Jane Elliott Essay Example for Free

Jane Elliott Essay This was one of the most inspirational and educational documentaries that I have ever personally watched. A third grade teacher, Jane Elliott divides her class by blue and brown eyes to teach about discrimination and how it affects people in our society. People in society are taught many things in their lifetime, but when it is experienced first handedly they have a different perspective about it. When speaking with the class about Brotherhood week and what it meant I was shocked when Jane Elliott asked the class â€Å"If there was anyone that we did not treat like a brother† the classes first instant response was black people. There was no hesitation in answering this question. They even used the word â€Å"Nigger†. This is a prime example of how prominent discrimination was at that time, and it is just as prominent in our society today. African Americans currently score lower than European Americans on vocabulary, reading, and mathematics tests, as well as on tests that claim to measure scholastic aptitude and intelligence. This gap appears before children enter kindergarten, and it persists into adulthood. It has narrowed since 1970, but the typical American black still scores below 75 percent of American whites on most standardized tests. On some tests the typical American black scores below more than 85 percent of whites (Jencks, 1998). African Americans scoring lower on test could possibly be the results of discrimination. Jane Elliott proved this point in her documentary. On both days, children who were designated as inferior took on the look and behavior of genuinely inferior students, performing poorly on tests and other work. I feel that this experiment would be beneficial and should be performed in our school systems to help children experience discrimination, and the feelings of demoralization on a first Page 2 hand basis by using the same method Jane Elliott used by segregating children by eye color. I believe if this experiment was performed in schools today that there would be positive effects, such as improvements in student attitudes, elevated general testing scores, higher standardized test scores and less racial fighting between students. A Class Divided is a documentary that I feel everyone should view no matter what race or ethnicity a person might  be. Whether we realize it or not, everyone is prone to some form of discrimination and prejudice. The United States is such a diverse country, so most Americans are not part of the dominant group; therefore due to being a minority, we undergo a feeling of inferiority. This documentary presents us with a different view on the color of someones skin. After viewing this, a person will hopefully be less likely to focus on the differences they have with other people and see people all as equals. This topic was of great interest to me due to the fact that I witness discrimination many times a day. Even I, as a white American woman, who is married to someone of a different nationality, faces discrimination. This documentary will help those who do not face discrimination and prejudice in their everyday life, realize what it is like to be on the other end. I believe that racism, discrimination and prejudice are more explained through sociological theories. This does not make it acceptable, but it gives better understanding. Scapegoat theory, holds that prejudice springs from frustration among people who are themselves disadvantage (Dollard et al., 1939). The culture theory, some prejudice is found in everyone (Macionis, pg 281) This was proven by Bogardus (1925, 1967; Elsner, McFaul, 1977) with the social distance studies that found that people felt much more social distance from some categories than from others (Macionis, pg 279). The conflict theory, this theory relates Page 3 to today’s society. Shelby Steele (1990) explained that minorities themselves encourage race consciousness in order to win power and privileges. She also stated that this strategy may bring short-term gains, that such thinking often sparks backlash from whites or others who oppose special treatment on the basis of race or ethnicity. I believe that there is a lot of hostility and discrimination in society today between white and blacks due to the conflict theory.

Gender Identity In Friends Tv Show Film Studies Essay

Gender Identity In Friends Tv Show Film Studies Essay When we say that gender identity is socially constructed, what we do mean is that our identities are a fluid assemblage of the meanings and behaviours that we construct from the values, images and prescriptions we find in the world around us. Our gendered identities are both voluntary we choose who we are and coerced we are pressured, forced, sanctioned and often physically beaten into submission to some rules. We neither make up the rules as we go along, nor do we fit casually and without struggle into preassigned roles. (Carter and Steiner 2004) The influences that gender roles and our daily occupations have on our lives extend well beyond the workspace. In the popular television series, Friends, the show exhibits six main characters, consisting of three males and three females. During each episode, several portrayals of the intermingling of work and gender related issues arise. These issues interact with the personal and social lives of each of the main characters. Thus, each character finds that their careers define themselves, and that they are defined by their gender roles and their chosen job markets. Looking into how the role of each character affects their social relationship, one thing that I am interested in is that the successes, failures and experiences of their careers can also play upon the characters friendships. This essay aims to explore how each character attempts to represent their social class and their gender roles. Also, it will attempt to demonstrate whether their careers have a direct impact on their s ocial relationship. For this assignment, five episodes of Friends were chosen from the second season of the series, which aired September of 1995 into January of 1996. The answers to the three following questions were then sought from each episode. 1.) What careers do each of the characters have, and how do they attempt to represent themselves as employees of such? 2.) Do the careers have a direct impact on their personal identities, if so, how? 3.) Do the careers and gender roles of each character have an impact on their social relationship? 4.) Are there any other gender and work related issues portrayed? The following answers will come as a result of the inquired questions. Each of the male characters attempted to represent themselves with success in their career fields, although it may not have always happened. In their various fields of work, Joey and Ross feel the desire to depict profitable growth and flourishing careers. Joey, as an actor, spends time trying to coerce his way into various employment situations. In the episode, The One After the Super Bowl, he specifically wines and dines an assistant movie director in an attempt to obtain an acting role for a movie. In the end he succeeds, but prior to his victory he expresses distress about being outshined in show business by Ross pet monkey. In this context, I could consider about Joeys self identity. Giddens (1991) mentioned a persons identity is not to be found in behavior, nor important thought this is in the reactions of others, but in the capacity to keep a particular narrative going. Here Joey gives a good example that competition (with a monkey), whether real or imagined, impacts how one man feels he represents himself as successful or not in his chosen career. Joey felt surpassed in the acting business. While he performed as a television character, a monkey without acting skills had appeared in popular advertisements and a film. Understandably, Joey displays feelings of confusion and jealousy when an animal obtained more attention from Hollywood than himself. Joeys personal identity as a successful actor comes into question, which instigates him to pursue a role in a film as well. Joey succeeds, obtaining a supporting role. His self identity as a successful actor reappears when he feels that he has accomplished as much in the acting business as the monkey. On the other hand, the character Ross tries to represent himself as successful in his job by proving the scientific credibility of his research. In the episode, The One with Phoebes Husband, Phoebe reveals that she does not believe in the theory of evolution. Ross, as a palaeontologist, feels the inclination to convince her that evolution really exists. He spends considerable effort to explain to Phoebe the way humans have changed throughout time. When Phoebe finally persuades Ross to admit that other explanations seem plausible for humans existence besides evolution, Ross feels his incentive to work shattered. Overall, Ross represents himself as a realistic fact finder in his career, and makes attempts at success by researching and sharing the information he finds with others. Ross obviously feels his job success through the proven facts that he and his career endorse. When others question those very facts, he feels not only his career but also his personal identity challenged. Ross, unlike Joey, has no competition and does not need to achieve more to feel successful. Instead, his values, reasons, and passion for why he works in the field he has chosen come into question. Phoebe challenges Ross to examine his motives, and then determine whether he wishes to continue down his career path once he admits other explanations for human evolution could exist. Admitting to other possible theories of human life makes Ross wonder about the legitimacy and value if his own work. No conclusion to this dilemma appears in the episode, and viewers are left to wonder how Ross overcomes such a critical experience. An adequate example of Chandlers career did not appear in the chosen episodes for examination. However, each of the present examples given illustrate Mac an Ghaills observation on mens attitudes concerning their careers. Nothing is more important to a mans pride, self respect, status, and manhood than work. Nothing. Sexual impotence, like a sudden loss of ambulation or physical strength, may shatter his self -confidence. Butà ¢Ã¢â€š ¬Ã‚ ¦pride is built on work and achievement, and the successes that accrue from their work(Mac an Ghaill 2007). On a similar context, Gauntlett(2007) also describes about mans pride and self-esteem in society; both of them are based on confidence in the integrity and value of the narrative of self-identity. Joeys situation supports former statement by the revelation of his damaged pride and self identity when his acting career falls into the shadow of a monkeys stardom. Ross exemplifies latter statement as his confidence diminishes when he questions the validity and worth of his work. The women of the series do not seem to feel as much pressure to express their success in the career world, but do instead feel the gender limitations that their chosen careers impose on them. Monica, as a chef, finds herself without a job and struggling to obtain a new one. During the episode, The One with the List, she desperately takes on an assignment with a food company awaiting an FDA approval on its product mock-o-late, a substitute for chocolate. Her task with the