The Case Study Uwanilebank Plc Background Information It was not in the widest imagination of Agba-ilu, the Group

Managing Director /Chief Executive of Uwanilebank Plc (UBP), that a day would come in future that he would be sitting a-top a major banking enterprise in Nigeria. Although, he started his banking career early in life at about a year or two after his 20th birthday, but in those days, only expatriates were recruited to head his bank. At a time when the first Nigerian was appointed to the chief executive position of the bank the man that was appointed was already above 50 years in age and has been in the banking hall for more than 30 years. But here he is today Dr Leaderight Oju-inu popularly known as Agba-ilu by all and sundries in his bank, sitting in the board paneled exquisite office of the chief executive of his bank the position he has occupied for the past 19 years consecutively. Agba-ilu enjoyed being employed by one of the oldest bank in Nigeria at the beginning of his banking career. He started his working life with only Ordinary National Diploma in Business Administration from the prestigious Yaba College of Technology. His set was the brightest of that institution to date. Out of a class of 25 students, none returned for HND programme. About 10 of them had the priviledge to continue their studies overseas in different facet of human endeavours even in the fields that had no bearing with their initial qualification such as engineering and medicine. Eight members of the set who went to banking industry forged ahead successfully and about six of them attained the post of chief executive of their respective banking institutions, the remaining two eventually ended up being an executive director of strategic portfolio of in their respective bank. The rest that went into real sector of the economy, all made landmark achievements in their respective careers. It was therefore not of much surprise that Agba-ilu attained what he later got in life. Within 10 years of his first employment, he had passed the final professional examination of the Institute of Chartered Secretaries and Administrations as well as that of Institute of Bankers both in UK. He had also had the privilege of attending five overseas courses which sharpened his understanding in the area of core issues in banking operations. During this period he worked in seven different departments of the bank and had been admitted into the exclusive and respected circle of the authorized signatories of his bank. Even with these achievements, he never had such ambition of attaining the post of the chief executive of any bank. Had he been met on the way home at the end of a working day and be told by more powerful sooth-sayers or fortune-teller and like Macabeth in one of Shakespeares classics, be addressed as the Thanes of Candor which in his case would have translated to becoming the MD/CEO of a respected bank at a future date, such encounter would not have push him to be so ambitious. He is a man who had learnt by experience that apparent success attained by cunningness and crime never last. Agba-ilu only had an opportunity to prove what he believed can work and was fortunate to step out at the right time in the right direction. The success story of his bank after 19 years under his guidiance proved beyond reasonable doubt that he knew what it takes not only to be a thoroughbred banker of excellence but also manifested the required traits of good leadership.
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He spent 12 years in his first employment before the changed to another bank. By the time he left his first bank he had worked in the Corporate finance and Investment Department of the bank for four years. During this period, he was opportune to work on secondment to the holding company of his bank in London, for six months, where he was exposed to practical hands-on-experience in packaging and delivering wholesale banking services to corporate clients and upcoming industrialists. When he left the bank, it was more than mere coincidence that he moved into an investment bank, it was a passion to satisfy the inner urge of being an investment banker. This was the reason behind the offer he took in the first banking institution to specialize in merchant banking in Nigeria. After about four years and two rapid promotions he changed employment to an indigenous merchant bank owned and managed by a man who was brought up to promote and reward excellence. It was at this bank he was made to discover the untapped opportunities in bank services to corporate clients in Nigeria. By the time he left the bank at the end of the second year of his engagement he was already the Head of Operations of the bank. However, this seemingly exalted position was not strong enough to dissuade him from resigning his lucrative employment to face the challenge of leading an organisation that would compete against the rigid traditions of bureaucratic and conservative service delivery of banking services as it existed then in Nigeria. In actual fact, about 40 banks both commercial and merchant banks were established abut the same time he ventured out to lead a new banking. This occurred during the five years of banking boom which ushered in a flora of banking organizations later to be known as the fourth generation bankers in Nigeria. A period of more than one and a half decades, which proceeded this time, was characterized