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.
Modelling of the Effect of Critical Seepage Force on the Aquifer Soil Medium of a Borehole (Published)
There have been records of failures and quicksand conditions in boreholes in recent times impeding the performance and operation of boreholes which may have resulted from various factors ranging from construction problems, drilling inaccuracies, fitting and installation problems, some chemical effects within the aquifer medium etc, but it has been ignored that the beneficial factor to the operation of water boreholes; seepage force could get to a considerable value that it becomes unsafe for the well operation thereby causing dislodgement of sand particles and sandstones from the wall of the borehole and the flow paths to the extent that sandstones experience boiling. The scouring of the particles collected at the wall of the transport pipe could damage the installations which is a huge financial loss to the owners of these facilities. Moreover, when soil particles flow, it makes the yield a poor one hence this research works to investigate the contribution of seepage force to the failure of boreholes. A mathematical/laboratory model was used and an expression for calculating the critical hydraulic head causing critical seepage deduced as =. Tables 2 and 3 and Figures 4, 5 and 6 have shown that there is strong agreement between the mathematical model and the laboratory check with closest agreement at the flow distance of 1.8m flow distance and a correlation analysis has shown a perfect correlation of 1.00975. It was also established that the well pump of 760watts power could be operated safely at 220volts beyond which the hydraulic head get more critical. Finally, irrespective of the fact that an increase in hydraulic head increases discharge, the system should be operated at a head safe for the performance of the well.
An Early Warning System on the Propensity of Survival and Failure of Non-life Insurance Firms in the Philippines (2002-2011) (Review Completed - Accepted)
This study examines the factors affecting survival and failure of non-life insurance firms in the Philippines and classifies the survivability of the firms into strong, moderate, weak and insolvent firms. Selected insolvency indicators are represented by the variables most commonly found and validated in insurance literature. The study used a 10-year panel data of 79 non-life insurance firms in the Philippines from year 2002 to 2011 Annual Statements (AS) reported at the Philippine Insurance Commission (IC). The variables of the study were tested using Levene-Welch-Games-Howell and logit regression. The result shows that firm size, natural catastrophe due to typhoon and flood, ownership, leverage, degree of diversification, growth of equity and paid-up capital compliance are significant factors that affect the survivability of non-life insurance firms in the Philippines. The result of the study serves as a useful tool for the regulator and stakeholders involved in the industry