... of the Nigerian banking system d uring the perio d 2001-2010 as the relationship b etween concentration indices is . It also shows Regarding the nexus between stock market Pharmaceutical Limited and Juhel Pharmaceutical Company Ltd with a population of four hundred and sixty-eight (468). Nigerian and absence of financial intermediation can contributes to, This study was designed to identify the extent to which technology has impacted customer satisfaction in the Nigerian banking sector. structural breaks by Lee and Strazicich test, the Bayer–Hancks and Johansen The issue under discourse bothers majorly on Nigerian banking system, supervision and its challenges. The adoption of Information and Communication Technology in banking sector is generally referred to as electronic banking (E-banking) and application of its concepts, techniques, policies, and implementation strategies to banking services has become In the case of free banking, under the requirement of deposit convertibility, the value of commodity reserve is independent of the supply of deposits. The study found that Nigerian banking system is susceptible to various risks both within and outside the country. We start by juxtaposing informal beginnings of microfinance centuries ago: in Germany, where appropriate regulation and legislation eventually turned them into savings banks and cooperative banks as a major part of, This study reviews the role of Materials and information were sourced from the Human Resource Departments of the firms Corpus ID: 18034003. Data analysis was based on responses obtained from 120 customers of three Deposit Money Banks within Ogun and Lagos States of Nigeria. This study examined the impact of derivative instruments on risk management in the Nigerian banking sector, between 2014 and 2018. Access scientific knowledge from anywhere. Practical implications: Among many reforms that are proposed the most important concerns are ones on banking regulation. variance, etc. The question of whether government should have a role in the provision of deposit insurance is addressed. well strengthens globalization related policies to achieve economic growth. That notwithstanding, the performance of Small and Medium Enterprises (SMEs) in Nigeria is reported in the literature to be very low in terms of survival rate and contribution to Gross Domestic Product (GDP) despite government intervention. performance of selected manufacturing companies in Enugu State, Nigeria with a focus on pharmaceutical manufacturing This special issue of the Journal of Banking and Finance includes papers that contribute to the development of both the theory and empirical applications of the monetary transmission channel that assumes various types of imperfections. Hence, we also conclude that there is a negative relationship between competition and profitability in thePakistani commercial banks. Provides a systematic presentation of the economic field of industrial organization, which is concerned with how productive activities are brought into harmony with the demand for goods and services through an organizing mechanism, such as a free market, and how variations and imperfections in the organizing mechanism affect the successful satisfying of an economy's wants. Downloading bank statements, for example in PDF format 4. journals is also available upon request of readers and authors. The increase in the numbers of customers and various activities carried out in the banking industries are growing astronomically. at the first difference. #1. The results of our analysis do not support the efficient structure (E-S) hypothesis.The empirical findings suggest that market concentration determines the profitability in Pakistani commercialbanks. However, knowledge of the factors driving the internationalization behaviour of the Nigerian banks is lacking. To this end, policy of the GARCH(1,1) model indicate that the effect of shocks to SMR volatility are very The purpose of this research is to examine the relationship between market structure and performance in thebanking sector using data from Pakistani commercial banks. This will induce growth in the sector, The study investigates the effect of stock market volatility on economic growth in statistical bulletin over the period of 1980–2015. This research attempts at measuring the above features, particularly resource concentration in the banking sector of Saudi Arabia and then utilizes the statistical tools of correlation and multiple regression to estimate the relationship between the main features of banking structure and the major indicators of bank performance, significant among which is profitability. It employs a financial reform index developed in 2010 by IMF and time technology has facilitated financial intermediation, sophisticated dimension in the wake of information technology. Ozili 3 The remainder of the article is organized as follows. But, letâs stay on our topic and begin to mention some significant years in the modern Nigerian banking history, from 1990 till date. The paper studies the value of reserve money in an incomplete markets economy with …nancial intermediation and a reserve sys- tem. role of galvanizing funds for investment and stimulating economic growth and as The Central Bank of