food product concerns making thanksgiving recipes with mock-o-late as the main ingredient. After all her hard work with this horrible product, the FDA refuses to approve the chocolate substitute. Therefore, all of her effort goes wasted. However, she still receives a check from the food company. This encourages her to return to them for employment when they make another attempt with fish-stacios. Due to her desire to work, Monica describes herself in her career field as, having no morals and in need of money. Monica, unfortunately has an advanced level of training as a chef and yet reduces herself to take whatever job avails itself. One might wonder if the Jane Arthurs opinion, women face persistent discrimination based on their gender; they are paid less, promoted less, and assigned to specific jobs despite their qualifications and motivations(Arthurs 2004), rings true in this situation for the despairing culinary artist. Unlike Monica, Rachel, a waitress at the local coffee shop, remains content with her career. Surprisingly, she reflects no concrete representation of herself as the other characters do. The same situation arises with the character Phoebe, who has a career as a masseuse. Both of these women in the episodes chosen have very few, if any, attitudes that they reveal towards their chosen careers. Although their careers lack emphasis in the series, they still play vital roles in the characters personal identities and friendships as will later be shown. Moving onto the impacts that the careers have on their social relationships, the most prominent example of such appears in the episode, The One with the List. During this particular show, Ross tries to decide whether or not to break up with his current girlfriend in order to go out with Rachel. While trying to make his decision, Joey and Chandler convince Ross to create a list of pros and cons about each woman. Ross lists Rachel as only a waitress while his current girlfriend shares his career of palaeontology. Ross still breaks up with his girlfriend and seeks to start a relationship with Rachel. However, Rachel finds the list and discovers Ross thinks of her as only a waitress. The differences perceived between Rachels career and Ross career establishes the foundation of a rift in their friendship as well as their potential relationship. The Ross measured the difference between Rachels career and his girlfriends career by level of success. Labelling Rachel as only a waitress depicts Ross disdain for average jobs, yet Rachel does not feel inadequacy with her career until Ross brings it up. Rachel, Phoebe and Monica do not seem to measure themselves by their careers like the men in the series. Instead they view their careers mainly as a way to pay their bills. This gender difference shows that women tend to stress work less in relation to their sense personal identities. Careers to the women appear as more of a means of survival, while men view it more as a self defining role. Another issue that revealed itself concerning work and genders impact on relationships happened in the episode, The One with Phoebes Husband. In this particular viewing, fans find out that Phoebe has a supposedly gay husband from Canada. They were married so that Phoebes husband could obtain a green card and join the American Ice-escapades. However, to Phoebes disappointment, her husband turns out to be straight and presently wants a divorce. Previously, the characters career as an ice skater led him to think that he might be homosexual. He drew this conclusion before many years, as a young man, since all his friends and fellow skaters were gay. Feeling pressured to fit in, Phoebes husband presumed and tried to convince himself and everyone around him that he shared a homosexual orientation. This extreme view of gender roles in the work place obviously had huge and lasting impacts on the relationship Phoebe had with this man. Interestingly, this characters career dilemma did not focus on success or personal motivations to work, it revolved around wanting to fit into the crowd. As a skater this man was already talented, and obviously his passion for skating motivated him to continue. The gender identity that people labelled male skaters in his career field with, as well as the established gender of his fellow friends and co-workers, presented him with the problems he encountered. Finally though, he broke through the social labels to assert himself as a heterosexual. Consequently, an important point to note considers the fact that Rachel and Ross careers alone do not cause the problem in their friendship. Nor did Phoebes husbands career cause their resulting conflict. The dilemmas actually arose from the combination of perceptions they held about each others careers and also the feelings attached to them. Rachel finds herself defined by her career in the One with the List episode, and not in a favourable light. Interestingly, Ross too had found his own career criticized by a friend as was mentioned previously. When Phoebe cast Ross work into doubt by questioning evolution, Ross sense of self esteem fell. A parallel of low self esteem occurred in both characters (Rachael and Ross), when their careers value came into question. Careers do seem to have an important impact on friendships, but could it also be said, as in Phoebe and her husbands case that friendships have a rebounding affect on careers? Overall, the six main characters in the series Friends do visibly define themselves in relation to their careers, and that those very careers touch their friendships in significant ways. Upon viewing all five episodes there also appeared other work and gender related issues that will be shortly summarized for observations sake. First, most of the secondary characters that were depicted in positions of employment on the series were male. Two janitors, a lawyer, a movie producer, a company and a zoo manager all were men. The only two women who appeared employed aside from our main characters were a makeup artist and an animal trainer. This bias of more males than females in the working world being presented may have been due to the random selection of the episodes. However, the jobs shown in the viewed episodes do reflect that males hold more prestigious jobs. One could wonder if that bias comes from the writers or whether Kimmels observation gathered from Rhodes work, Speaking of Sex, Different occupations are seen as more appropriate for one gender of the other, and thus women and men are guided, pushed, or occasionally shoved into specific positions (Kimmel, 2004) again applies to the situation. (Words 2,349)

Analysis on the Bank Performance of Nigerian Banks

Analysis on the Bank Performance of Nigerian Banks The provisional title of this research project is: Consolidation and bank performance; analysis of Nigerian Banks 2004 to 2006. The choice of this topic emanates from the fact that the current credit crisis and the transatlantic mortgage financial turmoil have questioned the effectiveness of bank consolidation programme as a remedy for financial stability and monetary policy in correcting the defects in the financial sector for sustainable development. Many banks consolidation had taken place in Europe, America and Asia in the last two decades without any solutions in sight to bank failures and crisis. The paper attempts to examine the performances of government induced banks consolidation and macro-economic performance in Nigeria in pre-consolidation and post-consolidation period. The paper analyses published audited accounts of two (2) out of twenty-five (25) banks that emerged from the consolidation exercise and data from the Central Banks of Nigeria (CBN). We denote year 2004 as the pre-consolidation and 2005 and 2006 as post-consolidation periods for our analysis. In doing this, efforts would be made to examine empirically how bank consolidation through recapitalization has affected the performance of Nigerian banks during the period covered by the research. The data for the work are from secondary sources and would be obtained exclusively from the Central Bank of Nigeria and bank publications, both electronic and paper form. CAMEL analysis will be employed to analyse the financial data so as to ascertain the relationship between consolidation and bank performance. The CAMEL analysis is chosen because of its optimal properties, simple computational procedures and is suitable for an empirical work such as the present research project work. Against the findings that would emerge from the intended empirical investigation of this work, appropriate recommendations that are likely to better enhance the effectiveness of banking sector reforms in Nigeria thereby restoring confidence in the system. CHAPTER 1 1.1 Introduction The Nigerian banking sector over the past 20 to 25 years has experienced boom and bust in a cyclical pattern. After the implementation of the structural adjustment program (SAP) in 1986 and the deregulation of the financial sector, new banks proliferated, mainly driven by attractive arbitrage opportunities in the foreign exchange market (Heiko 2007). Prior to the deregulated period, financial intermediation never took off and even declined in 1980s and 1990s (Capirio and Kligbiel 2003). The sector was highly oligopolistic with remarkable features of market concentration and leadership. Lemo (2005) noted that there are ten Nigerian banks that control more than 50% of the aggregate assets of the banking sector; more than 51% of the aggregate deposit liabilities and more than 45% of the aggregate credits. The sector was characterized by small sized banks with high overheads; low capital base averaging less than $10million; heavy reliance on government patronage and loss making. Nigerias banking sector was still characterized by a high degree of fragmentation and low levels of financial intermediation up until 2004. In the light of the foregoing, banks are compelled by the Central Bank of Nigeria to raise their capital base from N2 billion to 25 billion on or before 31st December, 2005. Most banks resorted to mergers and acquisition as a survival strategy, which saw a reduction in the number of banks from 89 to 25. This study contributes to the concept of bank recapitalization by critically examining the impact of bank consolidation on the performance of banks using a sample of randomly selected Nigerian banks. It is the intention of the researcher to give more validity to empirical evidence that have been obtained by previous researchers on the subject matter. Relevance of the study The earliest set of studies evaluates the effects of bank consolidation through mergers and acquisitions comparing pre- and post- merger performance by measuring performance using either accounting or productive efficiency indicators.The results from both indicators have varied and at sometimes been contradictory. This can be explained by performance-influencing variables like size, brand name, diversification and cost reduction, there is still no reconciliation between these indicators. I intend to contribute to the determinants of bank performance by evaluating the possible performance impact of bank consolidation on banks. Consolidation is the key to improving the performance of banks with low capital base, without which they are bound to fail. 1.3 Background of study Aside being the highest contributor to the market capitalization of the