1 Empirical analysis of commercial banks lending policies to the private sector
The desires to carry out this research work on new banks grose from the fact that the central bank of Nigeria policy on the establishment of these new in this country has been posing a lot of problems, which resulted to the unsatisfactory performance, and problem unpending failure of the new banks. This paper therefore aims at examine the problem of these new banks, the impact of these problem with banking industry and the possible strategies in by which such problem cam be solved.
This research work is not in any way an exhaustive study of problem of new banks in Nigeria because to get a clear, through and exhaustive over view of these problem of new bank in Nigeria would involve a Leary expenditure beyond the finance of this research. The following areas were therefore studies causes of bank failure. How to unproved the safety of banks organizational problem of new banks project of new and policy recommendation made, conscious of the fact that many unportant problems relating to the subject were not treated because of time and money.
Government, established bank for development purpose and the role played by banking industry in an economic development cannot be over emphasized Some banks are owned by government for example first bank of Nigeria union bank etc.some by the combination of government and individuals. However, banks in Nigeria and the other countries of the world are established to carry out the following functions.
1, To safeguard money and over valuables.
2, Mobilization of savings and other deposits.
3, Extension of credit facilities to customers.
4, Management of customer’s investment and advising on insurance of maters.
5, Creating money.
6 provide facilities for the financing of international trade example to commentary credit.
7, providing foreign exchanges facilities for trade.
8, proving advising services
However, the above functions and duties of banks is just mention but, a few because banking industry is dynamic in nature. It raries on public confidence and due to its influence on the nation economic life, it need high quality management and organizational structure with which it can attain maximum operating efficiency and profitability.
Since the advent of structural adjustment programmed (SAP) and it’s deregulating polities, banking industry in Nigeria has been receiving a number of policy shocks and the new bank felt it most such policy or guidelines include. The central bank of Nigeria guideline in reserve requirement and limited capital based for establishing of new banks.
Other directives are the withdrawal of government banks the payment of interest on current account cancellation of foreign denominated naria loans. The liberalization of foreign exchange market. The introduction of the controversial national deposit insurance corporation apart from this policy the new banks are facing other problem such as competition. The cause of these competition that new bounds in the banking adverse is an increase in the number of banks and the simultaneous invasion by other financial institution of what had previously been regarded as the traditional banker preserve .the establishment of number of branches in rural area where banking has not been inculcated is another problem.
Some examples of the new banks in operation are: