THE STUDY OF THE IMPACT OF UNIVERSAL BANKING IN NIGERIA FINANCIAL SYSTEM

THE STUDY OF THE IMPACT OF UNIVERSAL BANKING IN NIGERIA FINANCIAL SYSTEM

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND TO THE STUDY

The performance of the Nigeria banking sector has been a serious concern to the generality of Nigeria. Such Nigerians includes but are not restricted to politicians, the military, the academic community  , industrialist , traders, and even the peasant community. As one reflects on the present state of the sector, one cannot but come to the sad conclusion that all is not well. Actually, the method of expressing the dissentient within the banking sector may be varied but there is umainity in feedings. These feelings have one interpretation, which can be described in a polite language as bewilderment at the modes of operation of banks. The questions that readily comes  to mind is encapsulated in one sentence; what is wrong with our banking sector ? other questions fact draws from this includes.

(i)  Is the problems that of management ?

(ii) Is the problem that of poor regulatory policy by the controlling authorities ?

(iii)  Is the Nigeria banking environment inherently defective ?

Whatever the reasons that can be adduced for the unimpressed performance of this subsection, one thing is crystal clear, the banking sector is sick and may have lapsed into comma, therefore a serious surgical operations may be required to revitalize and sanitize it. Furthermore, inspite of drastic changes that took place in the Nigeria Banking sector within the last decade in the area of institutional  framework, legal and regulatory financial, the overall performance of this industry can be said to be grotesque, absend and in congruous with the expectation of Nigerians. (Emekewue, 2013) .

With the ever – increasing deregulation and liberalization of the financial system and the revolution in information technology, the Nigeria economy cannot but be affected by the globalization of the world economy. It will be faced with foreign competition for it is handily position for Nigeria to benefit from position result  this phenomenon,  such as capital flows, it  mater have a health and sound financial system and institution with the capacity to play the global gave efficiently and effectively (CBN) Ballion 2013. Moreover, within the context of globalization, deregulation and liberalization, the preference will before a system that permits unfettered choice which is a vote for the universal banking, where the financial bankers between banks are removed and scope and operation of banks enhanced.