– institutions through mergers and acquisition; –– institutions through mergers and acquisition; –

–       To
increase the minimum paid-up capital of banks (which is known to have been
unimpaired by loan losses) from 2 billion naira to 25 billion naira with a full
compliance deadline of 31st December 2005;

–       To
establish phased withdrawal of public sector funds from banks, starting in July

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

–       Consolidation
of banking institutions through mergers and acquisition;

–       The
adoption of a risk-focus and rule-based regulatory framework;

–       The
adoption of zero-tolerance for non-compliance especially in the area of
data/information rendition and reporting;

–       The
Automation of the process for the rendition of returns by banks and other
financial institutions through an enhanced electronic financial analysis and
surveillance system (e-FASS);

–       The
establishment of a hot line, confidential internet address
(Governorcenbank.org) for all those wishing to share any confidential
information with the Governor of Central Bank on the operations of banks or the
financial system;

–       To
ensure the strict enforcement on the contingency planning framework for
systemic bank distress;

–       To
establish Assets Management Company as an important element of distress

–       The
promotion of the enforcement of dormant laws, especially those relating to the
issuance of dud cheques and the laws relating to the vicarious liability of the
Boards of Directors of banks in cases of bank failure;

–       The
revision and updating of relevant laws, and drafting of new ones relating to
effective operations of the banking system;

–       To
ensure closer collaboration with the Economic and Financial Crimes
Commission(EFCC) in the establishment of Financial Intelligence Unit (FIU) and
the enforcement of the anti-money laundering and other economic crime measures;

–       The
rehabilitation and effective management of the Nigerian Security Printing and
Minting Company (NSPMC) PLC, to meet the security printing needs of Nigeria,
including the banking system which constitutes over 90 percent of the NSPMC’s

2.8       Summary of Literature Review


the review of literature, there are banking failures in the Nigerian banking
system and these could be mitigated. Also, these banking failures have been known
to influence the profitability, growth and sustainability of banks in
Nigeria.  In addition, literature have
shown the several problems militating against profitability, growth and
sustainability of banks in Nigeria. These factors are divided into two:
external and internal. In addition, there are several strategies that have been
deployed to enhance the profitability, growth and sustainability of banks in
Nigeria, and of major importance to the Nigerian banking system are bank
consolidation, reforms, and sustainable banking, among others.

was also discovered that most of these strategies deployed in the Nigerian
banking system to enhance the profitability, growth and sustainability of banks
in Nigeria are restricted to come from the governments, policy makers, and also
from the Central Banks of Nigeria. Thus, studies that have been done with
respect to the banks, their managers and owners are infinitesimal and thus the
need to inculcate such into literature. To this end, there is need for
empirical evidence to capture a holistic view of the various threats to
profitability, growth and sustainability of banks in Nigeria and also investigate
the problems and prospects thus, the need for this study.