Electronic Banking in Nigeria: Problems and Prospectsks in Nigeria

An unregulated banking financial institution might be fraud with unmanageable risks for the purpose of maximizing its potential return. In such a situation, the banking financial institutions might find itself in a serious financial distress instead of improving its financial health. Consequently, not only the depositors but also the shareholders will be deprived of getting back their money from the bank. The deterioration of loan quality also affects the intermediative efficiency of the financial institutions and thus the economic growth process of the country. This the reason for which the banking financial institutions are being regulated in all countries. The banking financial institutions are also the most regulated among all types of financial institutions in all countries, because of their substantial role in payment mechanism (in addition to protect the loan portfolio from decaying).

The overall development of an economy is a major factor that has significant impacts on the development of the economy's financial markets. Since well-functioning financial systems offer good and easily accessible information, they lower the costs of transaction. This in turn enhances resource allocation and strengthens economic growth. The financial services industry consists of various systems such as stock markets and banking systems that enhance growth and help in poverty reduction. However, commercial banks tend to dominate the financial system during low levels of economic development while stock markets become more active and effective during periods of high levels of economic development ("Financial Sector", n.d.). The other important systems in the financial services industry include sound macroeconomic policies, shareholder protection, and good legal systems.

The task of putting this project into shape calls for the support of many hands. Firstly I would like to thank the Almighty Allah for giving me the life, without which I

Banking can be defined as a process through which the finances of a country is controlled and created. These finances are loaned to gain profit through interest. In recent times banks perform varied functions like ATM cards, safeguarding of valuable things, providing lockers, credit cards and online banking. Banks and banking Katy and in other American cities has helped the world economy. The simple method of safeguarding money and lending it to the borrowers leads to a productive flow of money. This process has helped in the development of economies of varied countries.

Banks are the most significant players in the Indian financial market. They are the biggest purveyors of credit, and they also attract most of the savings from the population. Dominated by public sector, the banking industry has so far acted as an efficient partner in the growth and the development of the country. Driven by the socialist ideologies and the welfare state concept, public sector banks have long been the supporters of agriculture and other priority sectors. They act as crucial channels of the government in its efforts to ensure equitable economic development.

Banking system is the most important component in the financial system in each and every country. As well, in Sri Lanka, bank industry is the major influencing industry to Sri Lankan economy. Therefore the Sri Lankan Government has identified, it is essential to stable the financial sector in order to achieve the objective of increasing the Per Capita Income beyond US $ 4000 by 2016.

Globalization has led to innovation in information technology, more specifically, with the invention of the Internet, information can be sent around the world at lightning fast speeds.

The financial markets are increasingly and highly interconnected, which means that the regulation of the financial services is becoming globalised as well, since most of the bigger firms operate all over the globe, the standardization of the regulation is a very common practice nowadays, making very difficult especially for developing countries keep up with the regulation. The financial crisis of 2008 was one of the most devastating and longest crises the contemporary world has seen, after the crisis a set of reforms, institutions and regulation were created, to avoid this happening again.

Financial institutions are the most important institution in the development and financing the countries regardless of the developing countries, the countries has developed or is still underdeveloped. A large role in the country cause financial institutions must be sensitive and transparent in governance. However, not all financial institutions are banks. Financial institutions are included bank, finance companies, merchant bank, credit and leasing companies, national savings banks, co-operative bank, discount houses, factoring companies and so on. In addition, financial institutions can be classified into two which are depository and non-depository institutions. The common function among all these institutions is they were assigned to mobilize the fund from those who had fund to those who short of fund. So, we know that they were also known as financial intermediaries.

Basel III is a far-reaching set of reform measures developed by Basel committee on banking administration and risk management of banking industry. The third segment was developed in response to the deficiencies in financial regulation which were highlighted in 2007 -08 financial crisis. The outcome of the 2008 Financial Crisis (which begun in 2007), has witnessed numerous changes one of the changes was the need for an enhanced Basel ll framework which had failed miserably during the 2007- 2008 financial crunch. After the global financial crisis, the G20 and the Basel Committee on Banking Supervision planned a series of new bank capital and liquidity guidelines called Basel lll. The first version of Basel lll was drafted and published in late 2009. Later on 12th September 2010 the Basel committee announced the new capital and liquidity ratios and the timeline by which banks need to fulfill the requirements. Once implemented new changes will have a drastic impact on the banking sector. It will mark an end to asset driven liability management which will force the banks to adapt the characterized banking or we can say the size of banks balance sheet will be dependent on their ability attract funds rather than their capacity to secure assets. A cautious study of 2009 accord shows minimal capital requirements, administration practices and revelations to the

The banking sector is faced with increasing challenges as the modern day society evolves. In the aftermath of the economic crisis, the population came to become more demanding of the banking sector. In other words, the various categories of stakeholders such as customers, employees, business partners, the public and so on became more vocal and forwarded more demands. The new challenges of the banking sector refer to the operation in a means in which they create benefits for the overall wellbeing of the communities in which they operate.

According to Langdon and Langdon, (2006) IT including computer based information systems used by an organization and their underlying technologies have propelled changes in the banking sector Technological innovation for that matter affects not just banking and financial services, but also the direction of an economy and its capacity for continual and sustainable growth. Most banking industry and development analysts assert that technological change is one of the important factors underlying the dynamics in the banking industry structure and performance today which leads to cost competitiveness and diversification into new lines of business to improve profitability, through strategic positioning and processes.

Singapore Financial System is one of the world’s largest financial systems. According to Mishkin (2009), Financial System refers to a system that consists of the markets and institutional units that interact for the purpose to provide facilities such as payment and transfer systems and organizing the funds for investment from saved surplus funds to units who have shortage

The financial sector has been pertaining under pressure to the rising inflation and round the corner elections have been demanding the report card of the government. Amidst such conditions the talk about the financial sectors of the country would definitely spur a discussion on the issue of new bank licenses by the RBI. The discussions have nonetheless been hot-Why?? Well that is the part that has caused the hue and cry. The purpose that the RBI wishes or hopes to accomplish and the steps being taken is indeed speculative and doubts have been raised over the decision and what waits with it? It would either fulfill what it plans on doing or fail to fall back at the same stage as currently prevailing. A little look into what has been happening and we would be at a better position to understand the pros and cons of the whole scenario at hand.

• To determine the effects of the implementation of CBS on consumers, banks and the economy as a whole.