BANK RECAPITALISATION AND ITS EFFECT ON NIGERIAN BANKING INDUSTRIES

This research is carried out on the problems that have pervaded the Nigerian Banking Industry in the last two decades, which eventually led to distress in the “Herculean” task of recapitalization. The topic examines recapitalization from the point of distress and its causes in the financial system, taking cognizance of customer’s unwillingness to save and the poor banking habit which is due chiefly to the fact that they have lost confidence in the Nigerian banking industry. The scramble for cash to meet up with the recapitalization requirement is also carefully looked at here. The study also offer positive suggestion not only as to how they can consolidate their financial position to avoid being caught in a position of unpreparedness for future recapitalization increases. Lastly, it tries to educate the readers on the ways recapitalization can help to address (if not totally eliminate) the problems in the banking industry and its numerous benefits to the national economy.A

 

 

 

It is widely recognized that the financial system plays a vital role in the economic development of any country. This is done basically through certain institutions in the system, which include such sectors like the banks who are mostly concerned with separating the savings and investment function within the economy. Such that those that save at any particular time need not be those that have to invest at that same particular time. Therefore the financial system includes the banking institutions, which are very important in the payment and collecting systems. An efficient financial system is very important and widely accepted as a necessary condition for the effective functioning of a nation=s economy. A responsive banking system is Central to the attainment of a sound economic base and its economic performance has far reaching political implications. Banks facilitates economic transactions between various national and international units financial sector is usually aimed at ensuring a safe and sound system where depositors are protected.