Nigerian stock exchange and smooth and stable income provision to money and capital market, banking industry is capable of attracting potential investor which is a source of every economic development. Financial institutions generally, and banking sector in particular play a crucial role in the development process of mobilizing fund from the surplus sector of the economy to the deficit sectors of the economy. Banks help in increasing the quantum of national savings and investment. Consequently, the volume of goods and services produced in the economy increases overtime through the multiplier effect. Banks enhance stable and smooth income to attract potential investors in line with Modigliani and Miller (1958) theory that investors generally have preference for smooth and stable income. According to sloan and Arlond (1970) consolidation is a fusion of the assets and liabilities, in whole or in part of two or more business establishment. Consolidation represents the idea of investment and the coming together of firms; it can also mean larger sizes, larger shareholder bases and larger number of depositors. According to Adamu (2005) bank or corporate consolidation could be achieved by way of mergers/acquisition and recapitalization. It is more than mere shrinking of number of banks in any banking industry. According to Hall (1999) consolidation is a global phenomenon, which started in the advanced economies of the world. For example, the enactment of Riegle-Neal Act, which allows interstate branch banking beginning from 1997 this led to increase in bank mergers in the USA (Akhavin et al and kwan 2004). Consolidation allow a mega bank to enjoy higher profit, increase revenue and low problem loans. Japanese banking industry also experienced consolidation in the 1990s which resulted to economies of scale (Fukuyama, 1993; Mckillop et al 1996). When banks go bust, their capital base is called to question. Cases of bank failures have motivated researchers to investigate the activities of banks in relation to performance in terms of returns. A view is that consolidation has increased the capital base and size of Nigerian banks but does not necessarily bring about higher performance. Criteria Selecting Nigeria Study Consolidation is a term used by the central bank of Nigeria (CBN) to describe the coming together of some banks within the country to become one bank and be able to meet CBNs requirement for capitalization to a minimum of N25billion. When this happens, it is expected to improve services rendered by the banks. In July 6, 2004, a day now referred to as black Tuesday in banking sector of the economy, the CBN Governor, professor Charles Soludo made an obviously unexpected policy pronouncement. The highlight was the increment of the earlier N2billion to N25 billion, with full compliance deadline fixed for the end of the year 2005. In a bid for banks to meet up with the new requirement, some Banks are exploring the option of inviting foreign investors to buy into Banks. Others are looking at the possibility of getting investors to shore up their capital, and some are looking at the capital market option, while others are considering mergers and acquisition. If the process of consolidation is properly implemented the ongoing consolidation of banks in the country will surely improve the banking sector in Nigeria and translate to better banking services and cheap funds.   More importantly, the public will not have fear of distress in any bank, since the consolidated bank will have enough funds. The need to understand the impact of bank consolidation on Nigerian banks either negative or positive necessitated the use of Nigerian banks as sample for this study. 1.5 Aim To analyze the effect of consolidation on the performance of Nigerian Banks 1.6 Objectives To examine the consolidation process of Nigerian banks. To Asses the performance of Nigerian banks before and after consolidation. To evaluate the impact of consolidation on Nigerian banks. CHAPTER 2: Literature Review 2.1 Introduction This chapter attempts to gain an in-depth view into what is already known in connection with the research topic being studied. It therefore brings to light the different theoretical and methodological approach to the research area, helps develop a practical analytical framework, considers inclusion of variables that may not have been thought about from the inception of the research work and in the long run learning can be gained from mistakes of previous researchers and avoidance of such mistakes would be achieved (Bryman Bell, 2003). The scope of the research is narrowed down through successful study of literature review that was continuous all through the research process. Further, the review of literature will incorporate a wide range of materials sourced from journal articles, corporate websites, government websites, multilateral organisations, text books and online databases which include: Wiley, Science Direct, Emerald and Business Source Premier. Reforms are predicated upon the need for reorientation and repositioning of an existing status quo in order to attain an effective and efficient state. There could be fundamental bottle-neck that may inhibit the functioning of the institutions for growth and the achievement of core objectives in the drive towards enhancing and sustaining the economic and social imperatives of human endeavor. Carried out through either government institutions or private enterprises, reform becomes inevitable in the light of the global dynamic exigencies and emerging landscape. Consequently, the banking sector, as an important sector in the financial landscape, needs to be reformed in order to enhance its competitiveness and capacity to play a fundamental role of financing investment. Many literature indicates that banking sector reforms are propelled by the need to deepen the financial sector and reposition for growth, to become integrated into the global financial architecture; and involve a banking sector that is consulting with regional integration requirements and international best practices. The nexus between consolidation and financial sector stability and growth is explained by two polar views. Proponents of consolidation opined that increase size could potentially increase bank returns, through revenue and cost efficiency gains. It may also, reduce industry risks through the eliminations of weak banks and create better diversification opportunities. On the other hand, it is argued that consolidation could increase banks propensity towards risk taking through increases in leverage and off-balance sheet operations. Advocates Furlong (1994) stated that an early view of consolidation in banking was that it makes banking more cost efficient because larger banks can eliminate excess capacity in areas like data processing, marketing, or overlapping branch networks. Cost efficiency also could increase if more efficient banks acquired less efficient ones. Though studies on efficiency in banking raised doubts about the extent of overcapacity, they did point to considerable potential for improvement in cost efficiency through mergers. Banking reforms involves several elements that are unique to each country based on historical economic and institutional imperatives, for example, in Hungary. Evidence show that the reform in the banking sector was due to high under-capitalization of state owned banks, weakness in the regulation and supervision and deficiencies in corporate governance behavior of banks. Craig and Hardee (2004) conducted investigation on bank consolidation and concluded that as the banking consolidation continues, relationship lending is becoming increasingly rare. As credit scoring and formal, formulaic methods are used more and more, specifically by the large banks, many small businesses may find out that they do not fit the model, especially those enterprises with negative equity. Thus, small businesses may be filling the financing void that is being created by the bank consolidation with non-bank sources of funds. Hughes and Mester (1997) provide evidence to suggest that there are scale economics in banking, bank managers are risk averse, and banks use the level of their financial capital to signal the level of risk. This is an area of interest in Nigerian banking, especially when the return on equity is calculated in another two to three years and then compared with the historical industry average. Rhoades(1996) reported that American banks consolidated in response to the removal of restriction on bank branching across states, while Hughes, J.P; W. Lang; L.J. Mester; C.G. Moon(1998) concluded that the economic benefits of consolidation are strongest for those banks that engaged in interested expansion, and in particular the expansion that diversifies macroeconomic risk. From the literature, it has been observed that well-spaced and implemented financial reforms have the ability to boost financial development indicators. Detractors Hughes J.P; Mester, L.J; and Moon, C.G (2000) also provide evidence that scale economies exist in banking but they fail to account for risk. Thus, scale economies that result from consolidation and diversification do not produce better performance in banking, unless choice makes the banks management more conscious risk and moderates its decisions and actions appropriate larger scale of operation that leads to diversification only reduce liquidity and credit risk under the ceteris bus assumption, and they argued that this is not always the case. The examination of merger and acquisition in European banking and found that industry consolidation was beneficial (by providing social benefits) in the first economic integration stages, but could damage welfare in the more advanced stages as the few big banks safeguard price agreements to forestall foreign competition. The other side to European mergers and acquisitions was because of the possibility of failure. This, of course, ignores the fact that no bank can ever be too big to fail. All it takes for a bank to fail is for bad news? about a bank to get to its stakeholders (especially depositors) and they all walk in at the same time to take their funds! For such bank to survive, it must have sufficient liquid assets to meet all maturing and long-dated obligations (Igangiya, 2006). 