Academic literature on the topic 'Advertising – Banks and banking – Nigeria'

This is a correlational research design that intended to examine the nexus between retail banking and financial performance of banks in Nigeria. The Panel Least Squares regression results aided the study in ascertaining the coefficient, standard error, t-statistic and probability. The tabulated ratios were exported to EViews 9.0 to run the panel regression. Data were collected and analyzed based on the annual reports available on the website of 16 banks listed on the Nigerian Stock Exchange as at 31st December 2018 out of the approved 22 commercial banks in Nigeria. The result of findings revealed that Size and Competition significantly impacted on bank performance with a probability of 0.0071 and 0.0178 respectively which is less than 5% degree of significance; and Loans and deposits relationships were all not significantly impacting on bank performance, as the probabilities for all variables were more than the acceptable 5% degree of significance. Based on the outcome of findings the following conclusions were drawn that; Size which is the natural logarithm of Total Assets and Competition which is the natural logarithm of Total Deposit is significantly responsible for bank performance in Nigeria. The study therefore recommended that professional bankers should continually focus on growth and expansion drive that will increase the size of the bank and enable the banks to compete nationally and internationally in order to drive profitability. Banks that want to experience optimum performance should focus more on policies that will attract huge retail deposit to the bank being that the savings component of the total deposit banks in Nigeria comes at a ridiculously cheap rate to the banks and banks loaned out these deposits at high margin.

This study examines customers’ awareness of Islamic banking products and services in Nigeria and explores their attitude towards them. It also investigates their patronage of the banks. An 18-item questionnaire was designed for businesspersons, Muslims and non-Muslims, to obtain information on issues such as awareness of Islamic banking, loans without interest, collateral security, agency, partnership based on sharing of profits and losses and patronage of an interest free financial system. The results show the willingness of the Muslims and a large number of non-Muslims to patronize Islamic banking products and services. Products and services offered by a large number of the respondents were shariah-compliant. Their readiness to give collateral security, which is neither compulsory nor against the dictates of Islam, indicates their attitude and preparedness to patronise Islamic banks. However, a few non-Muslim respondents state they will not patronise Islamic banking products even if they are profitable and they are the only products in the banking sector in Nigeria. This study will assist promoters of Islamic banks in Nigeria to know where they can establish full-fledged Islamic banks. There is need for the existing and the potential Islamic banks to create more public awareness on Islamic banks.

This study examined the effect of e-banking income, fee income, and firm size on market value added of Deposit Money Banks in Nigeria. The eight banks categorised by Central Bank of Nigeria in 2014 to be Domestic Systematically Important banks were selected using the purposive sampling technique. Data collected from the annual reports and accounts and the Nigerian Stock Exchange website respectively for a period of 11 years (2008-2018) was used. The descriptive statistics and econometric analysis were employed using the Panel Data Analysis method. Findings from the study revealed that e-banking income and fee income each has a significant positive effect on market value added of DMBs in Nigeria. The study recommends that banks in Nigeria should further develop its internet and other electronic platforms that can improve its income from e-banking operations since e-banking income is shown to be a strong and emerging component that boosts banks' performance. Larger and investment-oriented banks should focus on increasing their share of interest income to become more stable.

In most developing countries, several cases of collapses or failure in the banking sector were witnessed. Nigeria had witnessed several cases and collapsed in the banking sector. This study investigated the effects of corporate governance on the financial performance of commercial banks in Nigeria. The study used the survey research design. A secondary source of data was used for this research. The data were collected from financial statements of the five (5) commercial banks selected from the Nigerian Stock Exchange listing for fourteen financial years (2003 – 2017). The study utilized the panel Least Squares Regression Analysis as the method. The result indicated that board size had significant effects on financial performance (ROA) of commercial banks in Nigeria, board composition had significant effects on financial performance (ROA) of commercial banks in Nigeria, board gender diversity had significant effects on financial performance (ROA) of commercial banks in Nigeria, the audit committee has no significant effects on financial performance (ROA) of commercial banks in Nigeria, and board independence had significant effects on financial performance (ROA) of commercial banks in Nigeria. The study, therefore, concludes that the weak corporate governance structure in Nigeria contributed immensely to the recent crisis experienced in the Nigerian banking sector. The study recommended that banks develop and implement strategic training for board members and senior bank managers. Nigerian banks should appropriately adopt the international codes of corporate governance to meet the need of the Nigerian environment, among other recommendations.

