THE PROBLEMS OF NEW BANK IN NIGERIA
(A CASE STUDY OF CITIZEN INTERNATIONAL BANK OF NIGERIA ENUGU)
ABSTRACT
  This paper aims of examining the problems new banks the impact of the problem on the banking industry and the possible strategies by which such problems can solved .however ,personal  objective part from academic fulfillment made this plausible ,hence it did not subscribe to the particular  economies theories ,rather the various problem of new banks prevalent in Nigerian are studies .To this end ,the look is designed to serve as a reference guide to both students who wish to know about the problems of new banks and also to the policy making body of the government ,the central bank of Nigerian                 This research work is not in any way an exhaustive study of problem of new bank in Nigerian ,because to get a clear ,thorough and exhaustive overview  of these problem of new  bank in Nigerian would include    a heavy expenditure beyond the finance of this research .the following areas was therefore  studied causes of bank failure ,how to improve the safety of banks organsational problem of new banks prospect of new bank and policy recommendation made ,conscious of the fact that many important problem vela try  to the sudsiest were not treated because of time and money .
TABLE Of CONTENTS
CHAPTER ONE
 .1.0 Introductions
1.1    Statement of problem
1.2     Purpose   
1.3    Significance of the study
1.4      Statement of hypothesis
1.5    Scope of the study
1.6    Limitation of the study
1.7     Definition of terms
CHAPTER TWO
 2.0 REVIEW OF RELATED LITERATURE
2.1   Function of bank in Nigerian
2.2      The problem of new banks in Nigerian
2.3      Withdrawal of government funds  from bank Beth commercial and merchant bank
2.4      Problem payment of interest on current account
2.5      Problem of Defaults in inter-sale interest
2.6      Causes of bank failure
2.7      Management of citizen bank of Nigerian  -
 CHAPTER THREE
3.0                  RESEARCH DESIGN AND METHODOLGY
3.1                  Sources of duty -
3.11          Primary duty
            3.12          Secondary duty -
3.2                  Sample used
3.3                  Method of investigation
      CHAPTER FOUR
        4.0   DATA PRESENTATION And Analysis
         4.1 Data presentation and analysis
 4.2 Test of hypothesis
               CHAPER FIVE
    5.0   Summary Of Findings Conclusion And Recommendation
5.1      Findings
5.2       Conclusion
5.3       Recommendation
         Bibliography
     Appendence
   CHAPTER ONE
 Government established bank money for development purposes and the vole of banking industry in an economic development cannot be over emphasized. Government owns some banks, for example, first Bank of Nigerian and so on. Both banks. However, banks in Nigerian and other countries of the worlds are established to carry out the following functions;
1           Government of loans to customers
2           Safeguarding of customers   money and some valuable assets such as certificates and so on.
3           Management of customers’ investment and advising on insurance matters.
4           Providing facilities for the financing of international trade, example documentary credit.
5           Creating money by the central bank of that country.
6           Mobilization of saving and other deposit.
7           Providing advisory services.
8           Providing foreign exchange facilities for traders.
9           Night safe facilities to customers.
10       Agency services to customers who authorized their banks to pay and collect cheques on their behalf.
However, the above function and duties of banks is just to mention but a
few because banking industry is dynamic in nature. It varies on public confidence and due to the influence on the nations economic life, it needs high quality management and organizational structure with which it can attain maximum operating efficiency and profitability .
            Since the advert of structural adjustment programme [SAP] and its deregulation –policies , banking industry in Nigeria has been receiving a number of policy shocks and the new banks felt it most . Such policy or guideline include :- The central bank of Nigeria  guidelines on reserve requirement and limited capital base for establishment of new banks.
    Other direction are the withdrawal of government banks . The payment of interest on current account cancellation of foreign denominated loans . The liberalization of foreign exchange market and the introduction of the controversial national deposit insurance corporation .
  STATEMENT OF THHE PROBLEM
The major problems facing new banks in Nigeria has its origin from central bank [CBN] guideline or directive. These directives  of two types; -
A] Directive on the establishment of new banks.
B] Measures introduced to reduce liquidity in the economy.
These measures which the government pursue in this regard lies with the withdrawal of deposits of Parastatals and other government agencies from financial intermediaries
  Other includes the cancellation of foreign exchange markets.
These measure are enforced at the same period and at a time when liquidity ratio have already one high. These affected the new rules rustically because of their climate capital base. Secondly, the economic restructure programme gave rise to the devaluation of the naira as it sought for the actual value of naira in the international market. Such devaluation consequently led to high cost of materials and fixed asset, which affect the development of new banks.
1.1                 OBJECTIVES OF THE STUDY
This work aims of investigating into the problems of new banks in Nigeria with a view to as certainly how for  the new banks have been faring as regard these problems and to recommended appropriate remedies that will minimize the problems. This study is also an attempt to suggest ways in which these problems can be avoided in the future taking into consideration the adage that suggest a prevention better than cure’’
1.2                 SIGNIFICANCE OF THE STUDY
This study will be of great importance to the government who usually comes out with policies that affect the banks and the entire economy. It will help us to understand the effect of such policies whether they are negative or positive to the Nigeria economy and also will act as guideline for policies market on how best to market on how best to make such policy and encounter policies.
This work will also be of immeasurable worth to the banks, as it will show then how far they have coping apart from suggesting possible solutions to these problems facing them. Movement it will been useful to individual may wish to go into banking business in knowing before land that the do not make profit from a platter of gold. They face problems like any other industry.
     Finally , this reseach work will serve as an additionally to the existing literature in the area of banking, finance and policy programme to enhance economic development of the country and the world at large beside serving as effluence for further researchers on the field.
1.3                                           STATEMENT OF HYPOTHESIS
In other to employ a scientific approach to the realization of the objectives of this reseach work the following hypothesis were analyzed.
Ho: the central bank policies are favorable to new banks
Hi: the central banks policies are unfavorable to new banks
1.4                                           SCOPE OF THE STUDY
This research work concentrate on problems of the new banks in Nigeria. It will also serve as an addition to the existing literature in the area of banking, finance and policies programme to enhance economic development of the country and the world at large.
1.5                 DEFINITION OF TERMS:
1 CBN: The central bank of Nigeria stands as the apex of the banking system in the economy. They are the representatives of the government in the banking sector and mainly acts as banker to the government. They also advice the government on monetary policy and implementation the policy on behalf of the government
2NDK: national deposits insurance corporation. This is a co-operate that was establishment by the federal government in Nigeria requiring all the banks to insure each deposit account up to fifty thousand naira. It was established to protect depositors fund against bank failures.
3            MONETARY POLICY: Is policies that deal with the discretion and control of monetary authorities in other to achieve stated on desired economic goals.
CORPORATE STRATEGY: The general nature of a firm’s relationship with its environment especially its customers and competitors.
   A firms corporate strategy may be described in terms of product it offer the market sharp market of growth and the way in which it’s since resources are allocated to its various activities.