2.2 Role of banks In the Economy Banks have an important role to play in an economy, as they are intermediaries between people with shortages and surpluses of capital. The products they offer will include savings, lending, investment, mediation and advice, payments, ownership, guarantee and, trust of real estate. (Bouma et al, 2001). This aspect is critical to this research study as the role of banks in any economy cannot be undermined therefore, the need to explore the effectiveness of their actions and how this ultimately affects the economy. The macroeconomic environment within which firms exist and, operate has an impact upon their activities and governments and other agencies operating at different spatial levels and it can shape behavior and their environment. (Worthington et al, 2001). According to Bouma et al, (2001), as a financial intermediary between market players, a bank has four important functions: First it transforms money by scale. The money surpluses of one person are mostly not the same as the shortages of another person. Banks transform money by duration. Creditors may have short-term surpluses of money, while debtors mostly have a long-term need for money. Banks transform money by spatial location (place). Finally, banks act as assessors of risk. As a rule, banks are better equipped to value the risks of various investments than individual investors who have surpluses available. Also, through their larger scale, banks are more able to spread risks. The major objectives of the banking system are to ensure price stability and facilitate rapid economic development; regrettably, these objectives are still yet to be realised in Nigeria as a result of some infrastructural deficiencies such as basic power, energy, and transportation. Also, the lack of a workable contingency planning framework which provides detailed policy actions to limit crises. The reforms of the banking industry will have an influence on the functions, as it ultimately shapes the way they handle their operations. The reform of recapitalisation and consolidation could mean a larger platform for banks to better carry out their tasks. This literature review takes a look at commercial banks in Nigeria when faced with the reformation of the banking industry, core competences needed by the banks to be successful and the effect on the macroeconomic indicators of the country. 2.3 The concept of capital base The recent call for recapitalization in the banking industry has raised much argument among the bank regulators, promoters and depositors as if shoring up of banks capital base is a new phenomenon in Nigeria. Historically, the failure of pioneer 1930s and 1940s brought about the enactment of banking ordinance of 1952. Banking ordinance of 1952 prescribed an operating license and emphasized on minimum equity capital for all banks (Omoh, 2007). Since then, raising of bank capital has become the hallmark response policy of the Nigerian monetary authorities. Capitalization is an important component of reforms in the banking industry, owing to the fact that a bank with a strong capital base has the ability to absorb losses arising from non-performing liabilities (NPL). Attaining capitalization requirement is achieved through consolidation, convergence as well as the capital market. Thus, banking reforms are primarily driven by the need to achieve the objectives of consolidation, competition and convergence. (Deccan Herald,2004), in the financial architecture. 2.4 The Concept of Bank Consolidation Consolidation is viewed as the reduction in the number of banks and other deposit taking institution with a simultaneous increase in the size and concentration of the consolidation entities in the sector (BIS, 2001:2). It is mostly motivated by technology innovation, deregulation of financial services, enhancing intermediation and increased emphasis on shareholder value, privatization and international competition (Berger et al, 1991). The process of consolidation has been argued to enhance bank efficiency through cost reduction and revenue in the long run. It also reduces industrys risk by eliminating weaker banks and acquiring the smaller ones by bigger and stronger banks as well as creates opportunities for greater diversification and financial intermediation. The pattern of banking system consolidation could be viewed in two different perspectives, namely; market-driven and government-led consolidation. The market-driven consolidation which is more pronounced in the developed countries sees consolidation as a way of broadening competitiveness with added comparative advantage in the global context and eliminating excess capacity more efficiently than bankruptcy or other means of exit. On the other hand, government-led consolidation stems from the need to resolve problem of financial distress in order to avoid systematic crises as well as to restrict inefficient banks (Ajayi, 2005). One of the general effects of consolidation is to the reduction in the number of players, moving the industry more toward an oligopolistic market (Adedipe, 2007). 2.5 Prospect of Bank consolidation In Nigeria The initial public offering by banks through the capital market when completed is likely to increase the level of financial deepening as evidenced in the upsurge in the volume and value of trading in stock market. The reform in the banking industry has been able to attract more foreign investment inflow, especially in the area of portfolio investment; this development if sustained will boost the level of economic activity especially toward non oil sector. The consolidation of banks is likely to attract a significant level of foreign banks entrance into Nigeria which will become a feature in the industry over time. This will bring about more confidence by the international community of the banking sector thereby attracting more foreign investment into the country. As the level of financial intermediation increase, interest rate is likely to fall and increase lending to the real sector that will generate employment and booster growth. 2.6 The Process of Bank consolidation In Nigeria Before any bank can be said to consolidate through merger and acquisition in the Nigeria industry, it must first seek and obtain the approval of the following regulatory and supervisory authorities in the industry. They include the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), Nigeria Stock Exchange (NSE) and the Corporate Affairs Commission (CAC) (CBN, 2004). Chapter 3: Research Methodology Introduction This chapter sets out the method employed in conducting the research. The choice of method was made based on the nature of the research problem. The purpose of this research is to discover, if any, the impact of bank consolidation on bank performance. Effort would be made to ensure that the methodology and conceptual framework adopted in the research are as relevant to the findings as the concepts and theories of the study. This is because the validity and reliability of conclusions are largely influenced by the research process itself. 3.2 Research Design This study is a causal or explanatory analysis since it seeks answers to questions related to the causes and determinants of bank performance. The research adopts a deductive approach. It outlines theories of director relationship to firm performance and draws hypothesis from them. These hypotheses are then tested using empirical social data to either confirm or reject the contentions. 3.3 Quantitative Versus Qualitative Data A clear distinction must be emphasized between quantitative and qualitative data. The former is concerned with the compilation of the results of research in a standardised mathematical form with the analysis conducted by means of statistics. (Saunders et al, 2003, p.378). Here variables are measured on a selection of scales and can then be arranged in order of arithmetical rigour. Conversely qualitative research is subjective in its approach of examining and reflecting on perceptions of understanding social and human activities (Hussey and Hussey, 1997). Qualitative research is inductive and researchers rarely know the specifics of data analysis when they begin a project (Neuman, 2006). It is concerned with the assemblage of data in a non-standardised, descriptive form, with the examination conducted through the use of theoretical models. 3.4 Data Type Raw or summarized data which has already been collected and stored for other purposes aside from that of the research in question is referred to as secondary data (Saunders et al, 2007). This research will make use of multiple-source secondary data collected from bank financial reports and CBN statistical publications available on the CBN, Guaranty trust and zenith banks websites, some paper source of data will also be used. The data/study will be restricted between the period of 2004 and 2006. The year 2004 is the pre-consolidation, 2005 consolidation while 2006 is the post-consolidation periods. The choice of data type is based on accessibility, cost saving and authenticity factors. Sample Selection The representative sample of the Nigerian banking sector to be used as a sample of the population under study is Guaranty Trust Bank PLC and Zenith Bank PLC. CAMEL ANALYSIS CAMEL is derived from the five components of a banks condition which include Capital adequacy, Asset quality, Management, Earnings, and Liquidity. Ratings are assigned for each component, and a composite rating is assigned for the overall condition and performance of the bank. These component and composite ratings are assigned on a scale of 1 to 5, with 1 representing the highest rating (strongest performance) and 5 representing the lowest (weakest performance) (Hirtle and Lopez, 1999). The camel analysis will be used to analyse the performance of banks during the pre-consolidation (2004) and the post-consolidation (2006) periods. Limitation The major difficulty that is likely to be encountered during the course of carrying out this research is the dearth of information, which is usually associated with emerging economies (including the Nigerian economy). Deliberate efforts would therefore be made to obtain information necessary to enhance the quality of the present research. 4.0 CONCLUSION In summary, the research tries to establish that bank consolidation helps in shoring up investment capital, enhances shareholder value, and protects creditors and depositors as well as strengthening banks capacities to attract funds at lower costs enhancing their liquidity positions. An efficient banking system tends to be one of the greatest focuses of the Central Bank of Nigeria since its establishment in 1959. Thus, sufficient capital base has largely constituted the Banks reform policy focus over the years. Hence, it may not be out of place to conclude at this material time that the ongoing reform policy is essential for the attainment of overall macroeconomic stability on a sustainable basis. Accordingly, the Central Bank of Nigeria is admonished to intensify its present efforts geared towards restoration of confidence in the banking system. The research work analyses published audited accounts of two (2) out of twenty-five (25) banks that emerged from the consolidation exercise and data from the Central Banks of Nigeria (CBN). We denote year 2004 as the pre-consolidation and 2005 and 2006 as post-consolidation periods for our analysis. In doing this, efforts would be made to examine empirically how bank consolidation through recapitalization has affected the performance of Nigerian banks during the period covered by the research. The data for the work are from secondary sources and would be obtained exclusively from the Central Bank of Nigeria and bank publications, both electronic and paper form. CAMEL analysis will be employed to analyse the financial data so as to ascertain the relationship between consolidation and bank performance BIBLIOGRAPHY Bernerd, B.P., (2006), The effect of recent changes in the financial sector development in Nigerian, Paper presented at the 15th General Assembly of the African rural and agricultural credit association (AFRACA), Bukina Faso. CBN., (2004), Guidelines and Incentive on Consolidation in consolidating Banking Industry. Charles, C.S. (2004) Consolidating the Nigerian Banking Industry to Meet the Developmental challenges of the 21st century. Paper presented at a meeting of bankers committee Abuja 6 July 2004. Larry, U; et al., (2004) Issues in Financial Institutions Surveillance in Nigeria. A seminar paper