The incessant bank distress coupled with the poor financial intermediation capacity of the banking sector has been identified as the main problems of the banking subsector in Nigeria. This underscores the continue quest for increase capital base of banks as possible remedy to these problems. This development makes it imperative for us to examine how capitalization has affected banks profitability in Nigeria. To achieve our objectives, both panel and Partial Frontier efficiency analyses were utilized in this investigation. Using gross profits of 18 DMBs as dependent variable while capital base of DMBs, real income (GDP), financial deepening, interest rate and inflation rate are independent variables, we found that: capitalization has a significant impact on profitability of banks, while financial development, real income level were found to had contributed less to profitability of banks in Nigeria. It was further discovered that, interest rate has less implication on the profitability, while the impact of inflation on profitability of banks was positively but insignificantly. We also found that 58 % of the total variation in profitability is influenced by capital base, financial deepening, interest rate, GDP and price level in Nigeria over the period. The study further revealed that impact of capitalization on profitability of banks is the same across the banks. Finally, using the partial efficiency frontier analysis, we found that Unity Bank and UBA performed better with improved capital base while Union and Heritage Banks performed abysmally with high capital base given the very low efficiency scores. Based on these findings, the study recommends; periodic upward review of capital base of banks, stable macroeconomic policy, and creating enabling environment for investments as ways of enhancing an efficient financial sector and growth of the Nigerian economy. Int. J. Soc. Sc. Manage. Vol. 3, Issue-3: 203-213

The goal of this paper is to assess the impact of e-banking, which are distinct from conventional banking systems, on central banks’ monetary policy. E-banking poses a challenge to central banks’ ability to control interest rates and it may also increase endogenous financial instability. The challenge to interest rate control stems from the possibility that e-banking may diminish the financial system’s demand for central bank liability, rendering central banks unable to conduct meaningful open market operations. Increased financial instability could emerge from the increased elasticity of private money production and from the periodic runs out of e-banking into central bank money that generates liquidity crises. Similarly, the future of e-banking is dependent on its growth, regulation and increased technological advancements that would boost the security of the new instrument. It will directly impact the central bank’s control of monetary policy unless it is included in its measurements of monetary aggregates. We therefore recommend that since the impact of e-banking on monetary policy depends solely on how fast it will spread and the extent to which it will substitute for cash, it is vital that Central Bank of Nigeria (CBN) considers taking steps to compensate the resulting decrease in its balance sheet. Also, CBN must have to impose special obligations with the money reserve on the e-banking issuer in case of any large increase in e-banking creativity that will affect the monetary policy at the end. The government must keep the rate of prices stable and with this condition, where e-banking will be equal to other forms of money which maintain by apportion percentage as a reserve ratio to the central bank. Similarly, if e-banking spreads moderately, there will be a decrease in the seigniorage income and thus, the decrease in the balance sheet of CBN will be limited. Hence, it must include e-banking in monetary aggregates that the spread of e-banking may lead to a change in the velocity of money. Keywords: monetary policy, e-banking, technology, velocity of money

Political risk is prevalent in Nigeria and tends to influence business outcomes and the stability of the banking system. As a result of this study, it was determined whether political risk matters to the performance of the banking sector in Nigeria. The effect of political risk on different banks’ performance measures, such as return on assets, return on invested capital, credit risk and stock price, were examined in a panel of 12 selected commercial banks for the period 2006–2018. Data was analyzed using a two-stage system of generalized method of moments. The results provided evidence that the effect of political risk on bank performance depends on the performance proxies. Specifically, political risk was found to be negatively related to banks’ returns on invested capital and positively related to deteriorating credit risk. Hence, it can be concluded that political risk induces poor banking system performance in Nigeria. The study provides a critical insight into the management of a country’s political systems in terms of their potential to create unfavorable conditions for banking systems to thrive.

Banks are the support system of any economy, hence the significant need for economies to have a healthy system of banking with operative corporate governance system. The study examined the effect of corporate governance and financial performance in the banking sector of Nigeria and United Kingdom. It analysed secondary data collated from the annual report of ten listed banks each from the Nigeria and UK stock exchange markets. Using multiple regression model, the study examined the combined effect of board size, board composition, audit committee and firm size on the performance of the listed banks. The result shows that corporate governance variables have a significant effect on the financial performance of the Nigeria and U.K banking sector. Keywords: Inflation, monetary policy, economic growth, purchasing power, Nigeria.

