The Impact of Recapitalization of Banks on Lending In Nigeria Banks (A Case Study of Union Bank of Nigeria Plc, Ilorin)

TABLE OF CONTENT

Title Page                                                                                  i

Certification                                                                              ii

Dedication                                                                                 iii

Acknowledgement                                                                   iv

Table Of Content                                                                     v

CHAPTER ONE

1.0     Introduction                                                                    1

1.1     Background Of The Study                                           1

1.2     Statement Of The Problem                                                   

1.3     Justification Of The Study                                                    

1.4     Objective Of The Study                                                         

1.5     Hypothesis                                                                               

1.6     Scope Of The Study                                                                

1.7     Organization Of The Study                                                  

1.8     Limitation Of The Study                                             

CHAPTER TWO

2.1     Literature Review                                                                  

2.2     Review Of Related Literature                                              

2.3     Lending In Banking Industry                                              

2.3a   Definition And Types Of Lending                                        

2.3.1  Lending Polices And Objectives                                           

2.3b   Canons Of Lending                                                                 

2.3.2  Lending Techniques                                                               

2.4     New capital base in banking sector                                     Reason For Pre-Capitalization                                                     

2.4.1     Economy Benefit To The Country                                              

2.5           New Capital Base And Bank Lending                                        

CHAPTER THREE

3.0     Research Methodology                                                           

3.1     Sources Of Data.                                                                     

3.2     Research Question And Hypothesis                                    

3.2.1  Research Question                                                          

3.2.2  Hypothesis                                                                               

3.3.    Data Collection Instrument                                                  

3.4     Administration Instrument                                                  

3.5     Analysis Of Response                                                            

3.6     Analytical Procedures                                                            

CHAPTER FOUR

4.0     Presentation And Analysis Of Data                                    

4.1     Presentation And Analysis Of Research Problem            

4.2.    Presentation And Analysis Of Data                                    

4.3     Finding And Discussion                                                        

CHAPTER FIVE

5.0     Summary, Conclusion And Recommendation                   

5.1     Summary                                                                                  

5.2     Recommendation                                                                    

5.3     Conclusion                                                                               

5.4.      Further Study On This Study                                              

REFERENCES                                                                     

APPENDIX I                                                                           

APPENDIX II                                                                          

CHAPTER ONE

1.0   INTRODUCTION

1.1   BACKGROUND OF THE STUDY

The impact of Recapitalization of banks on lending in Nigeria Banks demands critical view. Since lending is one of the roles of banks which depends on the available capital base of the banks, any attempts by Central Bank to increase the pre-determination of banks lending will have measurable and remarkable impact on the whole economy.

To enhance financial stability of banking industries in Nigeria, reduce the reluctance of commercial banks to lend to the public and safeguard the stability and improvement of banks, the Central Bank of Nigeria consistently increase the minimum capital form as low as 12 million and 20Million for merchant and commercial banks relatively before 1992 to N25Billion in 2005, then in 2011, the new Capital base is now N100Billion naira.

With stipulated minimum capital base of N25billion, some banks could not meet up and thereby merge were inevitable other banks that could not, were liquidated at January 2, 2006. Union bank of Nigeria Plc and 24 other banks scaled together 14 banks including Trade bank. There said to be liquidated 25 banks of solid capital base of N25Billion now have more money to lend to the public at lower interest without fear of getting liquidated.