Strategic Management
STRATEGIC MANAGEMENT
1.0 Analysis of Banking Industry in Nigeria. 1419
The Nigerian banking industry is one of the most dynamic and competitive industries in the Country. The role of banks in economic development has been richly articulated in the literature. Pioneer contribution of Schumpeter (1934) was of the view that financial institutions are necessary condition for economic development. An industry is a group of firms producing products that are close substitutes for each other. (Johnson, G, Scholes, K & Whittington, R 2008). This view has been variously corroborated by other scholars like Goldsmith (1969), Cameron et al (19720, Patrick (1966). The major regulatory objectives of the bank as stated in the CBN act of 1958 is to: issue legal tender, maintain the external reserves of the country, promote monetary stability and a sound financial environment, and to act as a banker of last resort and financial adviser to the federal government. (cenbank.org)Guaranty Trust Bank plc is a leading Nigerian Bank with a corporate/ retail banking bias and strong service culture that has led to consistent year on year growth in its client base and financial indices. (Appendix 1) The banking industry has transformed rapidly in the last ten years, shifting from transactional and customer service-oriented to an increasingly aggressive environment in which competition for revenue is top priority. Consolidation of the Nigerian Banking sector is one of many reforms of the Gen. Obasanjo’s administration that Nigerians have to embrace happily. (Victor E, 2007)
According to the CBN (2001), only 10 banks dominate the banking system in Nigeria. The influence and power of these banks is reflected in their share of the total deposits, loans and advances and total assets put at 53.1 per cent, 46.5 per cent and 50.8 per cent of the industry in 2001. The
1.0 Analysis of Banking Industry in Nigeria. 1419
The Nigerian banking industry is one of the most dynamic and competitive industries in the Country. The role of banks in economic development has been richly articulated in the literature. Pioneer contribution of Schumpeter (1934) was of the view that financial institutions are necessary condition for economic development. An industry is a group of firms producing products that are close substitutes for each other. (Johnson, G, Scholes, K & Whittington, R 2008). This view has been variously corroborated by other scholars like Goldsmith (1969), Cameron et al (19720, Patrick (1966). The major regulatory objectives of the bank as stated in the CBN act of 1958 is to: issue legal tender, maintain the external reserves of the country, promote monetary stability and a sound financial environment, and to act as a banker of last resort and financial adviser to the federal government. (cenbank.org)Guaranty Trust Bank plc is a leading Nigerian Bank with a corporate/ retail banking bias and strong service culture that has led to consistent year on year growth in its client base and financial indices. (Appendix 1) The banking industry has transformed rapidly in the last ten years, shifting from transactional and customer service-oriented to an increasingly aggressive environment in which competition for revenue is top priority. Consolidation of the Nigerian Banking sector is one of many reforms of the Gen. Obasanjo’s administration that Nigerians have to embrace happily. (Victor E, 2007)
According to the CBN (2001), only 10 banks dominate the banking system in Nigeria. The influence and power of these banks is reflected in their share of the total deposits, loans and advances and total assets put at 53.1 per cent, 46.5 per cent and 50.8 per cent of the industry in 2001. The