The article presents the results of an empirical study of the features of evaluating advertising of banking products. 99 respondents with a different experience of borrowing behaviour, aged 18 to 66, 37 per cent males, were assessed. The respondents were asked to rate, using the semantic differential methodology, two pictures depicting mortgage advertisements from VTB and Otkritie banks. By comparing the average values of the ratings, we found that advertising for banking products is evaluated more negatively, even if the ideal option is presented. Actual advertising images are rated significantly lower than ideal images — people with real experience of taking loans rate advertising for banking products as more benevolent.

The Nigerian microfinance banks often close their offices abruptly, leading to the loss of shareholders' funds. The purpose of this phenomenological study was to explore strategies microfinance bank directors use to maintain business sustainability. The concepts of microfinance banking, sustainability value, and strategic management theory formed the conceptual framework for this study. Twenty managing directors from microfinance banks in the Anambra state of Nigeria participated in semistructured interviews. The data analysis process involved the use of Moussakas' modified van Kaam process, which resulted in the emergence of 3 themes: strategic management, fear of microlending, and maintaining sustainability. The emergent themes indicated the necessity of a strategic management focus on maintenance of sustainability, growth in microfinance banking knowledge, best practice implementations, savings mobilization, technological input, and expansion of microlending services. The implications for positive social change involved the potential for bank directors to apply these findings to improve Nigerian microfinance banking performance and provide regular payments of shareholders' dividends. The increase in shareholders' funds and provision of credit administration to indigent Nigerians may contribute to economic growth within local communities, decrease crime, and increase income generating business activities in Nigeria.

Thesis (MBA)--University of Stellenbosch, 2010.<br>The purpose of this study was to determine the relationship between corporate governance and the profitability of banks in Nigeria. This has been done in line with previous studies in other parts of the world where it was discovered that the corporate governance culture of a firm does have an effect on its profitability. The corporate governance variable employed in this study was that of ownership. Four types of ownership were used as the independent variables, namely board ownership, institutional ownership, foreign ownership and government ownership. Whilst the dependent variables employed were return on assets (ROA) and non performing loans ratio (NPL). Information on banks’ return on assets and non performing loans was generated from year end financial statements and yearly bank reviews from a Nigerian based research firm called Agusto and Company. Also the banks’ ownership variables information was also pooled from financial reports, the Agusto report on banking industry as well as bank websites. A descriptive statistic data was generated to review the trend of banks’ return on assets and non-performing loan performance indicators, whilst a Pearson correlation table was generated to review the correlation between the ownership variable and the performance of banks. The results generated were found to be similar to what has previously been done. This study makes a significant contribution to research by exposing the importance of corporate governance, a concept which has been neglected in the Nigerian corporate world. Finally it provides further justification to do further research in this area in the Nigerian banking and corporate environment.

The protection of consumers of financial services has attracted a lot of debates following the global financial crisis of 2007 to 2009. As a result, there have been series of reforms in a number of jurisdictions across the globe. Despite this development some countries still lag behind and Nigeria is no exception. This study examines the problems of consumer protection in Nigeria, with specific reference to the bank consumers. The aim is to consider whether the Nigeria consumer protection regime provides "sufficient protection to bank consumers and whether it should be reformed". The study also focuses on the role of the Central Bank of Nigeria (CBN) in consumer protection, its dispute resolution mechanism and the practical challenges. The test of sufficiency will be analysed and discussed, using 'consistency', 'efficiency' and 'accessibility' in order to illustrate the existing weaknesses in resolving consumer dispute. The approach in this study is doctrinal analysis. In all, the findings suggest that there is need, to reform the consumer protection regime in the banking sector and enforce laws which will address issues highlighted in the study to enable the users of banking services in Nigeria to obtain an appropriate level of protection through regulatory processes. This study, therefore, also provides a comparative analysis between United Kingdom and Nigeria, using current consumer protection framework in the United Kingdom in making proposals for the needed reforms in Nigeria. The study thus concludes with the recommendation that the current Nigerian consumer protection regime does not offer adequate protection; hence protecting consumers require a holistic approach which includes effective consumer protection framework, enforcement, coordination and cooperation from different stakeholders.

