Effect of Consolidation on the Performance of Nigeria Banks

1.0 Introduction Banking reforms have been an on going phenomenon around the world right from the 1980s, but it is more intensified in recent time because of the impact of globalisation which is precipitated by continuous integration of the world market and economies. Banking reforms involve several elements that are unique to each country based on historical, economic and institutional imperatives. In Nigeria, the reforms in the banking sector preceded against the backdrop of banking crisis due to highly undercapitalization deposit taking banks; weakness in the regulatory and supervisory framework; weak management practices; and the tolerance of deficiencies in the corporate governance behaviour of banks (Uchendu, 2005). Banking†¦show more content†¦The banking sector in emerging economies has witnessed major changes to compete, attract international investment and increase capital market growth. Banking crisis usually starts with inability of the bank to meet its financial obligations to its stakeholders. This, in most cases, precipitates runs on banks, the banks and t heir customers engage in massive credit recalls and withdrawals which sometimes necessitate Central Bank liquidity support to the affected banks. Some terminal intervention mechanisms may occur in the form of consolidation (mergers and acquisitions), recapitalization, use of bridge banks, establishment of asset management companies to assume control and recovery of bank assets, and outright liquidation of non redeemable banks. Bank consolidation, which is at the core of most banking system reform programmes, occurs, some of the time, independent of any banking crisis. Irrespective of the cause, however, bank consolidation is implemented to strengthen the banking system, embrace globalization, improve healthy competition, exploit economies of scale, adopt advanced technologies, raise efficiency and improve profitability(eseoghene,2010). Ultimately, the goal is to strengthen the intermediation role of banks and to ensure that they are able to performShow MoreRelatedA Report On Mergers And Acquisitions1013 Words   |  5 PagesMergers and Acquisitions have always been considered as a †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. and ever since the first merger in Nigeria in 1980, Merger and Acquisitions have occurred in most sectors of Nigerias economy. 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Finance as the Lifeblood of Trade and Industry Essay

Essays on Finance as the Lifeblood of Trade and Industry Essay The paper "Finance as the Lifeblood of Trade and Industry" is an outstanding example of an essay on finance and accounting. Finance is the lifeblood of trade and industry. The business world has come to rely on ratio analysis and common-sized income statements and balance sheets when comparing two companies in the same industrial sector (Meigs Meigs, 1989). Also, there is a rough estimate gathered through experience that represents the Industry Average in a particular sector of the corporate world. In this case study, we are going to compare two enterprises in the newspaper industry, Companies O and P, better known as Lee Enterprises and The New York Times Company. While Company P has a well managed centralized inventory system, Company O conforms to the nature of a decentralized operation. P=Cent O=DecentDiscussionThis analysis will combine the information given with ratios mentioned for Companies O and P in the case study for more succinct and well-meaning analysis. Taking the net fixed assets first, we see that Company O has an Asset Turnover of 3.03 compared to Company P’s 2.59. This means that Company O has been more efficient in using its fixed assets than Company P. This would be expected as with centralized operations, Company P would not be in a position to use its fixed assets more profitably than Company O. Moreover it has recently invested in a large centralized headquarters.Regarding the percentage of intangibles to total assets, Company O’s ratio of 76.8 is more than double Company P’s 37.1 percent. This is explained by the fact that much of Company O’s decentralized structure is due to acquisitions and equity interests in unconsolidated subsidiaries, contributing to a high percentage of goodwill on its balance sheet.We next look at the Cost of goods sold percentages for O and P and can deduce that Company O’s CGS is 49.7 percent of sales, compared to Company P’s 40.5 percent for the same period. This sug gests that as a centralized enterprise, Company P has been able to take advantage of volume discounts on the larger orders it must have placed with suppliers of inks, paper and other materials compared to Company O. When revenues, expenses, and inventory ordering points are consolidated, some advantages are clearly possible with a centralized operation.Coming to Selling, General and Administrative Expense percentages, we see that there is again quite a difference, with Company O incurring 23 percent compared to Company P’s 39.7 percent. Although it would ordinarily be expected that Company P having centralized operations would be better off in this area through consolidating expenses, it has not been able to reap this benefit and Company O is better by comparison.Looking at the Price to Earnings Ratios for Company O and P, it is evident that Company O is better off with a P/E of 20.54 compared to Company P’s 13.29. This could reflect market expectations that Company O being decentralized could grow further by acquisitions and add more value to its name. However, the chances of Company P doing the same are slim, as it is already one of the largest and most established names in the newspaper industry.Lastly, taking into account the Net Profit Margin of both companies, we see that Company O has a net profit margin of 12.65 percent compared to Company P’s 8.86 percent. This indicates that Company O though being a smaller company overall, is a local monopoly in the area in which it operates, perhaps being the town’s only newspaper. Company P’s lower net profit margin is justified in the light of the intense competition for readers in major metropolitan cities.ConclusionWe have used the data and comments in the case study to analyze two companies in the newspaper industry. We conclude that although the size and market differentials contribute to differences, consolidation of operations can lead to advantages while decentralization is a boon in some other circumstances.

