Table of Contents
ABSTRACT.. 2
CHAPTER ONE.. 5
INTRODUCTION.. 5
1.1 Background to the Study. 5
1.2 Statement of the Problem... 6
1.3 Objectives of the Study. 7
1.4 Research Questions. 8
1.5 Research Hypothesis. 8
1.6 Significance of the Study. 8
1.7 Scope of the Study. 9
1.8 Limitations of the Study. 9
1.9 Organization of the Study. 10
CHAPTER TWO.. 12
REVIEW OF RELATED LITERATURE.. 12
2.1 Introduction.. 12
2.2 Theoretical Review.. 12
2.3 Conceptual Review.. 14
2.3.1 Overview.. 14
2.4 Empirical Review.. 18
2.5 Summary of Literature Review.. 20
CHAPTER THREE.. 21
RESEARCH METHODOLOGY.. 21
3.0 AREA AND POPULATION OF THE STUDY.. 21
3.1 RESEARCH DESIGN.. 21
3.2 DATA COLLECTION.. 22
3.3 SAMPLING TECHNIQUE.. 22
3.4 DATA ANALYSIS.. 23
3.5 ETHICAL CONSIDERATIONS.. 23
3.6 VALIDITY OF THE STUDY.. 24
3.7 RELIABILITY OF THE STUDY.. 24
CHAPTER FOUR.. 26
DATA ANALYSIS AND INTERPRETATION.. 26
4.1 Preamble. 26
4.2 Socio-Demographic Characteristics of Respondents. 26
TABLES BASED ON RESEARCH QUESTIONS.. 29
4.3 Analysis of the Respondents’ Views on Research Question one:. 29
4.4 Testing Hypothesis. 45
CHAPTER FIVE.. 50
SUMMARY CONCLUSION AND RECOMMENDATIONS.. 50
5.1 SUMMARY.. 50
5.2 CONCLUSION.. 52
5.3 RECOMMENDATION.. 52
REFERENCES.. 53
Appendix. 56
Questionnaire. 56
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
1.1 Background to the Study
The impact of globalization on the banking and financial system in Nigeria has been profound and multifaceted, transforming the country's financial landscape in significant ways. Globalization, characterized by the increasing interconnectedness of economies and the free flow of capital across borders, has not only expanded opportunities for Nigerian banks but has also exposed them to new challenges and vulnerabilities. This introduction aims to explore how globalization has shaped the banking and financial sector in Nigeria, examining both positive and negative implications. Ogunleye, E. (2018).
One notable effect of globalization on Nigeria's banking sector is the increased access to international financial markets. Nigerian banks have leveraged this access to attract foreign capital, diversify their portfolios, and engage in cross-border transactions. However, this integration has also heightened the susceptibility of the financial system to global economic fluctuations, as evidenced by the impact of the 2008 financial crisis. Additionally, the influx of foreign banks and financial institutions into Nigeria has intensified competition, compelling local banks to enhance their efficiency and adopt global best practices. Akinleye, G., & Olomola, O. S. (2017).
Furthermore, globalization has facilitated the adoption of advanced financial technologies (fintech) in Nigeria, promoting innovation and improving financial services. The emergence of mobile banking, online payment systems, and blockchain technologies has enhanced financial inclusion and provided new avenues for customers to access and manage their finances. Nevertheless, these advancements come with challenges such as cybersecurity threats and regulatory complexities, necessitating a balance between innovation and risk management. Adekunle, A. A., & Akinnubi, R. T. (2020).
1.2 Statement of the Problem
The impact of globalization on the banking and financial system in Nigeria presents a multifaceted set of challenges and opportunities that necessitate a comprehensive examination. One key problem lies in the increased vulnerability of the Nigerian financial system to external economic shocks. As globalization facilitates the free flow of capital across borders, the interconnectedness of the global economy exposes Nigerian banks to risks associated with international financial market fluctuations, potentially leading to systemic instability. The 2008 financial crisis serves as a poignant example, underscoring the importance of understanding how globalization-induced dynamics can influence the resilience of the Nigerian financial sector. Ogunleye, E. (2018).
Another critical issue arises from the heightened competition spurred by the influx of foreign banks and financial institutions into Nigeria. While this competition has the potential to drive local banks to enhance their efficiency and adopt global best practices, it also poses challenges related to market concentration and regulatory oversight. Striking the right balance between encouraging healthy competition and ensuring the stability of the domestic financial system is crucial for policymakers and regulators. Additionally, this competition may impact smaller, domestic financial institutions, potentially leading to disparities in access to resources and capabilities, further complicating the landscape of the Nigerian banking sector. Akinleye, G., & Olomola, O. S. (2017).
1.3 Objectives of the Study
The main objective of the study is to examine the impact of globalization on the banking and financial system in Nigeria. Specific objectives of the study are:
- 1. Assess the overall impact of globalization on the Nigerian banking and financial system's structure, efficiency, and stability.
- 2. Analyze the specific effects of key financial globalization aspects on the Nigerian banking and financial system.
- Identify the challenges and opportunities presented by globalization for the Nigerian banking and financial system.
1.4 Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- 1. To what extent has globalization increased competition and efficiency within the Nigerian banking and financial system?
- 2. How has the inflow of foreign capital and international financial instruments driven by globalization impacted the development and diversification of financial products and services offered by Nigerian banks?
- What are the key vulnerabilities and potential systemic risks arising from the integration of the Nigerian banking and financial system into the globalized financial markets? How can these be mitigated?
1.5 Research Hypothesis
The following research hypothesis was developed and tested for the study:
Ho: There is no statistical significant relationship between globalization on the banking and financial system in Nigeria.
1.6 Significance of the Study
The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:
Firstly, the paper will benefit major stakeholders and policy makers in the Banking sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.
Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.
Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.
1.7 Scope of the Study
The study is delimited to GTCO Lagos. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.
1.8 Limitations of the Study
The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.
1.9 Organization of the Study
The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.
Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.
Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.
Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.
Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.