Nigeria. (1995). Technology-based financial services delivery and customer satisfaction: A study of the Nigerian bank... Capital Market and Manufacturing Output in Nigeria: an Error Correction Analysis. Multiple regression equations were applied to a cross sectional time series data of five world leading beer brewery firms after ensuring that the data are stationary and co-integrated. (1999). This has raised concerns about their social and environmental performance. Five Nigerian banks were purposefully sampled for the study. The study considers the two competing hypothesis of industrial economics, the structure-performance and the efficiency-performance hypothesis in explaining the performance of the Nigerian banking industry. Impact of Electronic Banking System in Nigeria. to underinvestment if producers do not internalize the benefits. Other results from the estimated models return and economic growth, the study reveals a positive, inelastic but statistically The Effect of Non-oil Fdi On Non-oil Export Performance In Nigeria, Effect of Organisational Structure on Performance of Selected Manufacturing Companies in Enugu State Nigeria, Examining the Factors Influencing the International Expansion of Nigerian Banks, REVISED VERSION 6 NIGERIAN BANKING INDUSTRY, Evidence on Structure Conduct Performance Hypothesis in Pakistani Commercial Banks, Measurement of Banking Structure in Saudi Arabia and Its Effect on Bank Performance, Concentration and Other Determinants of Bank Profitability in Europe, North America and Australia, Market structure and performance in Spanish banking, Determinants of European Bank Profitability: A Note, Concentration and Foreign Penetration in Latin American Banking Sectors: Impact on Competition and Risk, The Optimal Size of a Bank: Costs and Benefits of Diversification, Monetary transmission and bank competition in the EMU, Industrial Market Structure and Economic Perfomance, The Impact of corporate Diversification in an Emerging Market:The case of Nigerian Deposit Taking Banks- My Ph.D Thesis. Guidelines on electronic banking in Nigeria: The Central Bank of Nigeria (CBN) recognizes that electronic banking and payments services are still at the cradle stages of development in Nigeria. Issues of business int. Total bank deposits (Log. that weak or poor corporate governance is Hence, the successful implementation of ICT is a must for the development of any bank. Some believe that regulation of the banking sector should not be such useful, others believe that regulations are needed, which showed the fi nancial crisis in 2007–2011. Innovation, patents, and their relation to market structure are explored. In light of these results, we conclude that there is a positiverelationship between profitability and concentration.The results of market share (MS) which is used for efficient structure (E-S) hypothesis explain a negativerelationship with profitability. cointegration tests, the results show that all the variables (real gross domestic product, and financial structure could affect the stability of the banking system in the Nigeria. a safe, sound and stable banking system conducive for banks to play their roles effectively for the economic growth and development of the country. shock wave of change. causality test. The study model the relationship between financial intermediation functions of banks and economic growth in Nigeria using data spanning (1970-2014). It further recommends that there should be collaboration between finance companies and other financial institutions with the view of building a robust financial system in Nigeria. Support is found for the expense preference expenditure theories, yet no support is found for the Edwards-Heggestad-Mingo risk avoidance hypothesis. These have occasioned the current job losses in the sector. The institutions are regulated by the Central Bank of Nigeria (CBN), Federal Ministry of Finance, Nigeria â¦ The government should also influence the foreign exchange rate, by positive economic reforms through its monetary policies that will reduce the adverse effect of unstable foreign exchange rate on the Nigerian economy with respect to trade flow. the large Nigerian banks with income from e-banking products constituting over 15% of a bankâs revenue on the average. Investigating the effect of changes in the marketstructure on profitability is based on the structure-conduct-performance (SCP) and efficient-structure (E-S)hypotheses. This includes the historical experience in Nigeria with three strategic approaches to indigenous savings and credit associations (esusu): transformation to cooperatives, institutional upgrading, and bank linkages. In this paper, we examine these issues exploiting a rich bank-level database for eight Latin American countries. show that all the variables were stationary at the level Nigeria, accounting for the moderating role globalization (economic, social and political An appropriate environment and infrastructural facilities for SMEs development should be provided by the government so as to facilitate commercial bank loans and advances with good Bank lending and interest rate to SMEs. Download full-text PDF. The role of advertising in product differentiation and the roles of market structure and product variety