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This Section Analyses The Internationalisation Process

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This section analyses the internationalisation process the case firm “Beta. Beta is one of the Nigerian “new generation banks”. The Nigerian new generation banks are banks that were established in the 1990’s and grew rapidly to become top banks in the country. “Beta” evolved and expanded rapidly in the 1990’s and in the early 2000s to become one of the largest banks in Nigeria with a strong present in the West African region and a subsidiary in the UK. This case firm is chosen because of the following reasons, (a) Beta is one of the top banks in Nigeria (b) the bank have internationalised with subsidiaries in several countries outside Nigeria (c) the bank is one of the pioneer of foreign expansion of the Nigerian firms (d) the bank…show more content…
By 1999 about 144 banks were in operation and by the end of 2003, a total of 89 banks with 3,282 branches network across Nigeria. According to Adeleye, Iheanachor, Ogbechie, and Ngwu (2015), these banks were weak in both structure and operations comprising of low capital base, weak insolvency, and illiquidity, poor ratings and asset quality; oligopolistic structure and weak corporate governance. The banks were also overdependence on public-sector funds and income from foreign-exchange trading as they also lack the capacity and capability to support growth in the real sector of the economy.

As a result, the sector was confronted by rampant bankruptcies, collapse, and breakdown of several banks. This was a source of concern for the regulators and the general public because several customers and investors lost their life savings to dubious bank operators. The appalling situation in the sector leading to 2004 compelled the bank regulators “Central Bank of Nigeria (CBN)”, to decisively intervene to restore the public confidence in the banking sector and the financial system of the country (B. Adeyemi, 2011). In 2001, a deregulation in banking sector saw the in the issuance of universal banking licences to several of banks to operate as retail bank
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