by sluggish expansion and growth within the banking industry in Nigeria. This inactivity and passive growth was partly due to inflexible operating terrain of rigid regulations and arm-chair syndrome which pervaded the entire banking operations of that time. With the deregulation that followed the Structural Adjustment Programme era, vibrancy was injected into the industry. This gave challenging opportunities to young enterprising bankers like Agba-ilu who dared the consequence of possible failure to explore the then uncertain waters of merchant banking in Nigeria. But the relaxation in regulatory rigidity had its damaging consequences. Most banking institution that came into operation within the period became neck-deep in unethical practices. Some came to the business of banking just to promote forex trade the main thrust and core business opportunity that accompanied the SAP era. It was a period when the entire economy promotes paper transactions rather than the required investment that would have promoted the expected growth in the real sector of the economy. In the end, the outcome was disastrous for the banking industry and the Nigerian economy as a whole. More than 30 banks were liquidated before 10 years of commencement of their operations. Even some went under before the fifth anniversary of their coming into limelight of being licensed and recognised as operators in the banking industry. According to the CBN Annual Report and Statement of Accounts for 1985, only 29 commercial banks were operating in Nigeria at the end of that fiscal year. This was after about ninety-four years of the commencement of banking activities in Nigeria. In 1993, just eight years thereafter, there were more than 145 banks in Nigeria. However before 1999, more than 50 of these operators had failed and gone out of existence. The major cause of their failure was not only unethical operational practices but the greater
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proportion of their income came from forex round tripping instead of interest on facilities that constitutes the main-stay of conventional banking institutions. In later years, the Annual Banking Supervision Report of CBN identified some of these unethical practices that thrived among operators in the banking industry of the post SAP era. Some of these vices are operational while others are oriented towards dealings in foreign exchange trading. The apex institution later evolved strategies to curb these excesses and also imposed some stiff penalties in monetary fines or even revocation of operating license of erring bank caught with undeniable proofs. In swift reactions, operators in the banking segment of the nations financial system began to align their operations to the conventional banking business to escape the sledge of CBNs punitive hammer. But for most of them, it was to late an action to suddenly adopt for immediate business practice. Many were caught and penalized, but the apex bank was mild in imposing stipulated penalty probably because of the grave consequence such would have had on the industry and the entire economy. Nevertheless, the market forces unleashed its irreversible consequences. As a result of the stabilization securities introduced then by the apex bank to mop up within six months more than N12billion from the economy, many banks, which had operated only on borrowed funds to shore-up their fictitious capital base collapsed. While many failed, few of these fourth generation banks survived but those that survived were less than 20 percent of the total operators that came into the banking business within the period of 1988 and 1993. Among the operators that survived and remained in operation to-date with impressive performance indices is the Uwanilebank Plc (UBP). Commencement and growth in capital base of UBP Uwanilebank Plc (UBP) commenced banking business on March 1, 1989 as a merchant bank. Its three founding promoters contributed the minimum paid up capital. Although other dignitaries in the industrial sector were invited to the Board of Directors of the bank, none of these other directors had investment in the take-off equity of the bank. The N12million paid up capital was raised from personal contributions and mostly through commercial papers rolled over for several terms of three months each. However by the end of its third financial year, the facility had been settled. Beginning from the very first year of operation, the bank made history by being the first of its peers to pay dividend at the end of its first accounting year. Moreover in the case of UBP it was only 10 months period that made up its first financial year. The credit deservedly belong to Agba-ilu whose hindsight ensure that the management of the bank concentrate on the activities that ensure the early built-up of the initial capital base of UBP. The drive for improved and solid capital base of the banks management could be seen in the Table 1 below. Without an iota of doubt, the aggressive pursuit of stable financial position of the management also appeared to be favoured by the Board. Dividends and bonus issue reinforced both the Boards confidence in the management to accord them every support that gave rapid improvement to the banks capital base. In the chairmans address at the AGM that approved the operating result of the bank for its financial year December 31, 1994, he stated in part that the Board is proposing that
3