Thesis (MDF)--Stellenbosch University, 2012.<br>The study was carried out to find out the effect of credit risk and portfolio loan management on profitability of microfinance Banks (MFBs) in Lagos, Nigeria. To achieve the objective of the study, an econometric model was developed. A sample size of 14 microfinance banks was randomly selected, comprising four national, five state and five unit microfinance banks respectively. Five year annual financial statements of these 14 selected microfinance banks were obtained for this analysis using panel data that produce 70 observations for the period 2006 to 2010 The result reveals that the current value of all independent variables follow an expected relationship with the profitability of microfinance banks. That is, the net interest margin, asset mix proxied by ratio of loan to total asset, and ratio of equity to total assets have a positive relationship with the profitability of microfinance banks (MFBs) in Lagos state, Nigeria. Asset quality (ratio of non-performing loan to total loan) and the interest earnings to total assets ratio have a negative relationship with profitability of microfinance banks. However, the result reveals that of the five immediate past value of these independent variables, only net interest margin and interest earnings to total assets ratio maintained expected relationship with the performance (profitability) of microfinance banks. From the hypothesis test, it was found that credit risk management has a significant effect on the profitability of microfinance banks in Lagos state, Nigeria The study is set against the background and realisation that many MFBs in Lagos seem to continue to seek growth and profit without much attention to addressing credit risk issues – a necessity for their survival on a sustainable basis. The results indicated that the credit evaluation process was positively and significantly related to the quality of the loan portfolio in MFBs. The study also found out that internal rather than external to the MFB’s are more likely to provide the main explanation for MFBs’ profitability. To enhance their profitability, loan products which seem to have various defects which make loans even more risky need to be reviewed. The defects include: long loan processing procedures, absence of training to clients on proper utilisation of loans, lack of mechanisms to assess the suitability and viability of the business proposal for which loans were applied, inappropriate mechanism for assessing character for loan applicants, absence of moratorium periods between taking of a loan and repayment of a first instalment as clients were requested to repay their first instalment within the first month. The study recommended that MFBs should have a broad outlook in its credit risk and portfolio management strategy and this calls for radical reforms within the MFB’s operations and policies as well as more aggressive approaches most especially before availing credit and in its loan recovery as it had a direct impact on profitability.

