CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Are bank workshop veritable means for fostering banking growth and developing the economy as a whole? In a developing economy, such as Nigeria, financial sector development has been accompanied by structural and institutional changes and the sector generally have long been recognized to play a crucial role in economic development of the nation (Kanayo, 2011). Banking workshop have been an on going phenomenon around the world right from the1980s, but it is more intensified in recent time because of the impact of globalization which is precipitated by continuous integration of the world market and economies. (Adegbaju and Olokoyo, 2008). Banking workshop involve several elements that are unique to each country based on historical, economic and institutional imperatives. In most cases, bank workshop are embarked upon to forestall banking crises or cushion the effects of a recent crisis.
Banking sector workshop have come into play due to banks inability to meet up to required obligations or satisfy their stakeholders which overtime have led to subsequent failures and crises. A banking crisis can be triggered by weakness in banking system characterized by persistent illiquidity, insolvency, undercapitalization, high level of non-performing loans and weak corporate governance, among others. (Adegbaju and Olokoyo, 2008). Bank crises in Nigeria were also due to the failure of the CBN and other government bodies with oversight functions for the financial sector. Lack of co-ordination among regulators prevented the CBN from having a comprehensive consolidated bank view of its activities. In addition, regulations concerning the major causes of the crisis were often incomplete. Likewise, Nigeria, just like any other highly open economy, with weak financial infrastructure, can be vulnerable to banking crises emanating from other countries through infectivity.
Banking crisis usually starts with inability of the bank to meet its financial obligations to its stakeholders. Some banking reform programmes occur, some of the time, independent of any banking crisis. Irrespective of the cause, however, bank workshop are implemented to strengthen the banking system, embrace globalization, improve healthy competition, exploit economies of scale, adopt advanced technologies, raise efficiency and improve profitability. Ultimately, the goal is to strengthen the intermediation role of banks and to ensure that they are able to perform their developmental role of enhancing economic growth, which subsequently leads to improved overall economic performance and societal welfare. The workshop are designed to enable the banking system develop the required flexibility to support the economic development of the nation by efficiently performing its functions as the pivot of financial intermediation (Lemo, 2005). Thus, the workshop were to ensure a diversified, strong and reliable banking industry where there is safety of depositors’ money and position banks to play active developmental roles in the Nigerian economy.