ANALYSIS OF UNIVERSAL banking AND ITS IMPLICATION ON THE NIGERIAN ECONOMY
ANALYSIS OF UNIVERSAL BANKING AND ITS IMPLICATION ON THE NIGERIAN ECONOMY
1.1 BACKGROUND TO THE STUDY
According to Akngbola (2000:7), the concept of universal banking has gained more currency than any other issue and has also shot up to the front burner of national economic discourse, particularly in the banking circle,
in the last decade exigencies market dynamics and trends in the international money market have led to the approval and re-examination of the structure scope functions of banking institutions in the country.
Okehi (2000:16) went on to say that until about a decade ago, no definite well-assembled and articulated positions for universal banking were made, owing largely to the prevalence of a conducive macroeconomic environment for the continued demarcation of retail and investment banking functions, but the faltering of the economic attendant inclement operating environment for banks.
The perceived lack of a level playing field between retail and investment banks, as well as the recent harmonisation of all banks' shares, have together awoken and fueled the current push for the development of a new banking system in which all banks are treated equally.
1.2 STATEMENT OF THE PROBLEM
As Okoro (200:2) highlighted, understanding the principles and guiding lines of economic policies, as well as a clear evaluation of their implications, are critical to their successful implementation and operation. This basic principle also applies to the banking industry;
however, the economic implications of these policies are not usually considered before they are enacted. The consequences of such a casual attitude have likewise been disastrous for the economy.
In light of the foregoing, this paper tries to explore the implications of the CBN's introduction of universal banking. As observed in this study, the study will address the problem by attempting to answer several questions.
1.3 STUDY GOAL
This research study aims to analyse the concepts and guidelines of the proposed universal banking scheme for nigeria, as well as the banking industry and the economy as a whole.
1.4 THE SIGIFICANCE OF THE STUDY
The proper deployment of the universal banking system in Nigeria is critical.
a. The advancement of efficiency through economies of scale and scope.
b. The promotion of healthy competition and improved service delivery.
This study is thus justified on the grounds that it aims to assess their anticipated effectiveness, efficiency, and potential economic benefit. The study's findings would also aid in identifying strategies to implement the guidelines outlined by the Nigerian Central Bank.
DEFINITION OF TERMS
The information used in this study is derived from two sources. These are the sources:
a. First-hand information
a. Secondary sources of information
primary DATA: The following sources will be used to collect primary data.
Questionnaires are a type of survey.
2. An observation
3. An oral interview.
SECONDARY DATA: Secondary data will be acquired from the following sources:
1. Literature sources
2. Business publications