Thesis (MComm)--Stellenbosch University, 2014.<br>ENGLISH ABSTRACT: In the financial service sector, specifically the banking sector, the competition for market share has become fierce. South Africas‟ Big Four banks (Absa, FNB, Standard Bank and Nedbank) are currently threatened by Capitec‟s simplified business strategy. Capitec is not just retaining customers, but also attracting new-to-bank customers and customers from other banks. Capitec‟s strategy has led to an increase in competitive rivalry among the banks. The Big Four banks are struggling to retaliate against Capitec‟s innovation, creating a situation where only the strongest will survive. The reason for this competition is Capitec‟s move to target the higher-income market, since they are changing the profile of their original customer base. On the other hand, Absa is counter-attacking by targeting Capitec‟s primary market that consists of lower-income groups. Both Capitec and Absa are initiating vertical service line extensions (VSLE). The difference between the two banks‟ strategies is the direction of the vertical extension, where Capitec is utilising an upward VSLE, and Absa is utilising a downward VSLE. Not enough attention has been given to service line extensions compared to extensions of tangible products. In this study the focus is on vertical line extensions within the service sector and more specifically the banking sector. The primary objective is to investigate the influence attitudes towards a vertical service line extension (VSLE) have on current customers‟ perceived brand image. Furthermore, the difference between customers‟ attitudes towards a bank pursuing an upward vertical service line extension and one pursuing a downward vertical service line extension, is investigated. The secondary objectives of the study are to assess whether or not (1) perceived quality influence customers‟ attitudes towards a VSLE; (2) perceived status fit influence customers‟ attitudes towards a VSLE; (3) customers‟ perceived fit between their self-image and the communication, influence attitudes towards a VSLE; (4) attitudes towards a VSLE influence brand image; (5) there is a difference between customers‟ brand image, perceived quality, perceived fit, and self-brand communication fit of a bank that introduced an upward extension and one that introduced a downward extension. In the case of an upward VSLE (Capitec), the results suggest that perceived quality was the only variable that significantly influenced attitudes towards the VLSE. On the other hand, in the case of a downward VSLE (Absa), perceived quality and communication fit significantly influenced attitudes towards a VSLE. Furthermore, attitudes towards the VSLE did significantly influence brand image in both an upward and downward extension. Perceived status fit was the only variable that did not significantly influence attitudes towards a VSLE in both an upward and a downward extension. It emerged that the attitudes of customers from a bank initiating an upward extension (Capitec) differ from customers from a bank initiating a downward extension (Absa). Capitec and Absa customers differ in their evaluation of perceived quality, status fit, communication fit and brand image. The greatest difference among the two customer groups were caused by communication fit and perceived brand image. In this study Capitec customers evaluated their bank more favourably than Absa customers did. This result can be attributed to the direction of the extension and customers feelings towards it. It was advised that managers should thoroughly investigate the benefits and risks in implementing an upward or downward VSLE, since this study concludes that in either case brand image will be influenced.<br>AFRIKAANSE OPSOMMING: In die Suid-Afrikaanse mark het die kompitiese tussen banke geweldig gestyg soos die banke meeding om mark aandeel. Die Groot Vier banke (Absa, FNB, Standard Bank en Nedbank) word tans uitgedaag deur Capitec se eenvoudige dienslewering strategieë. Capitec is besig om dienste te lewer aan hul huidige kliënte, asook die gedeelte in die mark wat nog nooit voorheen van bankdiense gebruik gemaak het nie. Verder, is Capitec besig om kliënte van ander banke af te rokkel. Die Groot Vier sukkel om mee te ding met Capitec se innovasie rondom algemene bankdienste. Dus, word daar nou 'n situasie in die finansiële sektor geskep waar net die sterkstes sal oorleef. Die rede vir hierdie mededinging in die mark is as gevolg van Capitec se beweging na 'n hoër-inkomste mark. Die oorspronklike kliënte-profiel van Capitec word nou op ʼn prominente wyse verander. Absa, daarteenoor is besig om Capitec teë te werk deurdat hul laer-inkomste markte infiltreer. In beide gevalle is Capitec en Absa besig om 'n "vertical service line extension (VSLE" te implementeer. Die verskil tussen die twee banke is die rigting van die VSLE, waar Capitec 'n opwaartse VSLE implementeer het en Absa 'n afwaardse VSLE implementeer het. In die huidige literatuur word daar nie genoeg aandag gegee aan "service line extension" in vergelyking met "product line extensions" nie. Dus, die fokus van hierdie studie is op VSLE in die bankdienste sektor. Die primêre doelwit is om te bepaal of huidige kliënte se houdings teenoor die VSLE 'n beduidende invloed het op die handelsmerk. Verder, is ondersoek ingestel om te bepaal of daar 'n verskil is tussen 'n bank se kliënte wat 'n opwaartse VSLE implementeer en een wat 'n afwaartse VSLE implementeer. Die sekondêre doelwitte was om vas te stel of (1) kliënte se gehalte persepsie 'n effek het op hul houding teenoor 'n VSLE; (2) status ooreenstemming 'n effek het op kliënte se houding teenoor 'n VSLE; (3) ooreenstemming tussen kliënte se self-persepsie en die bank se kommunikasie 'n effek het op hul houding teenoor die VSLE; (4) kliënte se houding teenoor die VSLE 'n effek het op die handelsmerk; (5) daar 'n verskil is tussen kliënte van 'n bank wat 'n opwaarse VSLE implementeer en een wat 'n afwaarste VSLE implementeer interme van, gehalte persepsie, status ooreenstemming en hul ooreenstemming tussen self-persepsie en kommunikasie. In die geval van 'n opwaartse VSLE (Capitec) is dit bevind dat net kliënte se gehalte persepsie 'n beduidende invloed het op hul houdings teenoor die VSLE. In die geval van 'n afwaartse VSLE (Absa) is daar bevind dat kliënte se gehalte persepsie en kommunikasie „n beduidene invloed het op hul houdings teenoor die VSLE. In beide 'n opwaarste en afwaarste VSLE het kliënte se houdings teenoor die VSLE „n beduidende effek op die handelsmerkbeeld gehad. Status ooreenstemming tussen die huidige kliëntebasis en die kliëntebasis wat bereik wil word deur die VSLE, het geen effek gehad op kliënte se houding teenoor die VSLE nie. Verder, was dit bevind dat kliënte wat betrokke is by 'n bank wat 'n opwaarste VSLE implementeer (Capitec) verskil van die kliënte wat betrokke is by 'n bank wat 'n afwaarste VSLE implementeer (Absa). Capitec en Absa kliënte verskil in hul evaluasie van die betrokke bank se gehalte persepsie, status ooreenstemming, kommunikasie en handelsmerk evaluasie. Die grootste verskil tussen die twee steekproewe is by kommunikasie evaluasie en handelsmerk evaluasie. Daar is onder andere bevind dat Capitec kliënte hul bank beter evalueer as Absa kliënte. Hierdie bevinding kan verduidelik word deur die rigting van die twee banke se VSLE. Die gevolgtrekking is dat handelsmerkbeeld, ongeag die rigitng van die VSLE, beïnvloed word deur huidige kliënte se houdings teenoor die VSLE. Dus, moet bestuurders al die voordele en nadele in verband met 'n VSLE opgeweeg voordat 'n VSLE strategie geïmplemteer word.

