Epsilon Archive for Student Projects

Abstract

This research paper examines the impacts of the global financial crisis on the Nigerian banking industry. The Central Bank of Nigeria (CBN) initiated the first phase of the bank consolidation in 2005, to provide a strong and reliable banking sector that would guarantee the safety of depositor’s money. The consolidated banks were expected to play a very active role in the economic growth and development of Nigeria. The consolidation exercise was remarkable as some of the Banks merged while other went for outright takeover of the assets and liabilities of the weak banks. Within the short period of consolidation there were positive changes in the entire system, as interest and lending rates became stabilized. And some of the consolidated banks became partners and correspondent banks to foreign counterparts. Unfortunately, the current global financial crisis, which has it roots in the United State of America and Europe, has spread to other part of the world. The crisis has eroded the confidence of the general public in the Nigerian banking industry, despite their consolidation. Even the Nigerian Stock Market (NSM) which is expected to act as buffer of fund, is not left out of the financial crisis. This research paper will therefore attempt to examine the impact of the global financial crisis on the Nigerian banking industry