PROBLEMS OF NEW BANKS IN NIGERIA

Abstract: The purpose of the study was to identify challenges facing New banks in Nigeria. A descriptive survey design was applied to a population of 48 banks operating in Nigeria. The target population composed of the management staff currently employed at the head offices of the various New banks in Nigeria. The population was composed of Senior, Middle and Junior or Entry level Management staff. The study concludes that the by various challenges like growth barrier, regulatory constraints, risk and finance management culture and additional capital challenges. In addition, the study concluded that New banks face challenges in deciding how best to implement a solution that will allow them to comply with Basel III, how to operate the systems and processes for improved operational effectiveness, and how to understand and ultimately reduce their capital requirements. The study recommends that Banks should manage their risks more closely and avoid a build-up of unintended risk, reducing the opportunities for regulatory capital arbitrage. This would go a long way in eliminating growth barriers, regulatory constraints, capital adequacy requirement, risk and finance management culture and additional capital challenges.