Problems, Solutions and Prospects for the Development and Progress of the Banking Industry in Nigeria

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AHMADU BELLO UNIVERSITY ZARIA FACULTY OF ADMINISTRATION DEPARTMENT OF ACCOUNTING AUDIT MANAGEMENT ACCT 707 USENI YUSUF ONWUDE MBF/ADMIN/0483/2009-2010 [pic][pic]INTRODUCTION SOLUDO.C (2004: 4) The Nigerian banking system has undergone remarkable changes over the years, in terms of the number of institutions, ownership structure, as well as depth and breadth of operations. These changes have been influenced largely by challenges posed by deregulation of the financial sector, globalization of operations, technological innovations and adoption of supervisory and prudential requirements that conform to international standards. It is widely believed that savings and investment must go hand in hand for…show more content…
Also different banks employ different banking applications software to gain competitive edge and introduced various electronic products. The challenge here is that some of these ICT packages are not compatible or were not properly understood before been introduced and banks have already incurred huge costs in the acquisition of these technologies SOLUTIOS Economic environment: With the federal government’s intentions to increase the security, electrical and infrastructure aspect of the economy, these banks have an opportunity to assist prospective business men tap into such lucrative ventures. Prohibiting banks from using depositors’ funds for proprietary trading, private equity or venture capital investments. Close monitoring and stiffer penalties to banks that do not adhere to the federal government’s directive in helping other sectors of the economy grow especially the manufacturing aspect of the economy. Regulatory, Supervisory and legal environment: Akpala P.E (2OO6:8) Risk based supervision in place of compliance based, supervision was introduced, and Closer Corporation between the various bodies should be strengthened. Corporate governance: Reform measures will also include education of board directors on their responsibilities and on the unethical and allegedly fraudulent activities and the penalties they carry. Prohibiting banks from using depositors’

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