PROBLEM AND PROSPECTS OF NEW GENERATION BANKS IN NIGERIA
ABSTRACT OF THE PROBLEM AND OPPORTUNITIES OF NIGERIA'S NEW GENERATION BANKS
Miss NWANKWO AMALACHUKWU wrote a comprehensive study paper with the registration number BK/N2003/197 on the issues and prospects of new generation banks in Nigeria.
The study examines the actions of new generation banks, how they work, and how they have improved in the rural and business sectors. Also,
how does the government restate its efforts in terms of various monetary policies such as the minimum lending rate and acceptance deposit? It also addressed the issues related with Nigeria's next generation banks and proposed solutions.
Banking was defined as a business by the Banking Act of 1960. The business of accepting payments from outside sources as deposits, regardless of interest payment,
and granting money loans and accepting credits or purchasing bills and cheques and selling securities for the accounts of others. A bank is defined as any individual or corporation that performs basic financial services and is licenced as such by the federal government of Nigeria.
1.1 BACKGROUND OF THE STUDY
The creation of new generation banks in Nigeria may be traced back to merchants who generated the demand for locally based banks in the erstwhile West African colonies. For many, financial institutions have replaced the old barter system,
and the British silver coin is increasingly employed in commercial transactions, government transactions, and individual investment. A new generation bank is required to import these coins, distribute them, and absorb any surplus.
Furthermore, the history of financial institutions in West Africa may be traced back to 1891, when the chairman of Elder Demister & firm, a retail firm that operated between West Africa and Liverpool, imitated an attempt.
The Africa Banking Corporation was founded in 1892, followed by the Bank of British West Africa in 1894, to service Nigerian bankers' aspirations.
The colonial bank was founded in 1916 and was taken over by Barcloys bank in 1925. They were changed to the Barclays bank together with the Angjo Egyptian bank, South Africa's national bank.
1.1 STATEMENT OF THE PROBLEM
The government has succeeded in convincing commercial banks to create branches in new generation areas, to observe how government policies are implemented, and to identify the challenges experienced by these banks in the process of opening branches in new generation bank areas. So far, the problems observed are.
1. Why is the Nigerian commercial bank's structural structure and management a barrier to the development of bank services to next generation banks in areas?
2. Why are there manpower constraints?
3. Why does this new generation bank have such terrible infrastructure and accommodations?
3. Why has bankers' gloomy attitude towards themselves led to the challenges afflicting the new generation banking programme?
1.4 significance OF THE STUDY.
The purpose of this study is to determine whether or not the rural populace is aware of branch banking in their communities. It will also determine whether the program's goals of promoting and developing banking habits, mobilising rural savings,
providing financing for small-scale companies, and creating employment prospects in rural communities have been met. There is also a need for purposeful monetary policy targeted at strengthening banks and encouraging the use of cheques rather than cash in rural regions.
This study will assess how well commercial banks have followed the CBN requirements for rural banking development.
1.6 DEFINITION OF TERM
Some of the words used in the paper require clarification in order to help readers' comprehension.
RURAL AREA: Any area in a state that has not been classified as an urban area by the state government.
CROSS domestic PRODUCT: This is most commonly written and mentioned by economists in the abbreviated form, GDP, and it refers to the monetary equivalent of a country's products and services generated during a specific time period, usually a year.
URBAN AREA: An urban area is defined under the act as a state-designated area that is not located in a rural area.
RURAL DWELLER: A person who lives in a rural community, hamlet, or tribe. They live in a national and clean atmosphere.
BANK: Any individual or organisation that performs basic banking services and is licenced as a bank by the federal government of Nigeria as a banking institution.