by CBN training centre Lagos. Eshodaghor, D.V., (2006), Impact of distressed banks in depressed Economy, Prospects for survival and growth. Bank failure in Nigeria, causes and dimension pp. 17 â€Å" 22. Ezeudusi, F. U., (2002) Marcus, G., (2003), An approach to the consolidation of Banks Merger Issues by regulators., A south African case business paper (4), NDIC Annual Report and Statement of Account . Oviemuno, A.O., (2006) Banking Consolidation in Nigeria and the strategies for Generating better returns. Ogunleye G.A. (2003) The regulatory imperatives of the Universal Banking concept in Nigerian NDIC quarterly, (11) No. (2), pp.20-30 Ochojele, D. I., (2003) The Nigerian banking industry, a review seminar paper. Osaije, E., (1992), Structural adjustment programme in Nigerian economy Victor, Ezeaku., (2003), Consolidation of Nigerian Banking Sector, CBN publication. Analysis on the Bank Performance of Nigerian Banks Analysis on the Bank Performance of Nigerian Banks The provisional title of this research project is: Consolidation and bank performance; analysis of Nigerian Banks 2004 to 2006. The choice of this topic emanates from the fact that the current credit crisis and the transatlantic mortgage financial turmoil have questioned the effectiveness of bank consolidation programme as a remedy for financial stability and monetary policy in correcting the defects in the financial sector for sustainable development. Many banks consolidation had taken place in Europe, America and Asia in the last two decades without any solutions in sight to bank failures and crisis. The paper attempts to examine the performances of government induced banks consolidation and macro-economic performance in Nigeria in pre-consolidation and post-consolidation period. The paper analyses published audited accounts of two (2) out of twenty-five (25) banks that emerged from the consolidation exercise and data from the Central Banks of Nigeria (CBN). We denote year 2004 as the pre-consolidation and 2005 and 2006 as post-consolidation periods for our analysis. In doing this, efforts would be made to examine empirically how bank consolidation through recapitalization has affected the performance of Nigerian banks during the period covered by the research. The data for the work are from secondary sources and would be obtained exclusively from the Central Bank of Nigeria and bank publications, both electronic and paper form. CAMEL analysis will be employed to analyse the financial data so as to ascertain the relationship between consolidation and bank performance. The CAMEL analysis is chosen because of its optimal properties, simple computational procedures and is suitable for an empirical work such as the present research project work. Against the findings that would emerge from the intended empirical investigation of this work, appropriate recommendations that are likely to better enhance the effectiveness of banking sector reforms in Nigeria thereby restoring confidence in the system. CHAPTER 1 1.1 Introduction The Nigerian banking sector over the past 20 to 25 years has experienced boom and bust in a cyclical pattern. After the implementation of the structural adjustment program (SAP) in 1986 and the deregulation of the financial sector, new banks proliferated, mainly driven by attractive arbitrage opportunities in the foreign exchange market (Heiko 2007). Prior to the deregulated period, financial intermediation never took off and even declined in 1980s and 1990s (Capirio and Kligbiel 2003). The sector was highly oligopolistic with remarkable features of market concentration and leadership. Lemo (2005) noted that there are ten Nigerian banks that control more than 50% of the aggregate assets of the banking sector; more than 51% of the aggregate deposit liabilities and more than 45% of the aggregate credits. The sector was characterized by small sized banks with high overheads; low capital base averaging less than $10million; heavy reliance on government patronage and loss making. Nigerias banking sector was still characterized by a high degree of fragmentation and low levels of financial intermediation up until 2004. In the light of the foregoing, banks are compelled by the Central Bank of Nigeria to raise their capital base from N2 billion to 25 billion on or before 31st December, 2005. Most banks resorted to mergers and acquisition as a survival strategy, which saw a reduction in the number of banks from 89 to 25. This study contributes to the concept of bank recapitalization by critically examining the impact of bank consolidation on the performance of banks using a sample of randomly selected Nigerian banks. It is the intention of the researcher to give more validity to empirical evidence that have been obtained by previous researchers on the subject matter. Relevance of the study The earliest set of studies evaluates the effects of bank consolidation through mergers and acquisitions comparing pre- and post- merger performance by measuring performance using either accounting or productive efficiency indicators.The results from both indicators have varied and at sometimes been contradictory. This can be explained by performance-influencing variables like size, brand name, diversification and cost reduction, there is still no reconciliation between these indicators. I intend to contribute to the determinants of bank performance by evaluating the possible performance impact of bank consolidation on banks. Consolidation is the key to improving the performance of banks with low capital base, without which they are bound to fail. 1.3 Background of study Aside being the highest contributor to the market capitalization of the Nigerian stock exchange and smooth and stable income provision to money and capital market, banking industry is capable of attracting potential investor which is a source of every economic development. Financial institutions generally, and banking sector in particular play a crucial role in the development process of mobilizing fund from the surplus sector of the economy to the deficit sectors of the economy. Banks help in increasing the quantum of national savings and investment. Consequently, the volume of goods and services produced in the economy increases overtime through the multiplier effect. Banks enhance stable and smooth income to attract potential investors in line with Modigliani and Miller (1958) theory that investors generally have preference for smooth and stable income. According to sloan and Arlond (1970) consolidation is a fusion of the assets and liabilities, in whole or in part of two or more business establishment. Consolidation represents the idea of investment and the coming together of firms; it can also mean larger sizes, larger shareholder bases and larger number of depositors. According to Adamu (2005) bank or corporate consolidation could be achieved by way of mergers/acquisition and recapitalization. It is more than mere shrinking of number of banks in any banking industry. According to Hall (1999) consolidation is a global phenomenon, which started in the advanced economies of the world. For example, the enactment of Riegle-Neal Act, which allows interstate branch banking beginning from 1997 this led to increase in bank mergers in the USA (Akhavin et al and kwan 2004). Consolidation allow a mega bank to enjoy higher profit, increase revenue and low problem loans. Japanese banking industry also experienced consolidation in the 1990s which resulted to economies of scale (Fukuyama, 1993; Mckillop et al 1996). When banks go bust, their capital base is called to question. Cases of bank failures have motivated researchers to investigate the activities of banks in relation to performance in terms of returns. A view is that consolidation has increased the capital base and size of Nigerian banks but does not necessarily bring about higher performance. Criteria Selecting Nigeria Study Consolidation is a term used by the central bank of Nigeria (CBN) to describe the coming together of some banks within the country to become one bank and be able to meet CBNs requirement for capitalization to a minimum of N25billion. When this happens, it is expected to improve services rendered by the banks. In July 6, 2004, a day now referred to as black Tuesday in banking sector of the economy, the CBN Governor, professor Charles Soludo made an obviously unexpected policy pronouncement. The highlight was the increment of the earlier N2billion to N25 billion, with full compliance deadline fixed for the end of the year 2005. In a bid for banks to meet up with the new requirement, some Banks are exploring the option of inviting foreign investors to buy into Banks. Others are looking at the possibility of getting investors to shore up their capital, and some are looking at the capital market option, while others are considering mergers and acquisition. If the process of consolidation is properly implemented the ongoing consolidation of banks in the country will surely improve the banking sector in Nigeria and translate to better banking services and cheap funds.   More importantly, the public will not have fear of distress in any bank, since the consolidated bank will have enough funds. The need to understand the impact of bank consolidation on Nigerian banks either negative or positive necessitated the use of Nigerian banks as sample for this study. 1.5 Aim To analyze the effect of consolidation on the performance of Nigerian Banks 1.6 Objectives To examine the consolidation process of Nigerian banks. To Asses the performance of Nigerian banks before and after consolidation. To evaluate the impact of consolidation on Nigerian banks. CHAPTER 2: Literature Review 2.1 Introduction This chapter attempts to gain an in-depth view into what is already known in connection with the research topic being studied. It therefore brings to light the different theoretical and methodological approach to the research area, helps develop a practical analytical framework, considers inclusion of variables that may not have been thought about from the inception of the research work and in the long run learning can be gained from mistakes of previous researchers and avoidance of such mistakes would be achieved (Bryman Bell, 2003). The scope of the research is narrowed down through successful study of literature review that was continuous all through the research process. Further, the review of literature will incorporate a wide range of materials sourced from journal articles, corporate websites, government websites, multilateral organisations, text books and online databases which include: Wiley, Science Direct, Emerald and Business Source Premier. Reforms are predicated upon the need for reorientation and repositioning of an existing status quo in order to attain an effective and efficient state. There could be fundamental bottle-neck that may inhibit the functioning of the institutions for growth and the achievement of core objectives in the drive towards enhancing and sustaining the economic and social imperatives of human endeavor. Carried out through either government institutions or private enterprises, reform becomes inevitable in the light of the global dynamic exigencies and emerging landscape. Consequently, the banking sector, as an important sector in the financial landscape, needs to be reformed in order to enhance its competitiveness and capacity to play a fundamental role of financing