GLOBALIZATION AND PERFORMANCE OF THE NIGERIAN BANKING SECTOR
Abstract
This project work was focused on the impact of globalization on Nigeria banking sector and various theoretical and literature issues were discussed. An empirical force affects the Nigerian banking sector, using the ordinary least square estimation (OLS) techniques called the exact AR Newton Raphson method. Data collected were presented in tables and percentages for easy understanding. The findings revealed that there is no significant relationship between bank capital base and foreign private investment. Given the findings of this study, it was concluded that the compact of globalization has note only benefited Nigerian banks but has also created threat or challenge to Nigerian banks and policy makers. However, it was recommended that globalization promoting the provision of adequate and productive credit to users policy measures must be put into actions to gear up stakeholders towards reducing the negative impact of globalization on Nigerian banking sector.
CHAPTER ONE
INTRODUCTION
1.1Background to the Study
The role of the banking system as an engine of economic growth is appreciated by the functions, the constituency performs. The banking sector provides liquidity that services the needs of the economy, facilitates the mobilization of surplus funds from both domestic and foreign sources and optimally allocates such mobilized resources to deficit economic limits for product investment. The banking system also provides infrastructure for monetary policy transmission among other thing. In recent years the Nigerian banking sector has been hit by three major trends namely deregulation and privatization the introduction of new technologies and new products and the entry of new competitors. These trends were the outcome of forces of globalization.
According to Fajigbesi and Ozughalu (2003) globalization is face with some challenges which do affects the banking sector especially the immensely baking system from this a consensus has emerged in recent decades emphasizing the critical role of globalization in the process of Nigerian banking sector development.
Glottalization implies that there will be massive presence of foreign banks in Nigeria with the influx of foreign banks, there will be tremendous increase in the degree of competition in the degree of competition in the Nigeria banking sector. Indeed, the banking sector in Nigeria is bound to face global financial system, the survival of banks in Nigeria will be to a large extents depend on hour well they understand the intricacies of globalization and how well they are prepared to operate with in the new system.