This study investigates E-banking Operational Risk Assessment (ORA) to enable the development of a new ORA framework and methodology. The general view is that E-banking systems have modified some of the traditional banking risks, particularly Operational Risk (OR) as suggested by the Basel Committee on Banking Supervision in 2003. In addition, recent E-banking financial losses together with risk management principles and standards raise the need for an effective ORA methodology and framework in the context of E-banking. Moreover, evaluation tools and / or methods for ORA are highly subjective, are still in their infant stages, and have not yet reached a consensus. Therefore, it is essential to develop valid and reliable methods for effective ORA and evaluations. The main contribution of this thesis is to apply Fuzzy Inference System (FIS) and Tree Augmented Naïve Bayes (TAN) classifier as standard tools for identifying OR, and measuring OR exposure level. In addition, a new ORA methodology is proposed which consists of four major steps: a risk model, assessment approach, analysis approach and a risk assessment process. Further, a new ORA framework and measurement metrics are proposed with six factors: frequency of triggering event, effectiveness of avoidance barriers, frequency of undesirable operational state, effectiveness of recovery barriers before the risk outcome, approximate cost for Undesirable Operational State (UOS) occurrence, and severity of the risk outcome. The study results were reported based on surveys conducted with Nigerian senior banking officers and banking customers. The study revealed that the framework and assessment tools gave good predictions for risk learning and inference in such systems. Thus, results obtained can be considered promising and useful for both E-banking system adopters and future researchers in this area.

This study investigates E-banking Operational Risk Assessment (ORA) to enable the development of a new ORA framework and methodology. The general view is that E-banking systems have modified some of the traditional banking risks, particularly Operational Risk (OR) as suggested by the Basel Committee on Banking Supervision in 2003. In addition, recent E-banking financial losses together with risk management principles and standards raise the need for an effective ORA methodology and framework in the context of E-banking. Moreover, evaluation tools and / or methods for ORA are highly subjective, are still in their infant stages, and have not yet reached a consensus. Therefore, it is essential to develop valid and reliable methods for effective ORA and evaluations. The main contribution of this thesis is to apply Fuzzy Inference System (FIS) and Tree Augmented Naïve Bayes (TAN) classifier as standard tools for identifying OR, and measuring OR exposure level. In addition, a new ORA methodology is proposed which consists of four major steps: a risk model, assessment approach, analysis approach and a risk assessment process. Further, a new ORA framework and measurement metrics are proposed with six factors: frequency of triggering event, effectiveness of avoidance barriers, frequency of undesirable operational state, effectiveness of recovery barriers before the risk outcome, approximate cost for Undesirable Operational State (UOS) occurrence, and severity of the risk outcome. The study results were reported based on surveys conducted with Nigerian senior banking officers and banking customers. The study revealed that the framework and assessment tools gave good predictions for risk learning and inference in such systems. Thus, results obtained can be considered promising and useful for both E-banking system adopters and future researchers in this area.

