Recapitalization is the most recent trend haunting the financial sector of the Nigerian economy. It was introduced in the form of an official order by the Central Bank of Nigeria (CBN) and was issued to banks to consolidate their capital bases to the tune of a minimum of N 25 billion to be raised by each bank before 31st December 2005 thus causing many banks incapable of raising such fund to merge with other bank (Johnson, P.F.) Recapitalization involves a fundamental change in the ... read more

A bank is a financial institution licensed by a government. Its primary activities include borrowing and lending money. A bank, be it old generation or new generation bank is a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. What differentiate new generation bank from old generation bank are the quality of services, the level of technological advancement etc. A bank links tog... read more

The level of fraud in the present day Nigeria has assumed an epidemic dimension. It has eaten deep into every aspect of our life to the extent that a three old child talks about yahoo mail or 419, newly discovered sobriquet for advanced free fraud that is hunting our banking industry. Nigeria, with all of its natural and human resources tethers on the brink of destruction because of fraud. Much of what we do is “cutting leaves” instead of dealing with the root problem. Generally, fraud ta... read more

The dynamic role of government agencies in the development of small and medium enterprises is an engine through which the growth and development objectives of developing nations can be achieved which has been recognized and stated in the literature is quite interesting. These enterprises have a very important impact on the life of everybody in the society. The small independence business are everywhere and in every line of work, they can also be seen in every community. This business is as old a... read more

Electronic banking is simply operating the banking system through the internet and it signifies both global public network and a family of technologies. In Nigeria, the banking industries are basically on-line at real time with web site which is restricted only to information and also it restricts most of their dealings to E-banking via the internet and not internet banking proper, effective cash management via E-banking on the other involves managing the motives of a firm in order to maximize c... read more

Attempts to explain the operation of commercial banks began with the inception of banking institution. Lending has become a vital role in banking operations because of its direct effect on economic growth and business department. In most countries, banks and their lending activities have useful integrated into government policy formulation. As far as banks are concerned, their role as lenders is important as that of deposit taking into consideration; the interrelationship in banking system. All ... read more

The Nigerian banking industry has witnessed tremendous changes and expansion since the mid 1980s. Unfortunately the growth and expansion in the sector are not the manifestation of a sound or vibrant banking system known anywhere in the world. Most banks in Nigeria are characterized by inadequate capital base, poor services, high rate of bankruptcy, lack of management expertise, bad debt syndrome and greater exposure to fraud. In addition, many have poor database and lack of reliable information ... read more

Monetary policy entails the government policies aimed at changing the quantity of money or credit condition. In every economy, after fiscal policy, the next most powerful macro-economic stabilization is monetary policy. In fact Monetary and fiscal policies are expected to work together as complements to achieve one goals of a sound macro economic management that include amongst other domestic price stability external sector viability as well as enhance efficiency in resource allocation, distr... read more

The revitalization of the agricultural sector has been the cornerstone of the government development policy. This is aimed at moving the country quickly to self-sufficiency in food production of agricultural raw materials for domestic agro-based industries. The need to increase agricultural productivity is implicit in the fact that It remains the leading non-oil sector of Nigerians population. The main objective of the agricultural policy as laid down by “Agricultural Policy for Nigerian”- 1... read more

Banking Industry has to be good at developing new products. It must also manage them in the face of changing tastes, technologies, Interest rates, exchange rate and competitions. Every product seems to go through a life cycle. It must go through several phases, and eventually die as new products that better serve consumer needs came along. The product life cycle presents two major challenges, First, because all products eventually decline, the bank must find new products to replace the declining... read more

In both developed and developing countries, the small scale industry is seen as the vehicle for rapid industrialization, sustainable economic growth and development, poverty alleviation as well as the seed bed of innovation and employment generation. It goes without saying therefore, that small scale enterprises have the potential of becoming the engine of the economic growth in any country (http://www.snbd.com, July 8 2010). Because of this paramount importance of small scale businesses, the... read more

The banking industry which is various bank put together to this industry consist of the central, commercial, merchant, development and saving banks. Central bank being the apex bank. Though banks are classified according to their functions, a detailed study of their various functions showed that they have common features and functions but with a slight and important distinction. Just like other human activities, banking has a history which dates back to the 2500BC. The early known bankers hav... read more

Automated Teller Machines (ATM) are devices used by bank customers to process account transactions. Typically, a user inserts into the ATM a special plastic card that is encoded with information on a magnetic strip. The strip contains an identification code that is transmitted to the bank’s central computer by modem. To prevent unauthorized transactions, a personal identification number (PIN) must also be used by the user using a keypad. The computer then permits the ATM to complete the transa... read more

The consolidation of banks has been the major policy instrument being adopted in correcting deficiencies in the financial sector. The economic rationale for domestic consolidation is indisputable. An early view of consolidation in banking was that it makes banking more cost efficient because larger banks can eliminate excess capacity in areas like data processing, personnel, marketing, or overlapping branch networks, cost efficiency also could increase if more efficient banks acquired less effic... read more

The Central Bank of Nigeria's responsible for implementing monetary policy, regulating and supervising banks, and operating the payments system. With these responsibilities come the authority to raise and lower national interest rates in the banking industry. Interest rate movements help balance inflation and keep the economy stable. When the economy slows and inflation is high, the CBN raises interest rates to change consumer behavior Interest has been variously defined both by conventional ... read more

A business combination takes place when two or more business organization come together to form a single economic unit. Business combinations; could take the form of merger and acquisition where two or more previously autonomous concerns come together under common control, there is a formation of a new company, which acquires the (assets and possible the liabilities) of two or existing business. Merger and acquisition are the fastest ways for a business to dramatically change its position i... read more

The Nigerian banking industry has witnessed tremendous changes and expansion since the mid 1980s. Unfortunately the growth and expansion in the sector are not the manifestation of a sound or vibrant banking system known anywhere in the world. Most banks in Nigeria are characterized by inadequate capital base, poor services, hug rate of bankruptcy, lack of management expertise, bad debt syndrome and greater exposure to fraud. In addition, many have poor database and lack of reliable information o... read more

This chapter defined the meaning of financial institution, how they perform their function on the small scale industries and how they help them to regulate their business. It tells us the meaning of the small scale industries and the historical background of the small sale industries how they perform their function in the development of the Nigeria economy.

The Financial Function has always been important in business management. Irrespective of differences in structure, ownership and size, the Financial Organisation of the enterprise ought to be capable of ensuring that the various finance functions: - Budgeting and controlling are carried out with the highest degree of efficiency. The profit ability of any business depends largely upon the manner the financial functions are performed and related to other business function. During the developing... read more

Risk Management is the identification assessment and prioritization of risks. It is the effect of uncertainty on objectives, whether positive or negative followed by coordinated and economic of application of resources to monitor and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities (Okeh, 2006). The survival of every commercial bank depends on its ability to manage its risks and loans or advance portfolio effectively. However in the r... read more