Tag Archives: Banking Industry

Corporate Management and Customer Satisfaction among Banking Industry in Rwanda (Published)

Corporate Management is all about making sure that decision are made effectively. This impetus towards corporate Management has been due to many factors. For instance, it matters for shareholders as it is a shield against abuse of directors while improving access to capital for the company itself and instilling financial stability in the market. The intent of the research was to assess the relationship between corporate Management and customer satisfaction. The research highlights the corporate Management practices in banks and how that affects customer satisfaction with the operations of Banks in Rwanda. There are a total of 12 banks in Rwanda. Out of the 12 banks, the researcher targeted the most commonly used banks in Rwanda. A total of 6 banks including National bank, Equity Bank, Bank of Kigali, I&M Bank, Banque Populaire(Atlas mara), Keanyan Commercial Bank(KCB). One branch of each of the six banks was chosen and included in the targeted branch population. The study specifically targeted branch managers of the different bank branches and customers in the different branches. Systematic sampling was used in identifying customers to include in the sample. The administered a structured questionnaires to 10 customers in each of the banks. The constituting of corporate boards is done through the involvement of all stakeholder or at least the key stakeholders. Moreover, academic standard are applied leading to the constitution of a qualified and gender sensitive board. However, there is a problem when it comes to sitting and waiting arrangements in the banks. The sitting arrangement and waiting arrangement in most banks in Rwanda is not conducive. The banks perform poorly on reliability because majority of the customers feel the banks do not provide their services in a timely manner. The customers have trust in the problem solving practices in banks. However, the customers believe the process takes long and employees in their banks did not prevent long waiting.

Keywords: Banking Industry, Corporate Management, Customer Satisfaction, Rwanda

The Failure of Lehman Brothers and Merril Lynch: A Lesson for the Nigerian Banking Industry (Published)

In recent times, the global instability that experienced in the financial system and banking sub-sector in particular was as a result of institutional failures. Consequently, banking experts in Nigeria said that, the failure of the two banks was an enough signal to the Nigeria banking industry. Therefore, the study examined the collapse of Lehman Brothers and Merril Lynch  as a rethink lesson for the Nigerian Banks. However, the study reveals that the two banks were absolutely limiting to the size and age in determining the future of their banks instead of depending on the efficiency and effective management of risky assets. Also the conventional lending procedures were not instituted rather they depend on subprime mortgage arrangement that did not have collateral securities. The declining home prices had made refinancing more difficult as a result of inadequate innovations in securitization. We therefore, recommend that the regulatory bodies should not be over confident on the conventional tools of banking supervision rather they employ more non-conventional methods of obtaining insider information. The current crops of bankers should closely be monitored to avoid manipulation as could be seen from the consolidation exercise. CBN should have full autonomy to run the finance market efficiently. Finally, government should also allow CBN to have the air of confidence in discharging its responsibilities.

Keywords: Banking Industry, Failure, Lehman Brothers, Lesson, Merril Lynch, Nigerian

The Relationship between Liquidation and Banking Industry Stability in Nigeria (Published)

The relationship between liquidation and banking industry stability has helped to sustain public confidence in the solvency of the bank. The purpose of this project work was to investigate the relationship between liquidation and banking industry stability in Nigeria. The study used quantitative time series data and special package for social sciences (SPSS) method during analysis. The result of the test indicates long run relationship between dependent and independent variables. The result of our analysis shows that there is long run relationship between the level of bank failure and stability of Nigerian banking industry. The study also found that efficient management of non-performing loan is necessary for the stability of Nigerian banking industry. The implication of this is that if the policy makers did not control the level of non-performing loan, it will continue to bring about bank failure. We therefore recommend that, there is an urgent need for effective monitoring of the level of bank failure in Nigeria to allow for acceleration of banking industry stability. This is necessary for its positive effect on the bank stability

Keywords: Bank Failure, Banking Industry, Liquidation, Non-performing Loan., Stability

The Influence of Forced Financial Reporting Disclosures On Behaviour Of Reporting Firms: Evidence From Nigeria (Published)

This paper examines the influence of forced financial reporting disclosures on the behavior of reporting firms in the Nigerian banking industry. Market size, asset base and profitability were used as the selection criterion. The sample size represents seventy percent of the population. Forced disclosure metrics used were capital adequacy and liquidity ratios while reporting behavior was measured using income smoothing and loan loss provisioning. A regressed forced disclosure metric was performed on variables of the behavior of the reporting firm. Results suggest correlation between forced disclosure and the behavior of reporting firms. No significant relationship existed between capital adequacy and liquidity ratio with income smoothing. Correlation between capital adequacy ratio and loan loss provisioning behavior was significant suggesting heavy reliance on loan loss provisioning to smooth income in order to meet regulatory requirements.

Keywords: Banking Industry, Capital Adequacy Ratio and Loan Loss Provisioning, Forced Disclosure, Income Smoothing, Liquidity Ratios