N40,456,397 of the banks retained earnings and balance of share premium be capitalized. This according to him will be distributed as bonus shares to the existing shareholders in the ratio of 2 to 3 already held. The proposal was approved as expected since its overall benefit reached the least equity shareholder of the bank. Consequently, the paid up capital of the bank was increased further from N60.6 billion to N101.1 billion. The outcome of this aggressive drive for a continuous increase in capital base in the first five years of operations of UBP is shown in Table 1 below. Of equal importance were its operating performance every financial since it started banking business. The fact in Table 2 below during the same period as in Table 1 attested to the banks process.
Table 1 Growth in Shareholders Funds of UBP Year 1989 1990 1991 1992 1993 1994 Paid up share capital N000 12,000 15,456 26,008 60,685 101,141 202,282 Statutory Reserves N000 2,738 9,056 20,163 52,168 189,874 353,071 Shareholders Funds N000 20,568 41,118 70,709 156,549 413,285 593,167

Table 2 Performance Indices of UBP 1989 N000 Income 48,482 Profit after 10,950 taxation Reserve for 3,000 bonus issue Dividends 3,000 1990 N000 147,884 25,274 5,409 10,304 1991 N000 226,307 37,022 7,802 19,506 1992 N000 537,826 106,685 60,685 14,819 1993 N000 1,950,517 459,019 202,282 101,141 1994 N000 1,595,393 543,990 364,108 -

Business Strategy and Market niche At the commencement of operation, Agba-ilu strategic focus was to harness the latent opportunities that any of the three banks in which he been involved were reluctant to embrace. In the years following the post SAP era, there were some set of foreign industrialists that dominated the textile industry and merchandise of imported goods in Nigeria. These industrialists in local language were known as the Koraas. They usually operate in chain of business. Within a typical group of a Koraas business would be manufacturing, distribution, insurance and clearing agents, each established and registered as a separate legal entity. All the business within the group would then be handled by a family company. This made them a hard nut to crack. In addition they
4

operate a highly leveraged company and this made banks to shy away from involving in any business with them as a result of the perceived risk. Agba-ilu was able however to turned this risky venture into a lucrative business for his bank. Within five years of operations, he had more than 70 percent of the Koraas business finance in Nigeria. In dealing with Koraas, the bank established Client Relation Unit within the Credit and Marketing Department of the bank. In this unit were two seasoned Custom men who had retired from government employment and had been working as cleaning agent before they were employed by the bank. These were the people in charge of clearing at the seaport, all imported goods financed for the Koraas. The bank employed the instrument of hypothecation of underlying assets for all payment made via bankers acceptances or terms loan for its customers. Goods cleared were taken directly to the warehouse leased by the bank for this purpose. The bank also insisted that its appointed inspection agents must certify the goods before shipment from the port of origin. Failure to meet this condition by any customer implies that payment will not be authorised through the correspondent bank in London and Paris. In foreign trade transaction and according to the maxims in the UCP 550, banks deal with documents and not goods. It is only on receipt of current document conferring owner ship and attesting to shipment would the bank issue payment authorization. By this practice, the bank was able to navigate successfully the uncharted and muddy water of the financing of Koraas business ventures. Each business deal successfully completed brings a harvest of revenue which other banks could not boast of. In addition the bank developed a saving strategy based on annuity formula that compound interest on basic savings. This enabled the bank to increase the deposits base from customers. In the banking industry where financial indices is of great significance, the bank according to the date published in its audited financial statements at the end of its 2007 financial year as shown in Appendices 4(a) and 4(b) reflected a positive net liquidity gap. The bank also package some hybrid term loan in form of bankers acceptance of half year tenure each but renewable for two more sessions at a higher premium. But each loan is tied to specific realisable chattel to provide the bank with sufficient coverage in the event of default on the part of the customer. In a major move to embrace the practice at the international financial market and also prove the worth of its brand name, the bank facilitated a number of off-shore project finances for major investment in the real sector of Nigerian economy as shown in Appendix 7. For its corporate customers, long term facilities are packaged to suite the pattern of the expected net cash flow from such projects. But in its operations reliance on money market securities as investment avenues for excess short term liquidity were relatively low. The same is also true of its reliance on this source as the avenue from moving find to meet its short term liquidity needs. The bank has recently shifted attention to borrowing at the international market to meet major medium to long term liquidity needs. The terms at which these off-shore facilities are raised give tenure of not less than five years and at an annual interest of less than 10% per annum. Corporate Structure and Oversight functions At the inception of its operation the bank maintained a compact Board size of seven members of which two are executive the managing Director and the Deputy Managing
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Director who is a British citizen. Even as at the end of its 14th year of operation, the Board size has only increased by three to 10 memberships. The additions were as a result of the promotion of three of its pioneer staff to the post of executive directors after the departure of the expatriate Deputy Managing Director. Thus the bank has maintained stable Board members which ensure continuity in policy and operating strategies. The bank was also able to emerge with its existing corporate name after the consolidation reform of 2005. In actual fact, the management only combined the existing operations of three banks in which the bank already had controlling interest directly or indirectly through its own investments or the investments of its subsidiaries. With a common operating philosophy, the merger among these operators of the same global family was without any serious hitch. But the merger had its effects on the Board and its oversight functions. Prior to the consolidation exercise, Agba-ilu had became the Executive Vice Chairman of the Bank. In few years had the reform not been truncated like the New Agenda for Naira, he would have emerged as the banks first Executive Chairman. However, in compliance with the code of corporate governance for banks, this title was dropped but he continue to be the Group Chief Executive of the bank. The size of the Board was also increased to 19 members including eight executive directors. But at the end of its second financial year after the consolidation reform had been completed, the Board still retain the membership of the four non-executive members including the chairman all of whom have been on the board for a minimum of 18 years. During the financial year ended 2007, the Board met seven times. It had four committee namely Audit Committee, Finance Committee, Establishment Committee and Credit Committee. The Audit Committee had one executive director as a member. The Group managing Director and one executive director were members of the Credit Committee. The chairman did not belong to any of these committees as reported in the banks financial statement for 2007. But the audit committee had only one non-executive director as a member. This director was not the chairman of the committee. The highest shareholding by any individual was 4.59 % of the entire banks share capital held by the Group Chief Executive. The next in line was the chairman, none of the existing executive director had up to 0.5 % the banks share capital. Merger and Post Consolidation Era It was a significant landmark that the bank merger was hitch free. While others were scrambling for willing partners, UBP consolidated on its existing associates and subsidiaries. Four major issues according to the Group Chief Executive of UBP contributed to its seamless merger namely: - the common legacy and existing ties of their inter working shareholding. - the adoption of best practice approach during the merger process. - determined focus to maintain customers confidence through minimal or no disruption to their transactions with the bank; and - integration of technological infrastructure that enables the customers to transact business from any location. It is of note that no rationalization of staff workforce occurred in the course of the merger and thereafter. After the consolidation the bank adopted a new vision with customers satisfaction as its core value. It haws also ventured beyond domestic frontiers to established fully owned subsidiary in
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other countries of West Africa. Two years after the reform the bank boasted and recorded the feat of being the first bank to cross the boundary of one-billion U.S Dollar in shareholders fund. The results of its re-capitalization post consolidation as well as its operating performance are shown in Appendices 1 and 2 attached. The extracts from the financial statement of three first generation bank were also shown in Appendix 3 to afford objective assessment of the operating performance and position of the bank amidst the comity of long established operators in the industry. The risk rating of banks assets in Nigeria on the basis of Based Accord II compliance as published by the CBN is in Appendix 6.