investment. Many literature indicates that banking sector reforms are propelled by the need to deepen the financial sector and reposition for growth, to become integrated into the global financial architecture; and involve a banking sector that is consulting with regional integration requirements and international best practices. The nexus between consolidation and financial sector stability and growth is explained by two polar views. Proponents of consolidation opined that increase size could potentially increase bank returns, through revenue and cost efficiency gains. It may also, reduce industry risks through the eliminations of weak banks and create better diversification opportunities. On the other hand, it is argued that consolidation could increase banks propensity towards risk taking through increases in leverage and off-balance sheet operations. Advocates Furlong (1994) stated that an early view of consolidation in banking was that it makes banking more cost efficient because larger banks can eliminate excess capacity in areas like data processing, marketing, or overlapping branch networks. Cost efficiency also could increase if more efficient banks acquired less efficient ones. Though studies on efficiency in banking raised doubts about the extent of overcapacity, they did point to considerable potential for improvement in cost efficiency through mergers. Banking reforms involves several elements that are unique to each country based on historical economic and institutional imperatives, for example, in Hungary. Evidence show that the reform in the banking sector was due to high under-capitalization of state owned banks, weakness in the regulation and supervision and deficiencies in corporate governance behavior of banks. Craig and Hardee (2004) conducted investigation on bank consolidation and concluded that as the banking consolidation continues, relationship lending is becoming increasingly rare. As credit scoring and formal, formulaic methods are used more and more, specifically by the large banks, many small businesses may find out that they do not fit the model, especially those enterprises with negative equity. Thus, small businesses may be filling the financing void that is being created by the bank consolidation with non-bank sources of funds. Hughes and Mester (1997) provide evidence to suggest that there are scale economics in banking, bank managers are risk averse, and banks use the level of their financial capital to signal the level of risk. This is an area of interest in Nigerian banking, especially when the return on equity is calculated in another two to three years and then compared with the historical industry average. Rhoades(1996) reported that American banks consolidated in response to the removal of restriction on bank branching across states, while Hughes, J.P; W. Lang; L.J. Mester; C.G. Moon(1998) concluded that the economic benefits of consolidation are strongest for those banks that engaged in interested expansion, and in particular the expansion that diversifies macroeconomic risk. From the literature, it has been observed that well-spaced and implemented financial reforms have the ability to boost financial development indicators. Detractors Hughes J.P; Mester, L.J; and Moon, C.G (2000) also provide evidence that scale economies exist in banking but they fail to account for risk. Thus, scale economies that result from consolidation and diversification do not produce better performance in banking, unless choice makes the banks management more conscious risk and moderates its decisions and actions appropriate larger scale of operation that leads to diversification only reduce liquidity and credit risk under the ceteris bus assumption, and they argued that this is not always the case. The examination of merger and acquisition in European banking and found that industry consolidation was beneficial (by providing social benefits) in the first economic integration stages, but could damage welfare in the more advanced stages as the few big banks safeguard price agreements to forestall foreign competition. The other side to European mergers and acquisitions was because of the possibility of failure. This, of course, ignores the fact that no bank can ever be too big to fail. All it takes for a bank to fail is for bad news? about a bank to get to its stakeholders (especially depositors) and they all walk in at the same time to take their funds! For such bank to survive, it must have sufficient liquid assets to meet all maturing and long-dated obligations (Igangiya, 2006). 2.2 Role of banks In the Economy Banks have an important role to play in an economy, as they are intermediaries between people with shortages and surpluses of capital. The products they offer will include savings, lending, investment, mediation and advice, payments, ownership, guarantee and, trust of real estate. (Bouma et al, 2001). This aspect is critical to this research study as the role of banks in any economy cannot be undermined therefore, the need to explore the effectiveness of their actions and how this ultimately affects the economy. The macroeconomic environment within which firms exist and, operate has an impact upon their activities and governments and other agencies operating at different spatial levels and it can shape behavior and their environment. (Worthington et al, 2001). According to Bouma et al, (2001), as a financial intermediary between market players, a bank has four important functions: First it transforms money by scale. The money surpluses of one person are mostly not the same as the shortages of another person. Banks transform money by duration. Creditors may have short-term surpluses of money, while debtors mostly have a long-term need for money. Banks transform money by spatial location (place). Finally, banks act as assessors of risk. As a rule, banks are better equipped to value the risks of various investments than individual investors who have surpluses available. Also, through their larger scale, banks are more able to spread risks. The major objectives of the banking system are to ensure price stability and facilitate rapid economic development; regrettably, these objectives are still yet to be realised in Nigeria as a result of some infrastructural deficiencies such as basic power, energy, and transportation. Also, the lack of a workable contingency planning framework which provides detailed policy actions to limit crises. The reforms of the banking industry will have an influence on the functions, as it ultimately shapes the way they handle their operations. The reform of recapitalisation and consolidation could mean a larger platform for banks to better carry out their tasks. This literature review takes a look at commercial banks in Nigeria when faced with the reformation of the banking industry, core competences needed by the banks to be successful and the effect on the macroeconomic indicators of the country. 2.3 The concept of capital base The recent call for recapitalization in the banking industry has raised much argument among the bank regulators, promoters and depositors as if shoring up of banks capital base is a new phenomenon in Nigeria. Historically, the failure of pioneer 1930s and 1940s brought about the enactment of banking ordinance of 1952. Banking ordinance of 1952 prescribed an operating license and emphasized on minimum equity capital for all banks (Omoh, 2007). Since then, raising of bank capital has become the hallmark response policy of the Nigerian monetary authorities. Capitalization is an important component of reforms in the banking industry, owing to the fact that a bank with a strong capital base has the ability to absorb losses arising from non-performing liabilities (NPL). Attaining capitalization requirement is achieved through consolidation, convergence as well as the capital market. Thus, banking reforms are primarily driven by the need to achieve the objectives of consolidation, competition and convergence. (Deccan Herald,2004), in the financial architecture. 2.4 The Concept of Bank Consolidation Consolidation is viewed as the reduction in the number of banks and other deposit taking institution with a simultaneous increase in the size and concentration of the consolidation entities in the sector (BIS, 2001:2). It is mostly motivated by technology innovation, deregulation of financial services, enhancing intermediation and increased emphasis on shareholder value, privatization and international competition (Berger et al, 1991). The process of consolidation has been argued to enhance bank efficiency through cost reduction and revenue in the long run. It also reduces industrys risk by eliminating weaker banks and acquiring the smaller ones by bigger and stronger banks as well as creates opportunities for greater diversification and financial intermediation. The pattern of banking system consolidation could be viewed in two different perspectives, namely; market-driven and government-led consolidation. The market-driven consolidation which is more pronounced in the developed countries sees consolidation as a way of broadening competitiveness with added comparative advantage in the global context and eliminating excess capacity more efficiently than bankruptcy or other means of exit. On the other hand, government-led consolidation stems from the need to resolve problem of financial distress in order to avoid systematic crises as well as to restrict inefficient banks (Ajayi, 2005). One of the general effects of consolidation is to the reduction in the number of players, moving the industry more toward an oligopolistic market (Adedipe, 2007). 2.5 Prospect of Bank consolidation In Nigeria The initial public offering by banks through the capital market when completed is likely to increase the level of financial deepening as evidenced in the upsurge in the volume and value of trading in stock market. The reform in the banking industry has been able to attract more foreign investment inflow, especially in the area of portfolio investment; this development if sustained will boost the level of economic activity especially toward non oil sector. The consolidation of banks is likely to attract a significant level of foreign banks entrance into Nigeria which will become a feature in the industry over time. This will bring about more confidence by the international community of the banking sector thereby attracting more foreign investment into the country. As the level of financial intermediation increase, interest rate is likely to fall and increase lending to the real sector that will generate employment and booster growth. 2.6 The Process of Bank consolidation In Nigeria Before any bank can be said to consolidate through merger and acquisition in the Nigeria industry, it must first seek and obtain the approval of the following regulatory and supervisory authorities in the industry. They include the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), Nigeria Stock Exchange (NSE) and the Corporate Affairs Commission (CAC) (CBN, 2004). Chapter 3: Research Methodology Introduction This chapter sets out the method employed in conducting the research. The choice of method was made based on the nature of the research problem. The purpose of this research is to discover, if any, the impact of bank consolidation on bank performance. Effort would be made to ensure that the methodology and conceptual framework adopted in the research are as relevant to the findings as the concepts and theories of the study. This is because the validity and reliability of conclusions are largely influenced by the research process itself. 