One of the most important aspects of monetary policy is an understanding of the transmission process: the mechanism through which the monetary policy actions of the Central Bank impact on aggregate demand and prices by influencing the investment and consumption decisions of households and firms. Thus, commercial banks are regarded as conveyers of monetary policy shocks and are expected to adjust retail interest rates in response to policy shocks one-to-one. In practice, commercial banks adjust their retail rates in response to changes in monetary policy with a lag of several months and this delay is often viewed as an impediment on the ability of the Central Bank to steer the economy. Several reasons, such as credit rationing and adverse selection, switching costs, risk sharing, consumer irrationality, structure of the financial system, menu costs and asymmetric information are some of the causes advanced for commercial banks retail rates being sticky. In spite of the important role of pass-through analysis in the monetary policy transmission process, it has received very little attention in Sub-Saharan Africa, especially in Cameroon and Nigeria, which have implemented a series of reforms. To this end, this study gives a comparative analysis of interest rate pass-through in Nigeria and Cameroon using retail rates (lending and deposit) and a discount rate (policy rate) from January 1990 to December 2010 for Nigeria and from January 1990 to June 2008 for Cameroon. The study examines the magnitude and speed of retail rate adjustments to changes in the Central Bank policy rate as well as examining the possibility of symmetric and asymmetric pass-through in both countries. In addition, the study also investigates whether there is pass-through of monetary policy from one country to the other. The empirical analysis employs four different types of co-integration techniques to test the presence of a long run co-integrating relationship between retail and the policy rates in order to ensure that the relationship detected is robust. Three sets of analyses are carried out in the study. Following Cottarelli and Kourelis (1994), the study employed a co-integration technique, firstly, to analyse pass-through for the entire sample, secondly, to analyse symmetric and asymmetric pass-through using a ten year rolling window analysis in an error correction framework. Finally, the policy rates were swapped around to investigate if there are transmissions of impulses from one country to the other. Overall, evidence from the entire sample and rolling window analysis suggests that monetary policy in Cameroon is less effective. This is perhaps one of the reasons why the Banque Des Etats De L’Afrique Centrale (BEAC) is unable to sterilise the excess liquidity of the banking sector in Cameroon. The long run pass-through of 0.72 and 0.71 for the entire sample, and the average long run pass-through for the rolling window of 0.78 and 0.76 for the lending and deposit rates, suggest that monetary policy is highly effective in Nigeria compared to Cameroon. The empirical evidence confirmed asymmetric adjustment in six rolling windows in the lending rate in Nigeria. Three rolling windows indicated that the direction of rigidity is downward, supporting Scholnick’s (1996) collusive pricing arrangement between banks, and the other three suggested that the lending rate is rigid in the upward direction, corroborating Scholnick’s (1996) customer reaction hypothesis. The deposit rate in Cameroon was also found to adjust asymmetrically and the direction of rigidity is downward, supporting Hannan and Berger’s (1991) customer reaction hypothesis. The investigation of impulse transmission between the two countries revealed that only the policy rate in Nigeria exerts some influence on the deposit rate in Cameroon. Policy recommendations are also discussed.

In Nigeria regulators have gradually adopted Basel I, II, and III, although implementation and enforcement have been slow. The impetus for Basel adoption has come primarily from regulators, who are embedded in international policy networks. They consider Basel II and III the most appropriate set of regulatory standards to stabilize and manage risk in Nigeria’s large, internationalized banking sector. While Basel adoption was not a salient issue among Nigeria’s politicians, Nigeria’s large internationally active banks welcomed the implementation of Basel II as an important means to enhance their competitiveness and signal soundness to markets. These banks play an important role in providing employment and access to finance for the private sector, and their resolution would meet with resistance from politicians and lead to a loss of confidence in Nigeria’s banking sector.

The purpose of this chapter is to assess the contribution of the banking sector’s recapitalization to economic growth. Secondary data of all banks in Nigeria for 1980-2006 from Central Bank of Nigeria were used for the study. The findings of the study revealed higher mean GDP (N86.229 trillion) at post-recapitalization era compared to pre-recapitalization era (N56.860 trillion). Furthermore, 37% and 25% growth in GDP were recorded at post- and pre-recapitalization era, respectively. Selected indicators (bank credit, asset, saving deposit, and total loan) were all higher in the post recapitalization era. The result of t-test showed that there was a significant difference in GDP at pre and post recapitalization era at 5% significance level holding inflation constant. Bank asset had significant effect on GDP in the post-recapitalization era. Bank performance indicators could not fully account for growth and development in Nigeria’s economy though growth was recorded. Under subsequent initiatives, bank asset and total loan increased massively, while bank credit and saving deposits were stepped up via credit and savings incentives provisions for greater impact on growth in Nigeria.