Appendix 1 Uwanilebank Plc. Balance Sheet Year ended 2007. Note ASSETS Cash and balances with Central Bank of Nigeria Treasury bills and other eligible bills Due from other banks Loans and advances to customers Advances under finance lease Investment securities Investments in subsidiaries Investments in associates Statutory deposit Other assets Fixed assets Total Assets LIABILITIES Customer deposits Due to other banks Current income tax Deferred income tax liability Other liabilities Insurance Funds Borrowing Total liabilities CAPITAL AND RESERVES Share capital Share premium Retained earnings Other reserves Deposit for shares Shareholders funds Total liabilities and equity Off balance sheet engagements 58,399,717 87,426,864 174,377,719 252,779,918 15,801,912 29,830,371 2,792,314 2,236,426 19,418,957 20,482,838 663,547,099 455,701,198 1,593,750 6,280,743 1,841,229 34,003,237 8,248,198 507,668,355 5,361,793 37,656,150 10,541,072 11,948,790 90,370,939 155,878,744 663,547,099 118,502,046 30,471,474 43,033,793 73,120,512 158,938,078 10,826,451 14,576,840 884,055 1,805,821 16,173,614 11,072,845 360,903,483 252,280,521 2,553,261 943,817 49,090,109 2,124,658 306,992,366 5,361,793 37,656,150 2,647,825 8,245,349 53,911,117 360,903,483 39,851,025 Bank 2007 N000 Bank 2006 N000

