early years of operations of bank recorded an impressive growth and worked closely with the colonial government in performing the traditional function of Central Bank, such as issue of specie in West African sub-region. To justify its West African coverage a branch was established in Accra Gold Cost (now Ghana) in 1898.

These marked the genesis of the bank in international banking operation. The second branch of the Bank in Nigeria was in the old Calabar in 1900 and two years latter services were extended to northern Nigeria.

.

THE EFFECT OF GLOBALIZATION ON BANKING OPERATION IN NIGERIA ( A CASE STUDY OF FIRST BANK NIGERIA PLC)



TYPE IN YOUR TOPIC AND CLICK SEARCH.






RESEARCHWAP.NET

Researchwap.net is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. Researchwap.net guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • "Researchwap.net is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.net" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.