This study review the corporate finance
services as obtained in the Nigeria
banking business. The major corporate finance discussed ranges from the capital
market services, under which management of capital equity issue, marketing,
packaging, advisory services were discussed. Add to other corporate finance
services such as loan syndication, venture capital, merger and acquisition were
discussed. The global perspective was used to measure the extent of development
of such services and the performance of bank to determine its profitability in Nigeria
universal bank as a case study. At FBN plc the following corporate finance services
are seen to be in operation; project financing, capital market services,
advisory service. The rates of fees chargeable were not analyzed since we could
not get the transaction with corporate customers. Also the possibility of
enhancing income generation and capital base transaction to the corporate
customers. Finally, it is clear that a lot still need to be done in areas of
innovation and regulatory requirement before banks carefully reap the benefit
of corporate finance services.
TABLE OF CONTENT
Title page i
Table of content
CHAPTER ONE: INTRODUCTION
1.1 Background of the study 1
1.2 Statement of the problem 1
1.3 Objective of the study 2
1.4 Statement of research hypothesis 2
1.5 Justification of the study 2
1.6 Scope of the study 3
1.7 Limitation of study 3
1.8 Definition of terms 3
CHAPTER TWO: LITERATURE REVIEW AND
Review of related literature 4
Concept of bank’s profitability 7
Yardstick for measuring bank’\s performance 7
Corporate finance and functions 8
CHAPTER THREE: RESEARCH METHODOLOGY
An introduction to the chapter 10
Re-statement of research question and hypothesis 10
Research design 10
Description of the study population 10
Sampling design and procedure 11
Data collection instrument 11
Test of validity of instrument 11
Procedure for data analysis 11
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS
Brief discussion of study area 13
Discussion of respondent demographic characteristics 13
Presentation and analysis of data based on research
Presentation and analysis of data according to
Interpretation of findings 17
5.1 Summary 18
5.2 Conclusion 18
5.3 Recommendation based on conclusion 18
5.4 Suggestion for further research 27
With the deregulation of the economy
and the emergence of several government regulations, the traditional role of Universal
Bank as providing short term finance has undergone an economic metamorphosis
resulting in the granting of license by Nigeria Stock Exchange to universal bank
to participate to a greater extent or length in the capital market.
enhance banks to go into various capital project financing through their corporate
finance unit thereby erecting more profit or revenue generation.
TO THE PROBLEM
The deregulation and liberalization of the banking industry in 2004 has changed
the industry landscape in many aspect, prominent among the changes are: -
Decrease in the number of banks
Specialization in banking industry and non-bank financial
institution, discount house, finance house and micro finance.
Automation in banking industry, computerization and
Raising of minimum paid up capital to N25 billion for both
universal and Merchant banks.
The highlighted changes among other gave N25 billion paid-up capital for
a degree completion resulting in innovation and product development or service
development. A number of banks had been forced to patronize the capital market
to source for fund in form of capital. Thus, the current wave of development of
new service product become a reaction by bankers to the consciousness aroused
with respect to the treatment to be met out to customer as well as the need for
sound improvement on their liquidity position and capital base.
However, the new service products are directly aimed at mobilizing deposit
and revenue generated through fee based transactions which are mostly directed to
corporate customers. And with the target of providing a corporate finance
services to corporate body with capital project through their corporate finance
unit with the aim of generation more profit or income.
OF THE PROBLEM
In the statement of this research work, corporate finance takes on various
investment services to institutional and private investors such that these
adequate services does not reduce some abnormality that may hinder the much needed
profit in their operation which can be deduced from the understand:
That bank ensures the adequate collections of
collateral before loan are given out.
That bank does not operate within the aggregate limit in
their finance services in order to facilitate the achievement of government
social economic programme and profitability.
And that bank does not ensure correction measure or
action to be taken if the borrower does not repay in accordance with the agreement
OF THE STUDY
The examination of corporate finance service on Universal banking in Nigeria is pertinent
at this time of little or no bank failure couple with government concern for
stable and self reliance economy through high sustainable productive capacity,
since such service provides companies with the necessary finance is for dynamic
base to meet future challenges.
However, the aim of the study is to identify the corporate finance
services offered by Nigeria Universal Banks as compared with banks in developed
OF RESEARCH HYPOTHESIS
According to Kertiger, F. H Dictionary “An hypothesis is a guessed
statement of a relationship between two or more variables.
The above definition serves as a guide for the research test for hypothesis
Hi: That corporate finance management reduces
the level of fraudulent practice in bank and boost profitability.
Ho: That corporate finance management does not
reduce the level of fraudulent practices in banks and hinders their level of profitability.
Hi: There is significant correlation between the
corporate finance services in reducing the level of fraudulent act and profit generation.
Ho: There is no significant correlation
between the corporate finance services in reducing the level of fraudulent act
and profit generation restriction.
1.5 JUSTIFICATION OF THE STUDY
The research work is conducted mainly on corporate finance service as it relates
to institutional leaders and its impact on banks profitability with little emphasis
on universal banking. And to be a guide for academic excellent and to companies
who are unaware of such service facilities in banks.
OF THE STUDY
The project covered corporate finance services in universal bank but limited
to those in existence presently at First Bank of Nigeria Plc.
OF THE STUDY
The study like many other studies has a share of limitation as in every
human undertaken there are always constraints in achieving the set down goals
in which this project is not left out. Some of these constraints include the
a. Time Factor: - It would be
generally agreed upon that carrying out research work involves a lot of time,
which is not on one’s side. The available time to carry out this project is
b. The problems of data collection and its
accuracy: - It is well known fact that bank staffs are always busy during
and after business hour with customers and balancing of each day account. So as
a result of this questionnaire set out were not returned on time even many questions
were not answer or retuned. The reason behind this might be due to the amount of
secrecy as professional ethic of the job.
c. The problems of finance to augement the
effectiveness of the project.
d. Also, the book that were available in the
school library here are outdated, beside these is the lack of power supply (electricity)
in the school environment for more research online.
1.8 DEFINITION OF TERMS
Corporate Finance: - This is concerned
with making the provision and the use of a firm’s finance which involves the
allocation of scarce capital resources among competition opportunities
Corporate Finance Services: - This is
the services rendered to companies or business organization by provision them
with fund to run smoothly the business usually from a bank.
Profitability: - This is the ability of
the corporate finance operator to earn profit or gain to the extent that the principal
sum, interest and desire profit of an advance made is repaid.
Bank: - This is an institution or financial
intermediaries that offer various financial services to both individual and corporate
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