Appendix 2 Umanilebank Plc. Profit and loss accounts For the year ended 2007. Bank 2007 N000 Interest income Interest expense Net interest income Net fee and commission income Foreign exchange income Other operating income Net operating income Provision for loan losses Operating expenses Operating profit Share of profit associated companies Profit before tax Tax Profit after tax Minority Interest Profit for the year attributable to shareholders Appropriations: Transfer to statutory reserve Transfer to Small and Medium Scale Industries Enterprise Equity Investment Scheme Reserve Interim dividend paid Earnings per share actual and adjusted (2,222,065) (2,578,775) 50,315,049 (16,719,844) 33,595,203 24,418,277 1,933,651 5,733,982 65,681,113 (5,182,547) (39,546,899) 20,951,667 564,817 21,516,484 (6,702,720) 14,813,764 14,813,764 Bank 2006 N000 25,032,665 (7,925,615) 17,107,050 9,378,855 811,780 3,567,663 30,865,348 (513,252) (19,798,429) 10,553,667 475,845 11,029,152 (2,433,593) 8,595,919 8,595,919

(1,481,376) (3,217,076) 138 k

(859,590) 110 k

Appendix 3 Basic items from financial statements of four banks Asaaju Bank Atelebank 2007 Nm Total Asset Liabilities Shareholders fund Off Balance sheet Engagement Gross earnings Interest income Interest expenses Other income Operating income Provision for Doubtful a/c (2519) (3617) 37365 (7938) 43179 (3678) 28280 3163 47586 5164 48686 (5183) 44730 (513) 20311 General overhead 43905 132737 Nm 79299 51245 13237 28054 66062 80662 Nm 61243 37218 7750 29468 24025 53493 (33748) 24459 Nm 71090 46654 12591 34063 24436 58499 (32283) 16794 Nm 50736 34089 7199 26888 16649 43537 372325 Nm 101106 68575 26531 42044 32531 74575 167184 Nm 860795 57207 32328 28872 61200 (43522) 118502 Nm 60490 50315 3360 32086 65646 (39547) 39851 Nm 28600328 25032665 7925615 17107 13758 30865 (19798) 272881 685530 77351 2006 Nm 2007 Nm 2006 Nm 1102348 937527 164821 Ukubank 2007 Nm 2006 Nm Uwanilebank 2007 Nm 2006 Nm 360903 306992 53911

540129 479149 60980

619800 517564 523170 421879 96630 95685

851241 803620 47621

663547 507668 155879

24879 16719844

Net iterest income 38008

Overhead expenses (41446)

(24602) (44424)

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Appendix 4 Liquidity Profile

For the year ended 2007 (a) Asset
0 to 30 days
N000

31 to 90 days
N000

91 to 180 days
N000

181 to 365 days Over 1 year

N000 N000

Total
N000

Bank Assets Cash and short term fund 58,399,717 Treasury bills and other Eligible bills Due from other banks Loans and advances to Customers (Gross) Advances under finance Lease (Gross) Investment securities Investment in subsidiaries Investment in associates Other assets (Gross) Fixed assets Total assets 376,026,582 38,629 1,569,026 59,174,576 74,020 11,330,186 53,090,301 3,727,361 8,140,340 54,090,301 1,186,308 128,002 11,129,281 29,830,371 2,792,314 2,236,426 238,665 20,482,838 136,859,318 16,155,599 29,830,371 2,792,314 2,236,426 21,406,219 20,482,838 679,773,359 120,659,527 29,103,124 31,103,124 15,337,989 70,149,423 266,665,292 20,981,964 174,377,719 18,667,246 10,339,652 37,438,002 87,426,864 174,377,719 58,399,717

(b)

Liabilities
302,930,404 -

Deposits Due to other banks Current income tax

40,239,348 -

1,393,882 -

1,086,137 6,280,743
-

110,051,427 1,593,750 0
1,841,229

455,701,198 1,593,750 6,280,743

1,841,229

Deferred income tax liability Other liabilities Borrowings Net liquidity gap 312,700,255 63,326,327

9,769,851

11,067,506 -

5,726,127 7,120,009 46,502,573

7,355,109 14,721,989 39,368,312

84,644 8,248,198 121,819,248 15,040,070

34,003,237 8,248,198 507,668,355 172,105,004

51,306,854 7,867,722

28 February 2006
Total assets Total liabilities 193,676,273 191,763,474 35,112,962 33,919,117 1,193,845 61,189,446 28,048,662 33,140,784 26,772,914 55,433,112 372,184,707 21,304,933 31,956,192 306,992,378 5,467,981 23,476,920 65,192,329