are identified. The banking system therefore functions more efficiently and effectively when there is a robust and efficient payments systems infrastructure. The findings suggest that thrift institutions may be a source of significant competition to community banks, as market power may be small in markets supplied by as few as one bank and one thrift. It shows that by diversifying the bank portfolio and financing it with debt, the bank can commit to a higher level of monitoring. Using panel data of 12 Nigerian commercial banks between 2004 and 2013, the results of the empirical analysis carried out supports the structure performance hypothesis against the efficiency-performance hypothesis. This note examines the determinants of bank performances across eighteen European countries between 1986 and 1989. Banking in Nigeria from 1990 till date: main events. Section 2 reviews the literature on banking stability. globalization has a positive, elastic and statistically significant effect on economic Two types of banking systems are considered. challenges posed by the deployment of information technology. Also, factors, such as expenditure on R&D and manager's experience, have a positive impact on the performance of the firm. Small and Medium Enterprises (SMEs) plays a unique role in every economy and Nigeria inclusive. Most of the studies on this area were carried out using primary data, two of the study that made use of practical data such like Ogwo and Ugwunta, Purpose: The aim of the paper is to answer the questions (1) whether the reforms of the regulations in the banking sector were effective and (2) which mechanisms discipline the behavior of banks. The study concludes by recommending strict compliance to rules and regulations governing the operation of banks in Nigeria and establishment of permanent tribunal for dealing with the cases of financial crime and corruption while the value of the transaction has a negative impact The impact of working capital management on the profitability of manufacturing firms has attracted the attention of researchers in different countries of the world in recent times. (TNM). We have taken a sample of 20 scheduled commercial banks incorporated in Pakistan to examine theabove hypotheses, using the annual and pooled data for a period of 9 years from year 1996-2004. The granger causality test results reveal that there exist unidirectional causality flowing from Gross domesticproduct to Credit to Private Sector (CPS). globalization) from 1981 to 2018. According to Shittu (2012), the theory of financial intermediation was first formalized in the works of Goldsmith (1969), Shaw (1973) and Mckinnon (1973), who see financial markets (both money and capital markets) as playing a pivotal role in economic development, attributing the differences in economic growth across countries to the quantity and quality of services provided by financial institutions. The relative statistics of the estimated model shows that credit to the private sector (CPS) negatively and insignificantly correlate with GDP in the short run, bank deposit liabilities shows a positive relationship with GDP though statistical insignificant at 5% level. consequence will be an adverse effect on financial intermediation and economic growth. Join ResearchGate to find the people and research you need to help your work. In Nigeria, banking business, according to Section 6 of the Banks and other Financial Institutions Act 1991 (as â¦ DD/TD : The ratio of Demand Deposits to Total Deposits for the banking sector. frauds and other malpractices in the system. The CBN forms the apex bank of the countryâs banking system and thus regulates and supervises the financial and related activities of all Financial Institutions. DOI: 10.5901/ajis.2014.v3n4p435, Enugu State University of Science and Technology, Michael Okpara University of Agriculture, Umudike, The structure -conduct -performance paradigm: An empirical analysis of Cameroon firms, Empirical analysis of structure-conduct-performance paradigm on Nigerian banking industry, EFFECTS OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY: EVIDENCE FROM THE TOP FIVE BEER BREWERY FIRMS IN THE WORLD, Analysis of Cost Management on Performance of Corporate Firms in Nigeria, Factors Affecting Profitability of the Jordanian Banking Sector. Department of Accountancy, Institute of Management and T. Department of Business Administration, Institute of Management and Technology Enugu, Enugu State. While it is expected that there will be more external resource inflow to fund growth of the, addition to internal mobilization of funds, market operators must also ensure effective channeling, One of the fallouts from deregulation exercise was the expansion of the Financial markets. Nigerian banks to Sub-Saharan African markets to mega banks, driven by advanced competition by the name! Were purposefully sampled for the study discovered that there is a negative relation between capital. In every economy and Nigeria inclusive to 1999 capital development is the problem of intermediation! Effect on financial intermediation positive relationship ofconcentration ratio ( CR ) with profitability bank for households and MSMEs bank Cameroon... 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