DEREGULATION AND TREASURY ACTIVITIES IN THE NIGERIAN BANKING SECTOR AN ANALYSIS OF SELECTED MERCHANT BANKS

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dc.contributor.authorIBRAHIM, SIDI BAMALLI
dc.date.accessioned2014-02-21T08:47:13Z
dc.date.available2014-02-21T08:47:13Z
dc.date.issued1993
dc.descriptionA PROJECT SUBMITTED TO THE POST-GRADUATE SCHOOL, AHMADU BELLO UNIVERSITY, ZARIA IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER IN BUSINESS ADMINISTRATION. DEPARTMENT OF BUSINESS ADMINISTRATION FACULTY OF ADMINISTRATION AHMADU BELLO UNIVERSITY ZARIA. 1993en_US
dc.description.abstractThe Nigerian Banking sector which had been regulated prior to 1986, witnessed a steady deregulation of both interest rates and foreign exchange controls, from the year 1986. By 1987, ceiling on lending and deposit rates were virtually removed, while the Foreign exchange market was liberalised enabling Banks to determine rates outside the official exchange rate as approved by the government. This added a new dimension to Treasury Management; purchase, control and management of the local currency and foreign exchange. Alongside these developments, certain monetary policy statements by the authorities impacted on the developments of money market and indeed the treasurers' functions. The withdrawal of government and government parastatals deposit from the Banking system, to the Central Bank of Nigeria is a case in point. The policy was directed at reducing the size of money in the banking system, control of inflation and achievement of budgetary expectations. However, the impact of this policy statement is the astronomical jump in interest rates witnessed, and the beginning of the crisis of confidence in the Banking industry as many banks could not honour their matured obligations. Interest rates remained high and completely deregulated, while the resultant high cost of fund was subsequently passed down to users of credits thus increasing their costs, and in the final analysis increasing prices of goods. The years 1988 - 1992 saw a greater increase in the level of financial intermediation as many Banks were licenced resulting in intense competition in fund sourcing and pricing. By 1993, the competition was at its peak when the political crisis crept in resulting in nea r economic collapse since virtually everything in the economy stopped especially in the South-western axis of the country. Prior to this, the monetary authority introduced the stabilisation securities in its attempt to further reduce or mop up liquidity from the banking system. However by 1994, the government reverted to the era of regulation fixing a maximum lending rate of 21% P.A. and a deposit rate range of 12-15% P.A., while still carrying along the stabilisation securities application. This indeed worsened the Banks portfolio as depositors who were used to the high rates as offered in 1993 were uncoilling to part with their money at such a low rate as decreed by the government. The resultant effect is low credit to the borrowers of funds as Banks concentrated on how to survive in such a turbulenceen_US
dc.identifier.urihttp://hdl.handle.net/123456789/2245
dc.language.isoenen_US
dc.subjectDEREGULATIONen_US
dc.subjectTREASURYen_US
dc.subjectNIGERIAN BANKING SECTORen_US
dc.subjectSELECTED MERCHANT BANKSen_US
dc.titleDEREGULATION AND TREASURY ACTIVITIES IN THE NIGERIAN BANKING SECTOR AN ANALYSIS OF SELECTED MERCHANT BANKSen_US
dc.typeThesisen_US
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