EFFECT OF GLOBALIZATION ON BANKING OPERATION IN NIGERIA.
(A CASE STUDY OF FIRST BANK NIGERIA PLC.)
was carried out devoid of any electronic devices until the middle of 1980s. The
operations of bank were mostly manual and fraught with attendant problem of
poor services delivery.
era of new generation bank brought into the banking industry competition and
need to provide quality services to the banking public.
brought about the need for some form of automated system. Kyari (2002), acknowledged this fact when he admitted that banks
began to invest in computer for basic office in automation and processing, and
then later extended to provision of banking services.
era also brought about massive installation of computer system and the
introduction of the first set of electronic banking system devices such as
automated teller, machine (ATM) to
the banking public with the establishment of more bank in the early 1990s that
led to the integration of banking system and ledger bank were replaced by
growing need for better services made it mandatory for banking to develop
faster settlements among banks that lead to the funding of Nigerian
inter-settlement scheme- granting owned by banks.
central bank in response to this also began the computerization of its system
and processes. The introduction of the Magnetic Ink Character- Recording (MICR) check in the number of days it takes
to clear a cheque through the Nigerian banking system.
Magnetic Ink Character Recording (MICR)
was yet to be very successful through by middle of 1990s, most banks had
introduced some forms of automation or computerization in their operation.
financial globalization become popular, financial liberalization efficiency in
the financial sector, many African countries embarked on financial
liberalization reforms as part of their recommend.
crucial message of the financial liberalization, thesis (Mekinnum 1973), show that it is lack of competition that bring
inefficiency to this sector, interest rate liberalization is a first step, but
it is recognized that this alone is not likely to generate competition in the
market because of the already oligopolistic nature of it.
not only is there a need to increase the number of players in this market for
which a country may be required to go beyond its own domestic boundary.
increase the number of players there is need to remove entry restrictions, so
that non- financial intermediaries as well as foreign banks can enter the
market easily. In order to top a large post of savings, there is a need, not
only to remove control, but also to relax laws relating to takeover and merging
implies that there is need to liberalize the external sector of the bank
sector. Forced with the gravity of financial crises that occurred in several
countries between 1994 and 2002, a number of questions have been raised regarding
the underlying basis of financial globalization especially cross-boarder
1.1 BACKGROUND OF THE STUDY
background of this study is to evaluate the effect of globalization in banking
operation in Nigeria with particular reference to First Bank Nigeria Plc,
Kaduna, Kakuri branch Kaduna South.
specific objectives of this study are as follows:
assess the extent at which globalization has influenced services delivery in
the banking sector in Nigeria.
examine how globalization has influenced banking operations in Nigeria whether
positively or negatively.
examine the extent at which globalization has influenced the management of
banking industry in Nigeria.
1.2 STATEMENT OF THE PROBLEM
provision of quality services has been the major problem facing the Nigerian banking
Nigerian banking customers are becoming more demanding in terms of quality
services. Some of the problems facing the Nigerian banking operations are as
Time spent when collecting
cash from the bank.
It takes some days before funds
can be transferred from branch of the bank to another.
It takes quite some times
before cheque are being cleared.
Value data is not efficient
in the banking sector.
these problems need to be addressed so that banking operations could be more,
1.3 PURPOSE OF THE STUDY
purpose of the study is to evaluate the effect of globalization on our banking
operation in Nigeria
with particular reference to First Bank Nigeria Plc, Kaduna, Kakuri branch, Kaduna South.
1.4 SIGNIFICANCE OF THE STUDY
study shall serve as a reference point to students of banking and finance, bank
practitioners and policy formulation in banking industry.
this study the inefficiency that exist in the banking operation are thrown
opened to the public and researchers in the discipline. It also helps to
understand how globalization could bring efficiency in services delivery to
customers through the introduction of modern technology into banking operations.
the study, one shall be able to know why First Bank Nigeria Plc, is performing
better than some other Banks in Nigeria
through the adoption of new technologies in its operations.
1.5 RESEARCH QUESTIONS
study used primary data that were generated through the administration of
questionnaires and oral interviews.
population from staffs and customers of First Bank Nigeria Plc.
statistical technique used in the study is chi-square (X2) and t-test was used.
1.6 STATEMENT OF HYPOTHESIS
of banking operations has not improved services delivery of First Bank Nigeria
Globalization of banking operation has improved services delivery of First Bank
1.7 DELIMITATION OR SCOPE OF
scope of this study is that, it focused on the effect of globalization on
banking operation in Nigeria.
study specifically examines the effect of globalization on First Bank Nigeria
limitation of the study is that the researcher was not been able to visit all
branches of the bank in the country due to financial constraints and time
availability for the study.
1.8 DEFINITION OF TERMS
Ø Banking: It
is a bank business whose principle operations are concerned with the
accumulation of the temporary, idle money of the public for advancing some to
others for expenditure.
Ø Bank Transfer:
Is a method of making payments in which payment made at any branch of any bank
for the account of a payee with an account at any branch of the same bank or
Is the integration of trade relation and production, the decision across the
globe by economic agents who employ investment capital and technology around to
take advantage of environments where there is competition and which can
manifest to a higher return.