THE EFFECT OF GLOBALIZATION ON BANKING OPERATION IN NIGERIA ( A CASE STUDY OF FIRST BANK NIGERIA PLC)
Globalization can be defined as the process of shifting autonomous economic into the global market or the systemic integration of autonomous economies into global system of production and distribution.
This invariably involves an efficient and dynamic financial sector that is necessary for the facilitations of intermediation and exchange of goods and services.
For example, inefficient payment system has constituted a major issue, as it has negative implications on other aspects of the economy. The incidence of long queues for cheque encashment, under delays in clearing of cheque as well as other banking transaction increases cost of business transaction.
This is because as the economy develops an automated payment system backed by modern technologies, it is required to replace the manual one that can no longer cope with the changing technology. Similarly, inefficiency in capital market operations as evidence in high transaction cost and long time delivery of services are inimical to economic buoyancy. Algiers (2002)
Globalization is therefore, the decoupling of space and time through which instantiations communications, knowledge and culture can be shared around the world simultaneously.
Geographical distance becomes a factor of diminishing importance in the establishment and maintenance of cross-boarder economic, political and socio-cultural relations in a process. The left critics defined globalization as world wide drive towards a globalize economic system dominated by cooperate trade and banking institutions that are not accountable to democratic processes or national government globalization which has for centuries developed through integration, trade, knowledge spill-over and cultures, is now propelled by the spectacular expansion of banking operation.
Almost all the aspect of banking operation and values are affected by the operation all over the world, more than ever before, to differentiate an alternative view.
Immediate and concrete the impact of technological advancement in communication has just begun since the creation of global market place in countries.
2.1 HISTORY OF THE BANK
The bank was founded in 1894 by a shipping magnet from Liverpool by the name Sir Alfred Jones. The bank commenced as a small operation in the office of Elder Dempster and the Company in Lagos, the bank was incorporated as a limited liability company on March 31st 1894 with its head office in Liverpool England.
It started business under the corporate name of the Bank for British West Africa (BBWA) with a paid up capital of 12,000 pounds, sterling after absorbing its predecessor, the African Banking Corporation, which was established earlier in 1892.
This signaled the pre-eminent position that the bank was to establishing the banking industry in West Africa.
In the early years of operations of bank recorded an impressive growth and worked closely with the colonial government in performing the traditional function of Central Bank, such as issue of specie in West African sub-region. To justify its West African coverage a branch was established in Accra Gold Cost (now Ghana) in 1898.
These marked the genesis of the bank in international banking operation. The second branch of the Bank in Nigeria was in the old Calabar in 1900 and two years latter services were extended to northern Nigeria.