BANKS' SURVIVAL STRATEGIES IN A POTENTIALLY DISTRESSED FINANCIAL ENVIRONMENT: A CASE STUDY OF HABIB NIGERIA BANK LIMITED
BANKS' SURVIVAL STRATEGIES IN A POTENTIALLY DISTRESSED FINANCIAL ENVIRONMENT: A CASE STUDY OF HABIB NIGERIA BANK LIMITED
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Date
2000
Authors
TUKUR, MUHAMMAD BELLO
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Abstract
This study has revealed that a gap exists between the theoretical basis and the
practical application of existing knowledge and experience in the field of banking
and financial institutions management in the developing countries. As a
consequence of this gap, the study further reveals that there could be an impact
on the national economies, in particular the domestic currency operations, of such
countries; with considerable loss of funds by shareholders, creditors and
depositors. The measures necessary and steps needed to bridge the gap is the
objective of this study.
The study gives a preview of the stormy and chequered history of banking in
Nigeria. It also provides an overview of the current myriad of problems being
experienced by the banking industry in Nigeria, which started in 1986 shortly
following the introduction of the Structural Adjustment Programme (SAP), and
culminated with the demise of some 40 banks in 1994 and the loss of an estimated
over 41 billion Naira of depositors funds.
The central theme that emerge is that banking is in the midst of change. As
government seek to improve economic efficiency and better allocate resources,
policy makers are shifting economies towards openness, competition, and market
discipline. Privatization is spreading, and state firms including banks that were
once highly regulated, are being given greater autonomy. This, coupled with the
near-global confrontation with financial distress - all demand substantial
strengthening of banking institutions.
The study found a strong correlation between financial ratios and profit or strength
of the bank in a sample statistics drawn from reports on the case study bank. The
sample correlation is also demonstrated to be statistically significant through
hypothesis testing using t test.
In summary, the study revealed that for banks in both in the developed and
developing countries to survive and prosper in a market economy; they must be
prudently run by competent, knowledgeable and experienced management and
board of directors; meet regulatory standards and laws; developing the capacity
to select from international experiences aspects of planning and management that
are useful; and clearly defining feasible goals in relation to their technical and
financial resources and in consonance with their cultural, economic and social
environment.
Description
Submitted to Post Graduate School
Ahmadu Bello University Zaria
In Partial Fulfilment of the
Award of the degree of
Master of Business Administration
AHMADU BELLO UNIVERSITY ZARIA
2000
Keywords
BANKS,, SURVIVAL,, STRATEGIES,, POTENTIALLY,, DISTRESSED,, FINANCIAL,, ENVIRONMENT,, CASE,, STUDY,, HABIB,, NIGERIA, BANK,, LIMITED,