Net liquidity gap 1,912,799

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Appendix 5 (a)Loans and advances Overdrafts Bankers acceptances Term loans Other loans Loan loss provision Interest in suspense (b)Customers Deposits Current and demand deposits Savings deposits Term deposits Appendix 6 Risk Weight for Bank Asset Type of Assets weight 1. 2. 3. Asset Cash in Hand XX Cash reserves with CBN XX Balance hold with: (i) other banks in Nigeria (ii) other banks outside Nigeria including foreign currencies held Federal Government Stock Unclear effect Treasury certificate Treasury bills Negotiable certificate of deposit Non-Negotiable certificate of Deposit Quoted investment Unquoted investment Loan and Advances to: (i) Federal Government (ii) Bankers acceptance (iii) Owners occupied of residential Mortgage (iv) Private sector commercial real Estate (v) Other loans (vi) Commercial paper Fixed Assets Other Assets Contra Items Contigent liabilities 2007 N000 95,587,129 24,198,893 135,697,566 11,181,704 266,665,292 (11,323,013) (2,562,298) 252,779,981 219,061,058 60,797,623 175,842,067 455,701,198 Net Value 2006 N000 60,048,504 20,760,905 76,382,929 3,842,225 170,034,563 (9,244,757) (1,851,728) 158,938,078 143,556,202 24,203,651 84,520,668 252,280,521 Applicable risk index % 0 0 20 20 0 20 0 0 50 100 100 100 0 0 100 100 100 100 100 100 100 20 Risk value 0 0

4. 5. 6. 7. 8. 9. 10. 11. 12.

13. 14. 15. 16.

Source : www.cenbank.org 12

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Appendix 7 Summary of Off shore Finance arranged and raised by UBP Project Type Private Refinery Purpose Private refinery Source of funding Syndicated Project Finance Line arranged by African Export Import Bank. Purchase of Turbines Construction of Gas Turbines Petroleum Products Marketers receivables Facility Telecommunication Importation of Telecommunication Equipment Sorghum Malting Plant Import Finance Facility Purchase 0f Rigs Bulk Paper Merchandising Fertilizer Plant Execution of oil service Contracts Importation of Marcopolo Buses Financing of Petroleum Products importation Importation of Bonded bulk African Export Import Bank paper Conversion and processing of organic waste to fertilizer Export Import Bank of US US$4.2m US$6m African Export Import Bank US$20m Syndicated facility arranged by African Export Import Bank African Export Import Bank US$30m US$50m Importation and local purchase Petroleum Syndicated facility arranged by African Export Import Bank/ Standard Chartered Bank, London African Export Import Bank US$100m US$100m BNP Paribas, FBN P/c & IB Plc US$120m Amount US$413m

The Federal Polytechnic Ede Department of Banking and Finance 2nd Semester Examination 2007/2008 Academic Session Class HND 11 B/F (FT) Course: HBF 427 Management of Financial Institution Time Allowed 2hrs 15mins Lecturer R. A. Oluwatusin Instructions: i. ii. iii. iv. v. Attempt Question 1 and any three other questions. All computation in Naira or any other currency should be to the nearest whole number. Computation in percentage should be stated at two places after the decimal point Straight favoured and concise answer are requisite for obtaining maximum score per question All answer should reflect in depth professional understanding and application of the whole concept of principles and theories that govern banking operations.

Question 1 (a) (b) ration. Question 2 Assess UBP compliance with the requirements of the code of corporate governance for bank issued by CBN on March 1, 2006. Question 3 Given the data in Appendices 4 (a) and 4 (b), compute the GAP analysis for the bank for its year ended 2007 and comment on the banks figure of its net liquidity gap and also the implication of your answer to the banks operation. Limit your analysis to the Naira GAP and relative GAP. Question 4 The merger which gave birth to the new UBP was seamless according to its convey managing director. (i) (ii) What factors assisted the success of the merger from insiders view. Based on the data of in Appendix 3 assess the impact of the consolidation on UBP in comparism with Given the fact stated in the above case and relevant data in the appendices, ascertain the banks Based in (a) above and other relevant information in the appendices compute the capital tier 1 of core capital for its financial year 2006 and 2007. the bank and compare it with the requirement of Based Accord II specification for capital adequacy

the three other first generation bank. Limit your analysis to growth in shareholders fund and operating efficiency for 2007. Question 5 There is doubt that the consolidation reform which brought up the types of UBP has a major impact on the economy of the nature based on international experience of BIS research what are the observation of such 2

impact in economics that witness consolidation in the financial sector which could serve as lesson to uniform government policy on this issue in Nigeria.