The Effect of Deregulation Policies on the Profitability of Banks in Nigeria
CHAPTER ONE
Introduction
1.1 Background of the study
Organization, corporations or establishment, just like the governments are governed by rules and regulations, in the same way every economy set out goals, which it achieves, through various means. Vibratory and fiscal policies are the stimulant to any nation economic development, especially with regards to Nigeria. However, in this study, the attention of this is mainly on the influence of deregulation on banks profitability in Nigeria. The discussion on the deregulation can be effectively carried out without understanding what monetary policy is all about. In this content, monetary policy could be defined as a policy which deals with discretionary control of money supply by the monetary authorities in order to achieve stated economic goal of society. The performance of the Nigeria economy has on the decline for a long time now.
However the central bank has been issuing series of policies through which she tries to stabilize price in the country. The central bank which came into operation since 1959, has introduced monetary measures for the achievement of the national economic objectives, which range from the maintenance of a health balance of payment control or moderation of inflation through the acceleration of the peace of the economic development to the stabilization of the exchange rate of naira with foreign currencies.
Deregulation could be defined as the removal of the unnecessary control which tends to inhabit or prevent the effective and efficient programme of economic and business activities. The regulators and deregulation in the banking sector/ industry have favored some banks while some other banks could not stand the weir of constant changes in the monetary and banking policies.
However, deregulation goes with its merit which includes; the removal of inhibiting controls on economic activities, encouragement on investment and assurance of efficient allocation of resources. Over
Introduction
1.1 Background of the study
Organization, corporations or establishment, just like the governments are governed by rules and regulations, in the same way every economy set out goals, which it achieves, through various means. Vibratory and fiscal policies are the stimulant to any nation economic development, especially with regards to Nigeria. However, in this study, the attention of this is mainly on the influence of deregulation on banks profitability in Nigeria. The discussion on the deregulation can be effectively carried out without understanding what monetary policy is all about. In this content, monetary policy could be defined as a policy which deals with discretionary control of money supply by the monetary authorities in order to achieve stated economic goal of society. The performance of the Nigeria economy has on the decline for a long time now.
However the central bank has been issuing series of policies through which she tries to stabilize price in the country. The central bank which came into operation since 1959, has introduced monetary measures for the achievement of the national economic objectives, which range from the maintenance of a health balance of payment control or moderation of inflation through the acceleration of the peace of the economic development to the stabilization of the exchange rate of naira with foreign currencies.
Deregulation could be defined as the removal of the unnecessary control which tends to inhabit or prevent the effective and efficient programme of economic and business activities. The regulators and deregulation in the banking sector/ industry have favored some banks while some other banks could not stand the weir of constant changes in the monetary and banking policies.
However, deregulation goes with its merit which includes; the removal of inhibiting controls on economic activities, encouragement on investment and assurance of efficient allocation of resources. Over
Bibliography: Achimunu, C. (2002) “Critical development” in 100 years of banking in Nigeria. (1992 -2002) Lessons for Today’s Bankers. Ike Onyechere, Potomac Nig Ltd, Lagos Adekanye F Aperibigbe J. ( 2007) “Monetary Policy & Financial Sector reform” CBN, Bullion vol. 21, No.4, October – December. Agene, C. (2002) “Banking Supervision & Inspection” CBN, Bullion vol 21, No. 4, Oct – Dec. Anyanwu J. (2003) “Monetary Economic”. Theory Policy & Institutions, Hybrid Publishers Ltd, Onitsha Chandler and Gold Field (2007) “The economics of money and banking” 7th Edition, Harper International edition. Felagan S. (2007) “Redesigning Nigeria Financial System” University Press Ltd. Ibadan. Furner L. (2002) Introduction to Financial Economics, Heinemann London Hanson J Inanag E & Ukpong G(2007) “A review of small scale enterprises credit delivery strategies in Nigeria”, CBN Economic & Financial review vol 30, No.4 December. Nwankwo G. (2009) Prudent Regulation of Nigeria Banking” The Nigerian Banker, Vol. 8, No. 4 Ojo M Ojo M. (2006) Monetary credit and other financial policies in the 1996 Federal Government Budget, CBN Bullion Jan – March. Oke B. (2009) “The Evolution of Nigeria Fiscal System, Challenges & Prospects”, CBN Economic & Financial review, Vol.27 No.2, June Olaloko et al (2009) The Structure of Nigeria Economy” Macmillan Ltd Onyechere L (2003) “100 years of banking in Nigeria” (1992) Lessons for Todays Bankers. Potomac Nig Ltd. Lagos. Oresotu, F. (2008) “Interest Rates Behaviour Under a Programme of Financial Reform, The Nigerian Case CBN Economic & Financial review, vol 30. No.2, June Orji I Orji I.(2006) “Appraisal of the Nigeria Financial System”, CBN Bullion. Vol. 13, No. 2, April – June. Oseyemi, Ralpha K. (2006) Appraisal of the Nigeria Financial System. Practice of Banking Vol 2. F & A Publishers, Lagos. Osuala E. (2005) “Introduction to Research Methodology” 1st edition N.Y Exposition Press. Sanusi J. (2004) “Supervision of Banking Industry in Nigeria. An Operator’s viewpoint”, CBN, Economic & Financial review vol.32, No. 3. Wochi, A (2007) “Preventing Bank Failure in the 1990’s 1 business times November. Uzoeshi F. (2008) “Modern Research Techniques in the tropics”, Springfield publishers, Owerri. World Bank (2004) “Nigeria Structural Adjustment Program, Policies, Implementation and Impact” Report No. 13053.