This chapter examines how the board of directors of financial organisations and the regulatory bodies have responded to climate change as it has occurred over time, with particular reference to the banking sector in Nigeria. It reflects on the Sustainable Development Goal (SDG) 13, which is about taking urgent action to combat climate change and its impacts by both banks and government regulatory organisations. The chapter is hinged on the triple-bottom line theory and considered various existing international environmental initiatives, and how Nigerian banks have responded to them. The chapter concludes that though a lot has been done by the Nigerian banks to act on initiatives towards climate change, there is more to be done on the part of the board of directors and the regulatory authorities of the listed banks considered.

Electronic commerce (or e-commerce) is the popular term for doing business electronically. According to Haag, Cummings, and McCubbrey (1998), for businesses, electronic commerce includes performing transactions with customers over the Internet for purposes such as home shopping, home banking, and electronic cash use; performing transactions with other organizations through the use of electronic data interchange (EDI); gathering information relating to consumer market research and competitors; and distributing information to prospective customers through interactive advertising, sales, and marketing efforts. Benefits of e-commerce to companies include a wider potential market (i.e., global access); lowering of transaction costs; increase in the speed of transactions; improved economies of scale; minimization of human intervention in business processes; and unlimited access to product information for customers (Sesan, 2000; Wood, 2003). While a few developing countries such as Costa Rica are making inroads into electronic commerce (Travica, 2002), many others are slow in its adoption. For example, a study, which rated 42 developing countries on their “e-readiness,” found that Taiwan and Estonia had emerged as leaders among developing countries in the ability to conduct e-commerce, whereas Russia, much of the Middle East, and Africa were lagging behind (Anonymous, 2000). One of the countries included in the study but that rated poorly in its e-commerce efforts is Nigeria. In this articl, we shall be discussing the challenges being faced by the country as it grapples with the adoption of e-commerce.

Globalization movements around the word caused countries to be faced with crisises successive. The financial sector has seen major losses from economic crises. Developments in the aftermath of the economic crisis has led to some changes especially in the banking sector, furthermore leading to the growth of the financial sector. In recent years, after the international economic, financial, technological and social developments, activities of banks have increased. Banks, in line with improving economic conditions and changing customer demands have been restructured in order to provide the best service to customers. First, banks increased product, service, quality, variety, technological advances, demand for advertising expenditures, customer satisfaction and efforts on risk management. After 1980, the Turkish banking sector entered a rapid change period in technology, by taking advantage of the facilities to be brought. However, when crises in November 2000 and February 2001 have been added to the previous problems in the banking system, sector has become more fragile. After the 2001 crisis the banking sector has entered the configuration process. The aim of this study is to investigate in detail the process of rapid change after the 2001 crisis, by comparing with the pre-crisis and after the crisis of Turkish banking sector in 2001. In this study, banks in the market will be examined within the framework of a lot of different topics. The changing face of the banking sector after the 2001 crisis in Turkey will form the basis of the study.

This study tested the attributes of the theory of diffusion of innovation empirically, using Automatic Teller Machines (ATMs) as the target innovation. The study was situated in Jos, Plateau state, Nigeria. The population comprised banks customers in Jos who used ATMs. The sampling frame technique was applied, and 14 banks that had deployed ATMs were selected. Cluster sampling was employed to select respondents for the study. Data collection instrument was a structured questionnaire administered to 600 respondents of which 428 were returned giving 71.3% return rate. Principal Factor Analysis, and Multiple Regression were the analytical techniques used. The demographic characteristics of the respondents revealed that most of them were students and youths. From the factor analysis, it was revealed that the respondents believed in their safety in using ATM; that ATMs were quite easy to use and fit in with their way of life; that what they observed about ATMs convinced them to use it and that ATM was tried out before they use it. The constructs Relative Advantage, Complexity, Compatibility, and Trialability were all found to have a significant impact on the Attitude towards ATM, which in turn had a significant impact on the Intention to use it. Relative Advantage and Compatibility had almost the same weight of impact on Attitude; while Observability had the highest impact on attitude. To increase the diffusion of ATMs, it was recommended that banks should ensure enhanced salience of ATM to customers’ needs, greater compatibility of ATM to customers banking norms and lifestyle, less complex and easy to use system and opportunity for adopters to experiment with the system before using ATMs.