3.2 Research Design This study is a causal or explanatory analysis since it seeks answers to questions related to the causes and determinants of bank performance. The research adopts a deductive approach. It outlines theories of director relationship to firm performance and draws hypothesis from them. These hypotheses are then tested using empirical social data to either confirm or reject the contentions. 3.3 Quantitative Versus Qualitative Data A clear distinction must be emphasized between quantitative and qualitative data. The former is concerned with the compilation of the results of research in a standardised mathematical form with the analysis conducted by means of statistics. (Saunders et al, 2003, p.378). Here variables are measured on a selection of scales and can then be arranged in order of arithmetical rigour. Conversely qualitative research is subjective in its approach of examining and reflecting on perceptions of understanding social and human activities (Hussey and Hussey, 1997). Qualitative research is inductive and researchers rarely know the specifics of data analysis when they begin a project (Neuman, 2006). It is concerned with the assemblage of data in a non-standardised, descriptive form, with the examination conducted through the use of theoretical models. 3.4 Data Type Raw or summarized data which has already been collected and stored for other purposes aside from that of the research in question is referred to as secondary data (Saunders et al, 2007). This research will make use of multiple-source secondary data collected from bank financial reports and CBN statistical publications available on the CBN, Guaranty trust and zenith banks websites, some paper source of data will also be used. The data/study will be restricted between the period of 2004 and 2006. The year 2004 is the pre-consolidation, 2005 consolidation while 2006 is the post-consolidation periods. The choice of data type is based on accessibility, cost saving and authenticity factors. Sample Selection The representative sample of the Nigerian banking sector to be used as a sample of the population under study is Guaranty Trust Bank PLC and Zenith Bank PLC. CAMEL ANALYSIS CAMEL is derived from the five components of a banks condition which include Capital adequacy, Asset quality, Management, Earnings, and Liquidity. Ratings are assigned for each component, and a composite rating is assigned for the overall condition and performance of the bank. These component and composite ratings are assigned on a scale of 1 to 5, with 1 representing the highest rating (strongest performance) and 5 representing the lowest (weakest performance) (Hirtle and Lopez, 1999). The camel analysis will be used to analyse the performance of banks during the pre-consolidation (2004) and the post-consolidation (2006) periods. Limitation The major difficulty that is likely to be encountered during the course of carrying out this research is the dearth of information, which is usually associated with emerging economies (including the Nigerian economy). Deliberate efforts would therefore be made to obtain information necessary to enhance the quality of the present research. 4.0 CONCLUSION In summary, the research tries to establish that bank consolidation helps in shoring up investment capital, enhances shareholder value, and protects creditors and depositors as well as strengthening banks capacities to attract funds at lower costs enhancing their liquidity positions. An efficient banking system tends to be one of the greatest focuses of the Central Bank of Nigeria since its establishment in 1959. Thus, sufficient capital base has largely constituted the Banks reform policy focus over the years. Hence, it may not be out of place to conclude at this material time that the ongoing reform policy is essential for the attainment of overall macroeconomic stability on a sustainable basis. Accordingly, the Central Bank of Nigeria is admonished to intensify its present efforts geared towards restoration of confidence in the banking system. The research work analyses published audited accounts of two (2) out of twenty-five (25) banks that emerged from the consolidation exercise and data from the Central Banks of Nigeria (CBN). We denote year 2004 as the pre-consolidation and 2005 and 2006 as post-consolidation periods for our analysis. In doing this, efforts would be made to examine empirically how bank consolidation through recapitalization has affected the performance of Nigerian banks during the period covered by the research. The data for the work are from secondary sources and would be obtained exclusively from the Central Bank of Nigeria and bank publications, both electronic and paper form. CAMEL analysis will be employed to analyse the financial data so as to ascertain the relationship between consolidation and bank performance BIBLIOGRAPHY Bernerd, B.P., (2006), The effect of recent changes in the financial sector development in Nigerian, Paper presented at the 15th General Assembly of the African rural and agricultural credit association (AFRACA), Bukina Faso. CBN., (2004), Guidelines and Incentive on Consolidation in consolidating Banking Industry. Charles, C.S. (2004) Consolidating the Nigerian Banking Industry to Meet the Developmental challenges of the 21st century. Paper presented at a meeting of bankers committee Abuja 6 July 2004. Larry, U; et al., (2004) Issues in Financial Institutions Surveillance in Nigeria. A seminar paper by CBN training centre Lagos. Eshodaghor, D.V., (2006), Impact of distressed banks in depressed Economy, Prospects for survival and growth. Bank failure in Nigeria, causes and dimension pp. 17 â€Å" 22. Ezeudusi, F. U., (2002) Marcus, G., (2003), An approach to the consolidation of Banks Merger Issues by regulators., A south African case business paper (4), NDIC Annual Report and Statement of Account . Oviemuno, A.O., (2006) Banking Consolidation in Nigeria and the strategies for Generating better returns. Ogunleye G.A. (2003) The regulatory imperatives of the Universal Banking concept in Nigerian NDIC quarterly, (11) No. (2), pp.20-30 Ochojele, D. I., (2003) The Nigerian banking industry, a review seminar paper. Osaije, E., (1992), Structural adjustment programme in Nigerian economy Victor, Ezeaku., (2003), Consolidation of Nigerian Banking Sector, CBN publication.

Crossing Borders Essay examples -- Personal Narrative Essay Example

Crossing Borders    The beat-up Arab minivan slowed tentatively under the scrutinizing gaze of the Israeli soldier on duty. The routine was simple. About halfway between Damascus Gate in East Jerusalem and Ramallah, the West Bank commercial center, the driver, blaring Arabic music on his radio, maneuvered around the dusty slabs of concrete that composed the Beit Haninah Checkpoint. He waited for a once-over by the Hebrew-speaking 18-year-old and permission to continue. Checkpoints-usually just small tin huts with a prominent white and blue Israeli flag-have become an integral and accepted part of Palestinian existence under Israeli occupation. But for me, a silent passenger in the minivan, each time we entered the no man's land between Israeli territory and the West Bank, my hea... ... by years of resentment and bloodshed. I have returned with a renewed energy for my studies and a determination to use these studies to contribute in the future-to both grassroots work and international diplomacy. As I continue on my journey, I will surely encounter more nervous checkpoint moments, stimulating the moral and social reflections that have become part of my border crossings.   

Gas Price Elasticity Essay -- essays research papers

Gas Price Elasticity The Energy Information Administration of the Department of Energy began tracking weekly gasoline prices in 1990 by means of a survey of 800 service stations around the country. The average retail price for unleaded gasoline posted its fourth record high during the week of June 12, 2000, increasing 5 cents a gallon to an average of $1.681. The price at the pump is higher than the same period last year by 56 cents and has risen 16.2 cents over the past month (Anonymous, 2000). How far will it rise? What will consumers do about the dramatic increases that are occurring with the arrival of each shipment? Price elasticity of demand would indicate that demand will fall as prices continue to rise, which in turn should result in a reduction of prices and a subsequent increase in demand. Such may prove to be the case, but the scenario is an unlikely one. Prices have increased all over the country, but price increases in the Midwest have been even more dramatic than in other areas. Across the region, prices are averaging $1.874 for a gallon of unleaded, but that same product is well over $2 a gallon in many of the cities of the Midwest. Higher grades average $2.003 across the region, marking the first time that average prices have been so high in a specific region of the country (Anonymous, 2000). There is so much concern over the rising prices that apparently are continuing to rise without abatement that the Federal Trade Commission (FTC) has "opened a formal investigation into soaring gasoline prices in some areas of the Midwest and will begin issuing subpoenas to oil companies by the end of the week" (Hebert, 2000; p. aol). Sen. Richard Durbin, D-Ill. believes that the oil companies will reduce prices right away once the subpoenas begin to appear, and the country's vice president has mentioned that collusion may be behind the oil companies' huge profits this year (Hebert, 2000). The summer driving season always brings higher prices in response to heightened demand, but never to the extent seen this year. Of course the final cost of gasoline at the pump is affected by the price of a barrel of crude, but to a lesser extent than oil producers would have consumers believe. The price of crude accounts for only 30 percent of the final cost to the consumer (Brodrick, 2000a). In 1981, the cost of crude accounted for 62 percent of the final c... ...evert to normal levels following the world oil shortage in the 1970s, but of course that never happened. Because the government controls more than 37 percent of the final cost, only 63 percent of the cost is open to being affected by market forces. Gas is a low elasticity product for the reasons discussed above; the wonder is that it does not cost even more at the pump. References Anonymous (2000). Economics 52 - Using Price Elasticities to Forecast Prices. At http://nimbus.temple.edu/~glady/GasPrice.html. Anonymous (2000, June 19). Record Gasoline Prices for Fourth Week in a Row. Reuters at www.aol.com. Anonymous (2000). The Strategic Petroleum Reserve. US Department of Energy, Fossil Energy at http://www.fe.doe.gov/spr/spr.html. Brodrick, Cynthia E. (2000, February 15). How do gas costs affect consumers? At http://aol.thewhiz.com/2000/02/000215d.asp. Brodrick, Cynthia E. (2000a, February 15). The cost of a gallon of gas. At http://aol.thewhiz.com/2000/02/000215b.asp. Georgy, Michael (2000, June 20). OPEC Prepares To Raise Oil Exports Again. Reuters at www.aol.com. Hebert, H. Josef (2000, June 20). FTC Opens Gas Price Investigation. The Associated Press at www.aol.com.