Compare and Contrast Sudanic and Mongolian Empires Free Essays

While the West African Sudanic Empire and Mongols were similar because they both had great centers of trade, such as Timbuktu and the Silk Road, and had a flourishing economy, the Sudanic Empire was greatly influenced by Islam whereas the Mongols accepted many different faiths and the Mongol Empire rose though war and conquest through violence, while the Sudanic Empire rose through more peaceful strategies. The Mongols and the Sudanic empires both had successful economies. The Mongols conquered China in 1220 and established control there. We will write a custom essay sample on Compare and Contrast Sudanic and Mongolian Empires or any similar topic only for you Order Now This control enabled them to have ownership of the Silk Road, which brought in plenty of cash due to the demand for Chinese products such as porcelain, silk, etc. The Mongols also took taxes and tributes from their subjects, which provided them with money for their military campaigns. The Sudanic Empire had control of the trans-Saharan trade, which included centers of trade such as Timbuktu. Under Sunni Ali, the empire reached high levels in trade and economic success. While the Sudanic Empire was greatly influenced by Islam, the Mongols did not follow any one religion. Through trade and interaction, the religion of Islam was spread to the Sudanic Empire. Because it was accepted by many rulers, much of the population converted to Islam. The religion became so popular that, in the 1500s, the trading city of Timbuktu had a prominent Islamic university 180 schools that taught the Quran. The Mongol Empire had a polytheistic religion in the beginning, but had no governing organized religion system. Through interaction, many Mongols converted to faiths such as Islam and Christianity because they were stationed in areas where those religions were popular, such as Persia and Baghdad. There was never any extremely popular faith that the Mongos followed. Although the Sudanic and Mongol empires had different faiths, they were both tolerant to other religions. The Sudanic Empire continued to let the African polytheistic religions practice their faith and the Mongols did not disturb the religions of the places they conquered but rather assimilated to them. The Mongol Empire rose though war and conquest through violence, while the Sudanic Empire rose through more peaceful strategies. The Mongols were known for their great skill on the battlefield. It was through this skill that they conquered their subjects. Killing and looting was the Mongolian past time and was a fun experience for them. Under Genghis Khan, the Mongols massacred and devastated civilizations. The Sudanic Empire was much less destructive, compared to the Mongols. There was some violence for example when the Mali Empire replaced the Ghanaians, but it was not as large scale as the Mongols massacring Baghdad. How to cite Compare and Contrast Sudanic and Mongolian Empires, Essay examples