The Internets Accuracy and Usefullness :: Internet Research Papers

The Internet's Accuracy and Usefullness The following 15 web sites that I found on the Internet about the topic "Teenage Drinking and Driving" were given a rating between 1-5, with 1 being the lowest and 5 being the highest. I have listed these paragraphs in order with statistics being first, then prevention, and finally why teenagers drink and drive. Plus, I have an article and a book that I found on this topic. The information that I found on these web sites could be useful in writing a research paper, but I ask this question to myself: Can I find this data and information somewhere else? In my judgement when anyone is doing a research paper you can find the same data you find on the Internet in a book, magazine, or newspaper article. Although, I think that the Internet isn't very helpful in writing a research paper, some sites do have good data, but you just have to know how to find a good site. The web sites dealing with statistics were given a rate of 4 because I found them to be accurate sites for teenage drinking and driving, but you could find these sites in a book or article. The reason that I did not give them a 5 is because I did not feel that they were unique, and that you could not find them in another place. For example, in the web site called "Teenage Drunk Driving! Know the Facts!" This web site gave a lot of statistics on teenage drinking and driving, and how serious a problem it is in that specific age group (www.fugitive.com/is18.html). Another site that gave a lot of statistics was the site called "What the Research says about Youth and Drinking and Driving and Ways to Apply Research." This site gives statistics on teenage drinking and driving too, but it also talks about laws that should be passed in order to come down harder on DUI's because of the deaths that occur with these accidents (www.ncadd.com/tsra/abstracts/youth.html). The web sites in this paragraph also deal with statistics and was given a rating of 3. Although, these web sites were less accurate than the 4’s, I would probably use some of these. The first one comes from the California Office of Traffic Safety, gives statistics about Teenage Drinking and Driving in California (www.ots.ca.gov/campaign/3d98impaired.html) Next was the site from the Arizona Department of Safety, gives information on statistics of drinking and driving in Arizona compared to other states (www.

Autonomous Cars Essay

Imagine a world where you can get in your car without the worry of driving alongside drunks and teenagers. The once fictional dream of riding a driverless car is now becoming a reality, with many large companies including Mercedes-Benz, Toyota, BMW, Audi, and Google, currently investing in the development of this contraption. What is a driverless (or autonomous) car? It is an automobile run by an autopilot that allows passengers to travel safely and quickly to their destination with minimal to no human control. The Institute of Electrical and Electronics Engineers (IEEE) predicts that by the year 2040, our roads will be populated with autonomous vehicles, with up to 75% of all cars being driverless (Newcomb, 2012). As human civilization advances technologically on a daily basis, we are becoming less dependent on people and more dependent on robots, which many view as positive. Self-driving cars are a step in the right direction for society, and ought to become available to the public as soon as possible for a more efficient and secure driving experience. The primary concern with transportation is safety; hence the most obvious and largest benefit to the replacement of regular cars with self-driving cars is the decrease in traffic collisions. â€Å"Ninety percent of our road accidents are related to bad driving behavior; driving recklessly and speeding under the influence of alcohol, changing lanes without signaling, driving on the hard shoulder and passing through red lights.† -Lt Gen Dahi Khalfan Commander in chief of the Dubai Police (Olarte, 2011). The majority of car crashes are caused by human errors, and if this proposition is implemented, the number of fatalities due to car accidents per year will dramatically plummet. In 2012, a Google driverless car had driven over 300,000 miles, with only two accidents being reported, both of which had been a human’s fault (Ermson, 2012). Autonomous cars will have quicker reflexes than humans, make more reliable judgments and will not commit silly mistakes such as texting whil st driving. As a collateral for reducing accidents, this innovation could theoretically also save the government trillions of dollars each year. A major issue for drivers today is congestion. Picture Sheikh Zayed road at 6 AM on a weekday. When a car brakes, the driver behind takes a couple of seconds to react and stop. Now  this goes on and on, causing heavy traffic and wasting everyone’s irreplaceable time. Autonomous cars are expected to have a completely revamped traffic system, one lacking traffic lights and stop signs. Vehicles will be capable of communicating with each other by transferring crucial information via sensors, allowing them to predict their expected positions, minimizing the spaces between them. With the small distances between cars and the non-stop flow of traffic, a substantial amount of time will be saved during trips and congestion will be considerably alleviated. Another burden to be lifted off of society’s shoulders is the expense of owning a car. A new public transport system that operates entirely on driverless cars could be put into service. Hence possessing your own personal autonomous vehicle will be unnecessary and costly because the time wasted in a parking spot could be utilized to transport other individuals, and a subscription to a public transport system is a much cheaper alternative. Autonomous vehicles will also save owners insurance money because as the rate of incidents drops, vehicle insurance will be viewed as optional rather than obligatory. In addition, this innovation will save the costumer fuel money by reducing the frequency of braking and acceleration, which has an adverse effect on fuel consumption. As expected with a very technologically advanced piece of machinery, when autonomous cars first hit the market they will not be affordable for everyone. But given enough time, the prices will go down and self-driving cars will slowly but surely replace regular cars. A while after the integration of this technology into our daily lives, there will be an inevitable loss of driving related jobs. But as the s aying goes, when one door closes another opens, and these robots aren’t going to build themselves. The immediate effect will undoubtedly lead to a loss of jobs, but with the success of the production, in the long term new jobs will appear and consequently completely fresh industries as well. With this huge development in electronics, admittedly garage mechanics and taxi drivers might struggle with income, but software engineers and programmers are going to be in demand more than ever, and thus economic balance is restored. Now I know what you’re thinking, isn’t that unjust to those who are unable of attaining academic degrees? At first, maybe. But I believe that given enough time, the criteria required for intelligence and information based jobs will become less constricted. This is because the advances in software  programming and other similar areas of expertise will make related jobs uncomplicated. There are countless examples of such occurrences in history, a notable one being the industrial revolution. Just like today, people back then were also worried about losing their occupations to machinery. But the introduction of steam engines and the replacement of physical labor with machine work pushed farmers towards other professions that were themselves created by the new technology, and thus there was an unprecedented blossoming in the economy. All the benefits I have mentioned, the unparalleled road safety, the smooth and quick ride, the low expenses and many more outweigh the very scarce negatives. Self-driving cars will revolutionize the auto-industry and will be a turning point in our lives. Soon enough driver licenses will cease to exist, and elderly people, children, and handicapped persons will no longer struggle with land transportation. The Earth Institute of Columbia University predicts a cutback in the number of cars on the road in the US by a factor of 10 (Burns, Jordan & Scarborough, 2013). Four states in the US have already authorized the use of autonomous vehicles (Kelly, 2012), and for the good of all, I believe the rest of the world should follow suit. â€Å"What can we do to create shared prosperity? The answer is not to try to slow down technology. Instead of racing against the machine, we need to learn to race with the machine † (Brynjolfsson, 2013). References Brynjolfsson, E. (Performer) (2013). Eric brynjolfsson: The key to growth? race with the machines [Theater]. Available from http://www.ted.com/talks/erik_brynjolfsson_the_key_to_growth_race_em_with_em_the_ machines?quote=2137 Burns, L. D., Jordan, W. C., & Scarborough, B. A. (2013). Transforming personal mobility. Manuscript submitted for publication, The Earth Institute, Columbia University, New York, NY, Retrieved from http://sustainablemobility.ei.columbia.edu/files/2012/12/Transforming-Personal- Mobility-Jan-27-20132.pdf Ermson, C. (2012, August 7). Retrieved from http://googleblog.blogspot.ae/2012/08/the-self- driving-car-logs-more-miles-on.html Kelly , H. (2012, October 30). Self-driving cars now legal in California. CNN. Retrieved from http://edition.cnn.com/2012/09/25/tech/innovation/self-driving-car-california/index.html Olarte, O. (2011, April). Human error accounts for 90% of road accidents. Alertdriving, Retrieved from http://www.alertdriving.com/home/fleet-alert-magazine/international/human-error-accounts-90-road-accidents Newcomb, D. (2012, September 18). You won’t need a driver’s license by 2040. CNN. Retrieved from http://edition.cnn.com/2012/09/18/tech/innovation/ieee-2040-cars/