The theme of Huxley’s Brave New World Essay Example For Students

The theme of Huxley’s Brave New World Essay The theme of Huxley’s Brave New World is community, identity, and stability. Each of these three themes represents what a Brave New World society needs to have in order to survive. According to the new world controllers, community is a result of identity and stability, identity is a part of genetic engineering, and stability is what everyone desires to achieve. These themes are represented in the book by the symbolic meaning of the phrase â€Å"Children are from bottles† and the hypnotic phrase â€Å"Everybody belongs to everybody else† (qt. Hazlitt 285). For a better understanding it is useful to explore these themes in detail. Community refers to the thought of one whole unit. Everyone is connected, by their actions toward each other in every day life, sexual desires, and what they do to remove the feeling of horrible emotions. This connectedness and lie, and its effects can be seen in the character of Bernard, a person who hates what society has become. Bernard is disgusted by the thought of â€Å"having anyone† he says, referring to sexual relations with women. Bernard is longing for a sense of individuality which he cannot posses in Brave New World. He emerged with a self-consciousness intensified to the pitch of agony. He is utterly miserable, and perhaps it is his own fault† (Huxley 86, ch. 5). Thereby jeopardizing the stability of the community as a whole, near the end, it was decided that he be banished to the Falkland Islands, so that he could not tell anyone else of his individuality. In Brave New World community is upheld and reinforced at any and all costs. Identity is the one thing that no one person can experience. There is no individual identity in Brave New World. There is only a collective identity which is shared by all members of society. Collective Identity is achieved by forcing everyone in society to conform. It is maintained in society by making someone who has any individuality feel different almost as an outcast. But sometimes as in the case of the character Bernard, people in Brave New World long for their own identity. For example, Bernard was having feelings and thoughts he is not proud of, â€Å"Did you ever feel you had some sort of extra power,† Bernard said to a friend while talking secret (Huxley 69, ch. ). The extra power Bernard is referring to is individuality. This shows that as much as the world controllers try to rob people of their individuality, it cannot be taken away that easily. Stability is a third of these three goals, but it is the one most mentioned in the book. â€Å"The world is stable now. People are happy; they’re blissfully ignorant of passion and old age; they’re so conditioned that they practically can’t help behaving the way they ought to behave† (Huxley 226, ch. 16). The desire for stability, requires the production of large numbers of genetically identical humans, because people who are exactly the same are less likely to come into conflict. Stability is seen in Brave New World to minimize conflict, risk, and change. Setting plays a particularly important role in Brave New World. The novel opens about six hundred years in the future. Civilization as people know it has ended. There has become a new world state, an all powerful government headed by ten world controllers. Almost all traces of the past have been erased. Faith in Christ has been replaced by faith in the community. The cross has been replaced by the T, and My Life and Work has replaced the bible. â€Å"Religion like genuine learning thrive on sacrifices and passions, which are impossible in a standardized superficial world with its cheap department store happiness† (Hesse 286). But some parts of the world were allowed to remain the same. For example, the savage reservation, the New Mexican home of the Zuni Indians. It is a world away from civilization, the Zunis are still threaten by disease, filth, and religion. A Farewell To Arms Analysis EssayWhen Huxley was sixteen and a student, a sickness made him nearly blind, but he was able to recover enough to attend Oxford university. Huxley graduated Oxford with honors and published his first book, a collection of poems, in 1916. It is during this time that he found a passion for writing. After college, Huxley moved to fascist Italy. His experiences in Italy with the fascist government and its methods reinforced his outlook that the future of society was doomed to a Authoring manner. With this idea in mind Huxley began to write Brave New World. It took only four months for Huxley to write Brave New World. It is important to remember that Huxley wrote Brave new World before the rise of Hitler to power in Germany and before Stalin started killing millions in the Soviet Union. Huxley had then no real life reason to make tyranny and terror major elements in his story. After world war II Huxley said â€Å"The future dictatorship of my imaginary world was a good deal less brutal then the future dictatorships† (qtd. Oreston 307). Obviously referring to the crimes of Hitler and Stalin before and after world war two. What Huxley thought to be a overdone look at the future dictatorship’s turned out to be no were as brutal as real life. Suddenly, the story of Brave New World did not seem so much like fiction as it did a window to the future. â€Å"That men do not learn very much from the lessons of history is the most important of all the lessons that history has to teach† (Huxley qtd. Yonson 3). It is this willingness of man to make the same mistake twice that in 1997 the ideas in Brave New World do not seem that far off base. Most people thought that with the collapse of the Soviet Union it would put an end to the suffering and an all controlling government. But with an influx of clones, test tube babies, government controls of television, needless violence, and the search for the perfect mood altering drug. Who is to say that Brave New World is not earth in fifty years? As more people lose their individuality they become connected with community. It is with this connection that they begin to let others control their lives and humanity is already headed in that direction. Brave New World should not only be seen as a great piece of science fiction. It should be seen as a warning. Of what can happen when people live up to the influence of outside sources.